How to Get Started with Accounting for Start-ups

Are you an aspiring entrepreneur looking to kickstart your start-up? Or you have recently launched one, and you are wondering how to manage your finances effectively. In this article, we will summarise the essentials of accountancy services for small businesses, entrepreneurs and start-ups in simple terms so you can get on the right track to financial success.  

Accountancy for start up

Why Accurate Accounting Matters for Start-ups


Running a startup can be a thrilling adventure, but it has challenges. One of the key challenges is managing your finances wisely. According to a 2022 Skynova survey, 44% of startup businesses failed due to a lack of cash. This statistic highlights the importance of ensuring your startup has enough runway before it becomes profitable or attracts investors.  

Accurate accounting is crucial in maintaining your startup’s financial health, stability, and growth. Here are some benefits of getting your startup’s accountancy services for small businesses, entrepreneurs and startups right:  

1. Ensuring Financial Health:

Accountancy services for small businesses, entrepreneurs, and startups help you keep a tight grip on your expenses and debts and ensure your business gets paid promptly for its products and services. This, in turn, keeps your startup in better financial health.

2. Impressing Investors:

Accurate financial records make it easier to project your start-up’s growth and value your business accurately. Investors, creditors, and lenders are more likely to be impressed by your professionalism.

3. Paying Correct Taxes:

Accountancy services for small businesses, entrepreneurs and startups track income, expenses, and deductibles, making tax calculations and filings much easier.

4. Better Analytics and Planning:

accurate financial statements like balance sheets, cash flow reports, and profit and loss statements, you can see where your startup stands financially. This data helps you plan for business growth effectively. 

Getting Started with Accounting for Your Start-up

Now that you understand why accountancy services for small businesses, entrepreneurs and startups are crucial for startups, let’s look at how to get started:

1. Choose a Business Structure: Decide on the business structure that suits your startup’s size and needs. Standard options include sole proprietorship, partnership and limited company (Ltd), and public limited company (Plc). Ensure you open a separate business bank account to keep personal and business finances separate.

2. Choose an Accounting Method: There are different accounting methods, but the two main ones are cash basis and accrual basis. Cash basis records transactions when money is exchanged, while accrual basis records transactions when they occur. Most startups record business income and expenses on an accrual basis; however, you can opt for cash accounting for VAT purposes to take advantage if appropriate. The choice depends on your startup’s needs.

3. Choose an Accounting System: You can manage your startup’s accounting manually, through automation, or with enterprise resource planning (ERP) software. Automation is often the best choice for startups, as it simplifies record-keeping and financial reporting. Most startups set up online software like to simplify their record-keeping.

4. Make General Ledger Entries: Ensure every financial transaction in your business is recorded in a general ledger. This includes income, expenses, credits, and deductions. Most accounting software can help with this process, such as

5. Reconcile Bank Accounts: Regularly compare your bank statements with the general ledger to ensure accuracy and detect errors or fraud.

6. Prepare Financial Statements: Create financial statements like balance sheets, income statements, and profit and loss statements to understand your startup’s financial standing and provide crucial information to investors and stakeholders.

In conclusion, accountancy services for small businesses, entrepreneurs and start-ups are essential for financial stability and growth. By following these steps and maintaining accurate records, you will be well on your way to managing your start-up’s finances effectively. Remember, as entrepreneur Tatiana Tsoir advises, “Don’t fake it till you make it when it comes to money, numbers, and taxes”—face it early and prevent bad decisions.

With a proven track record of helping over 20 clients successfully navigate their start-up journeys, some now valued at well over £50 million, Price & Accountants has the expertise to guide you every step.

Our range of professional services, including accountancy services for small businesses, entrepreneurs and startups, is tailored to meet the unique needs of startups and small to medium-sized companies. Whether you are just starting or looking to scale up, we offer virtual finance directorship, seed to series A investment round support, SEIS/EIS scheme setup, and corporate and directors tax planning to ensure your financial success.

Refrain from letting the complexities of accounting and financial management hold your startup back. At Price & Accountants, we provide the support you need to thrive. Contact us today at in**@pr*****************.com or give us a call at 02037355119, and let’s embark on your entrepreneurial journey together. Your success is our priority.