Accountants for Small Businesses in Milton Keynes
As expert accountants for small businesses in Milton Keynes and across the UK, we have helped many new businesses throughout the startup process, from setting up a limited company to providing invaluable business and tax advice that is vital to the growth and success of a new business.
According to statistics, about 58% of new businesses fail within the first four years. Whilst there may be many reasons for this, such as a poor business model and product, inadequate bookkeeping (which leads to a complete breakdown in the management of finances), etc one of the main reasons for the failure of new businesses is the fact that many business owners simply do not take into account all the expenses involved in starting up a business. Although some expenses may be one-off investments, from our experience as small business accountants in Milton Keynes (where countless new businesses are being set up every day across a range of industries), many of these ‘hidden’ costs are in fact annual expenses incurred by a business.
Here are five of the most common expenses overlooked by many new business owners:
1.) Legal fees
Most new businesses, depending on the industry, will require a number of legal formalities to be completed before they can even begin trading. Needless to say, in the vast majority of cases it is essential to hire a professional solicitor for this purpose which, depending on the nature and amount of work that needs to be done, can easily cost a handsome amount!
2.) Professional fees
This is again a category of expenses that is overlooked by many new business owners. When starting up a business it is a good idea to work with a qualified accountant so that you can be assured that your finances are being managed properly – remember that poor management of finances is one of the main reasons for the failure of new businesses, so it is worth paying a qualified accountant to do all the hard work for you. As an added bonus, by working with an accountant you can obtain highly valuable business and tax advice which will be extremely beneficial for your business both in the long and short term.
3.) Insurance
Another potentially pricey annual expense that a lot of new business owners completely miss! The type and cost of the insurance required for your business depends on many factors, including your industry and whether your business is classified as high or low risk, etc. It is worth doing some research on what kind of insurance is required for your business specifically – and then setting aside the required amount (and a bit extra!) each year for this category of annual business expenses.
4.) Marketing and advertising costs
This is another category of costs which may well be annual, as opposed to one-off expenses when setting up your business.
One of the most common expenses that are ignored by many business owners is website costs. Unless you are planning to build and manage your own website, you can expect to pay a decent amount to have your website built, plus monthly fees towards website hosting and maintenance. In addition to website hosting, you may need to employ the services of an SEO expert to help with your website’s ranking on Google, which can easily cost up to £600 per month!
Advertising costs also take many new business owners by surprise – unlike established businesses, which continue to expand through recommendations and credibility, new businesses rely heavily on advertising, which, especially when in the form of Google Ads, can again be a high annual cost to the business.
5.) Specialist equipment and technology
Most businesses rely on some kind of technology in order to run smoothly. At the bare minimum, this includes both desktop computers and laptops, along with printers and scanners in addition to specialist equipment which may be required by businesses in your specific industry.
If you are thinking of starting a new business and are looking for accountants for small businesses in Milton Keynes, please contact us to arrange a free consultation to discuss your business requirements and we would be happy to help you. You can either call us on 01908 646 100, email us at info@khan-co.com or use the contact form and we will be in touch.