The Journey ahead
You have decided that you want to run an electrical services business – now decide how you will achieve this. Speaking to a good accountant makes the journey much smoother and fruitful in the long run.
Here at KG Accountants, we help hundreds of Electricians, Plumbers and Decorators embark on this Journey and what a massive difference this makes in achieving their goals.
So this week we look at ways of starting trade as an electrician. The two main options are
- Buy an existing business: This option is great if you have a few years experience under your belt and you know what you’re doing.
- start up a new business from scratch: The course of action you choose will affect the costs you will incur and may also affect how soon you start to receive income from the venture.
Important House Keeping rules to master
‘Cash sales’ means all income from electrical work which is received at the time you complete a job. While some of your customers may pay you in cash, remember that Cash sales can also include:
- Cheque payment. (Not common these days) and there is a possibility it might bounce. It is advisable you only take this form of payment from corporate clients who have been trading for quite a while.
- debit and credit card payments (This is the preferred option)
- bank transfers – perhaps from larger clients like housing associations but possibly also from other customers
To prepare your cash flow, you need to estimate how much income you will receive over the next twelve months, including VAT.
To do this you will need to decide on the services you will offer and how much you will charge for the work you do.
You’ll need to think about what proportion will be paid for there and then, and what proportion will be paid for on account. You will also need to estimate the amount of work you are likely to get.
Limited Company Registration, Self Employment and all the initial Setup.
Please Let us help you today register your limited company and ensure the legal structure is Tax Efficient!
And that is just the start!
If you need to speak to a Pro active Accountant about your new venture, please contact us on 0208 679 4690 please Visit our website.