Date posted: 16th Jun 2025
It’s a familiar story: an entrepreneur sets up a limited company, gets a logo made, sorts the website, and opens a business bank account. You’re lean, you’re focused, and you’re watching every penny — so the thought of hiring an accountant right away feels like a luxury.
Totally understandable.
But here’s the honest truth: delaying that decision is almost always a false economy. And we’ve seen the consequences more times than we can count.
Here’s what often goes wrong when you wait:
- Shareholding isn’t structured properly — meaning missed opportunities for tax efficiency, especially if you’re thinking of bringing in a spouse or future shareholders.
- No payroll in place, so you’re not paying yourself tax-efficiently (and often, not at all — which causes issues with mortgage applications later).
- Money being drawn with no formal records — leading to overdrawn director’s loan accounts and unexpected tax bills.
- Expenses are underclaimed — because no one has explained what qualifies for tax relief and what doesn’t.
- No tax provision — which makes the first Corporation Tax bill a shock, often just when you thought you were finally turning a profit.
None of this happens because people are careless — it happens because starting a business is overwhelming, and most founders are wearing many hats.
The Value of Early Advice
Getting an accountant involved at the start is about building solid foundations — not just for tax, but for confidence, clarity, and growth. Here’s what early advice gets you:
- A proper structure — so your business is set up to grow in the right way, whether you’re solo or plan to expand.
- A clear tax strategy — covering salary vs dividends, what to set aside, and when tax liabilities will arise.
- Peace of mind on compliance — no guessing about VAT, Companies House filings, or deadlines.
- Accurate recordkeeping — with the right tools, from day one, so you’re not retroactively trying to piece together 12 months of receipts.
- An ally who knows your business — meaning you’re never going it alone, even when things get complicated.
Most importantly, the right accountant becomes part of your team — someone who helps you think strategically, not just someone who files your tax return.
Start on the Right Foot
If you’re serious about building a business that lasts, get the foundations right early. You don’t need a full finance department — just a good adviser who understands what you’re trying to build and can help you avoid the easy mistakes. It’ll cost a bit now. But it’ll save you a world of pain (and money) later.
If you are starting a business, please give us a call for advice.
