When you’re starting a business, it’s very important to consider finances. In fact, this is the most important thing to consider because it’s very easy for your business to go under due to a lack of money. You may not have enough capital to set up a business in the first place. Or else you might end up spending too much on any one aspect of your business. So here are certain things that you should consult your accountant about when you’re setting up a business:

Location

When you’re setting up a business, one of your main overheads is going to be rent. It can be very expensive to rent offices in certain areas but it may also be necessary if you’re going to attract the right clientele. Speak to your accountant before you take a certain set of offices on rent. The rent might seem reasonable to you, but your accountant will be able to advise you better.

Workforce

How many people are you planning to hire when you start a business? You may think that you have enough capital to pay 3-4 employees for six months, until you start turning a profit. But your accountant might advise you to be more conservative in your estimates and only hire 1-2 people, if possible.

Marketing/Sales

Maybe you’re planning a big marketing campaign for your product. If you’re thinking about placing ads on TV, in print and on billboards, it’s likely to cost you. Your accountant might advise that you go with a digital marketing campaign instead. It’s cheaper to send marketing emails, develop a social media presence and set up a website/blog. Plus, there’s always the possibility that your posts will go viral.

Products

What products do you put on the market? You might have ideas for low end products as well as high end products. And maybe you do eventually want to break into the high end market. However, your accountant might advise you to sell low end products first. This doesn’t mean that you have to compromise on quality. Just go with the practical option first and when you have a foothold on the market, you can start selling high end products too.

Contact us to learn more about the right accounting questions to ask when setting up your business.