Show Me the Money! Could an Accountant Stop you from Becoming Another Statistic?August 24, 2020 8:25 pm
60% of UK start-ups don’t make it past year 2. It’s a frightening statistic – and in the recruitment industry, the biggest single cause is owners losing sight of the money. So let’s look at the reasons an accountant could be your closest ally when starting your own recruitment agency.
Being your own boss means you get to decide how much or how little an accountant gets involved in your new business’s finances. Or if you need one at all. But I highly recommend you go into starting your recruitment agency with a plan for managing your finances. And for most of us, that means passing some of that responsibility onto a financial expert.
Accountants and tax are like cheese on toast – a natural fit. When you’re starting a recruitment agency or frankly, even if you’ve been running one for years – tax is a constantly moving beast. Just when you think you’re on top of it, a new rule or regulation comes in to throw you off.
So you need to get this right, and the right accountant will take on the burden of knowing what all the tax codes mean and help navigate you through the forms the government likes to have on file. They’ll also help you be ready when it’s time to hand over the money.
They can help you make a plan
When you’re writing a business plan (yes, you need one) you must think about the realities of your financial starting pot.
- Do you need a loan?
- Have you lined up any investors?
- Can you start without those, anyway?
If you’re putting together a business plan, it’s best not to just take wild guesses – an accountant can help you be realistic and put an accurate figure on how much it will cost to achieve your early goals.
Money gets complicated when you grow
At the beginning, if you’re naturally good with money, you can probably manage with a bit of ingenuity, a pretty looking spreadsheet and a good calculator app on your phone. But when you grow your recruitment business, the money side gets messy.
Cash flow in particular can cause a real headache in recruitment. There’s also rent, expenses, paying suppliers, salaries and much more. It all mounts up when you have employees to consider. So a great bookkeeper can take that on for you and free you up to do what you’re best at – recruiting!
Always get recommendations and check out their credentials before choosing the right accountant for your business. Even better, find one recommended by another recruitment firm. The more they understand your industry, the better they can help.
Jason Connolly set up JMC Legal Recruitment in 2016 when he was still in his 20s. JMC Legal quickly established itself as one of the big players in the industry, and Jason has also become a well-known fixture in the press, offering advice and support.
JMC Partners is looking for recruiters interested in starting a business partnership under the JMC brand. Find out more here or contact our office for more information.
This post was written by jmcpartnersTags: accountant, business, Entrepreneur, plan, Recruitment, start-up
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