What information do accountants ask a start-up?
The questions from an accountant depend on the type of the start-up; as you have not mentioned the business that you have planned to do, I am just going to give some general information, but that might not apply to your business entirely.
First, a finance person will be interested in your business plan covering most business areas. A business plan includes an operational, marketing, and financial plan. Also, besides the business plan, you need to have your budget, cash flow, and economic forecast that generally goes along with the business plan. An accountant and other stakeholders will want to see your business plan to ensure you are ready for a start-up.
In addition to the above, you need a business model that details your business.
First, you have to have a deep understanding of your business, asking yourself a few questions.
These are questions that you could ask:
- How much value could my product or services solve my potential customers?
- What problem will I solve with my product or service?
- What could I charge for that?
- What is the method that I can use to find my customers?
- Will I be able to generate enough income?
- If I cannot generate income, how could I do that?
Once you create your business model, the person you expect to prepare your business plan will use that to write the business plan. But you might need an accountant’s help to prepare your financial plan that includes everything I mentioned.
If you need investments, you need to produce all the documents I have mentioned here; if not, you will never be able to get any funding for your business; that will be the advice from a finance person.
Once an accounting advisor is happy with all the above, they will ask you about the accounting procedure you need to implement in your business. Because you have to be clear about the accounting procedures from the start of your business; if not, you might face a mess in the accounting side of your business, and you will not be able to assess the business’s financial situation.
Then if your business expands within a year and the sales increase, the accountant will advise you to register your business with the VAT office; in this way, the list goes on from the start-up of your business. Even though you are a start-up, things might change quickly; therefore, getting the proper advice from an accountant regarding the above gives you the knowledge and helps you take care of your business.
So, the accountant will suggest a suitable system for your business to implement from the start, and you cannot afford to ignore that as a business without financial control could fail in the long run. Then accountants will discuss the financial statements that must be prepared at the end of the first financial year, including filing the accounts with the authorities. If you are a sole trader, you must file your self-assessment returns and the reports with the company’s house, calculate the corporation tax, and pay that to the tax department. If you are a charity, you must comply with the charity commission rules and file your accounts with the charity commission.