Accounting- when to start?

[matteo]

Hello,

this is my first message on the forums, apart from my introduction.

Being the first, it quite suitably is a question!

I'm planning to open a limited company (it would be operating in the fashion sector), but I won't actually begin trading before August, so in a few months time.

Would my best option be to register the company just prior to trading (i.e.: just before presenting my products to retailers/wholesalers etc., and hopefully selling them), or should I do it now?

I'm thinking of doing it now, for a number of reasons (a days-old company might not look too legit to a client; I could perhaps start recording the company's expenses related to website hosting costs, sourcing costs etc., rather than pay for them myself as an individual, and maybe be able to claim them back at a later stage, I suppose; etc.).

But, if I were, when would I need to start relying on, and therefore paying, an accountant? I think I could handle the initial bookkeeping myself, as it would only be a matter of keeping track of expenses, until I actually start trading. Is that possible? Could I contact an accountant at a later stage?

I know an accountant is an invaluable asset to a company, but, as I'd like to save as much start-up capital as possible, I'd like to know how far I can go on my own (and my business partner's) legs.

I'm an absolute newbie, so forgive any possible silliness, or imprecise use of terminology.

Thank you!


Matt

 

[businessfunding]

Most accountants will give you a free consultation and some useful advice

However, as professionals they will charge you for any work undertaken.

 

[faradaykeynes]

It is good idea to form company now, any web development cost can be capitalized initially, any thing after that will be written off to P&L. See if your suppliers require you to be VAT registered as most big suppliers want it then you will get time to be vat register and get bank account open. There is a free excel sheet on my site to keep records for basic book keeping, its very simple and basic, feel free to download. Put paid up share capital as £101

 

[Moneyman]

buy a company for £50 from a formations company that should produce all the books and paperwork etc all filed correctly. then go for the bank account....that can take an age. you wont have to file accounts for 18 months so no rush.
BUT
get into the habit of doing as much of the book keeping as you can. list every penny in and out and assign them to a cost centre. sometimes the banks will give you a freebie. or download a spreadsheet

 

[Uwe (Invoiceberry)]

Hi,
I agree with the previous writers. It is best to get your company formation process started right now.
The formation of a Limited company does not take too long, however, you still will need to apply for a VAT number, bank account, etc.
Especially bank accounts can take a while to get set up/receive debit and credit cards/get online banking working in my experience.

Best,
Uwe

 

[matteo]

Thank you all very much for your swift and informative answers!

 

[MyAccountantOnline]

One thing to bear in mind is that banks can take quite a while to open a limited company bank account - I've seen it take 3 to 4 weeks for some of our new clients.

I wouldnt be too quick to jump in and use cheap/free software for bookkeeping. If you get good systems in place whilst the company is new/small it'll save you an awful lot of hassle when things get busy.

You neednt spend a huge amount - one package I highly recommend, use myself and have many clients using is Accounts Portal.

Good luck with the new venture

 

[Siralex]

Put paid up share capital as £101

as a matter of interest, why 101:|

 

[matteo]

The formation of a Limited company does not take too long, however, you still will need to apply for a VAT number, bank account, etc.

Do I need to apply for a VAT number, as I don't think I'm likely to meet the £ 77,000 p/a threshold? Also, as I would be sourcing goods from aboard, elsewhere in Europe, I wouldn't have to pay VAT, If I'm correct.

as a matter of interest, why 101:|

Actually, I second that, why £101?


Matteo

 

[faradaykeynes]

I have been told, it a bit of edge when it comes to company credit scoring as all companies generally do £100 or £1,000 share capital, so just a pound above makes company stand out in credit check system.

 

[leafgreen]

You don't need an accountant to form a company. Google "company registration" and there should be tons of companies out there offering to do all the paperwork for you for a very small fee (I did mine for about £25).

You DO need an accountant for company tax returns etc as these are much more complicated and better left to professionals. Check out Taxaccolega. They offer reasonable fees for start-up companies and are very helpful.