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Learn more about company formation and how to start your business as an entrepreneur.

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Company Formation

Everything you need to know about Company Formation

Everyday, new business ideas are cropping up in peoples’ minds and with that also comes the desire and need to incorporate and begin selling goods and services. This is because, except when setting up as a sole trader, a company cannot begin operation until it has been incorporated or registered.While the majority generally feel like the devil is in the details for incorporating a business and for the well established businesses alone, the truth is it is actually not.<blockquote>Start-up and small scale companies are emerging and Companies House get to register many and even more than they can handle per day.</blockquote>In essence, the processes involved in company incorporation or registration may be long but just paying keen attention to the fine print will make you realise you can do it all by yourself, though you may involve the service and expertise of an agent to help if you don’t have the time to commit.You just need to know the processes and every other thing becomes easy. But first…<h2>What is company formation?</h2>Company formation or incorporation is the process of legally incorporating a business as a limited liability company at the end of which a certificate of incorporation is issued. It is also known as company registration.At the point when the company registers with the Companies House, the enterprise becomes a separate legal entity from its owners and therefore becomes responsible for its own finances, assets, and liabilities.This is different from sole trading where the business and its owner are seen as the same.The process of company formation is generally divided into four parts which are – promotion, incorporation or registration, capital subscription, and commencement of business.In this article, we will focus more on the processes related to company registration.<h2>How to register a company?</h2>Be aware that sometimes companies registers<ol><li>directly online with Companies House (this cost only £12 and can be charged on your debit or credit card),&nbsp; &nbsp;</li><li>by post - download and print the form IN01 (this will cost £40 and it takes about 8 – 10 days to process),&nbsp; &nbsp;</li><li>through an agent, or&nbsp; &nbsp;</li><li>using third-party software.</li></ol>Regardless of the method you choose to use, you should be familiar with the processes involved in order to make the necessary documents and information available.As mentioned above, there are also companies in big cities like London, that provide different packages online and register your business for you.These packages include free digital versions of company certificates that are sent directly to you via email as PDF documents. Additional extras like printed company documents, certificates of good standing, and apostille certificates can be included in your order. These extras attract added fees.You can also choose to register for Corporation Tax while registering your company. Otherwise, you can do the registration with HMRC after you are done with company registration.<blockquote>Note that if you prefer to delegate this task of registering your company, there are specific companies that do all the work for you.</blockquote>The aim of these companies is to ensure that you can concentrate on your core business, rather than wasting time on administrative procedures.<h2>How long does it take to form a company?</h2>It usually takes 5 to 10 minutes to complete your company's application, and then between 3 and 6 hours of work for your company registration to be approved.Although, depending on Companies House workload of the day, this can take up to 24 hours. It can also depend on the type of company that you are starting up and the size of your operation.<h2>What details are necessary to form a company?</h2>Here is the step-by-step guide and details necessary for registering your own company in London:1. To start, you have to be sure that setting up a company is right for you. So, find out if you should register as a sole trader, business partnership, overseas company, social enterprise, or an unincorporated company instead. If you are not of these, then you can proceed to step two. Also, you should know if your company is limited by guarantee or share because you will need the information during the registration online. 2. Next, choose a name under which to register your company. -First, there are rules guiding company name choosing.<ul><li>The name cannot be in use by another company or be similar to that which is in use by another company.</li><li>It must end with Limited or Ltd, or the Welsh version of it, which is Cyfyngedig or Cyf if you are registering in Wales.</li><li>The company name cannot be the same as another name, too much like another name, be offensive, or contain any sensitive word(s)</li></ul>-Secondly, you will need to make sure that the name you have chosen is not already used by someone else, so you need to do verification first. You can do this online through the service of Companies House register. Simply enter your company name into the name check tool and search. Name search is free. After you have confirmed the validity of your company name, you can proceed to the next step.3. Choose the directors and or the company secretary. Choosing one or more directors is important but a company secretary is optional. 4. Choose your company’s shareholders or guarantors. You need at least one of either (as applicable) and this person may or may not be a director. Also, choose the people with voting rights over your company (persons with significant control – PSC). 5. Next, prepare your documents of association (the statement of organisation of your company, describing how your company would run) i.e., memorandum and articles of association. You may wish to involve the services of a lawyer in this step for a professional guide. Know the records you need to keep i.e., the company and account records, minutes of meetings, votes, etc. You should seek the help of an accountant to make sure your company account is rightly balanced. Also know that you need to keep those records for a minimum of 6 years from the end of the last company’s financial year. 6. Register your company! For this, you’ll need<ul><li>company addresses which must be a registered physical office address in the country in which your company is.</li><li>a SIC code (Standard Industrial Classification code), the list of which can be obtained from the Companies House website. This code provides Companies house with a description of your company’s nature of business.</li><li>at least three of the following information about you and your guarantors or shareholders<ul><li>mother’s maiden name</li><li>national insurance number</li><li>telephone number</li><li>town of birth</li><li>passport number</li><li>father’s first name</li></ul></li></ul>After you are done with your registration online and your documents have been verified, Companies House issues you a digital or electronic certificate of incorporation via email within 24 to 48 hours (if you register directly on their website). If you have requested a hardcopy certificate while registering, it will be sent to your registered office address.<blockquote>Also, know that if your taxable turnover is more than £85,000, you must register for VAT. If you take over a VAT-registered business, buy or sell VAT-exempt goods, your business is set up in Northern Ireland, or you supply goods and services to the UK even if you are not based there, then you need to register for VAT.</blockquote>You can still choose to voluntarily register even if your turnover is below the threshold because VAT gives your company a kind of credibility that makes people think your turnover is high. Your VAT can also be claimed on the goods and services you sell. This means that VAT registration can be good for your company.Note, however, that if your taxable turnover exceeds the threshold and you have not registered for VAT in due course, you will be penalised by HMRC.<h2>What is a Limited Liability Company?</h2>The term limited liability simply means that, compared to sole trading, you would not be solely responsible for the liabilities like debt, litigations or losses against the company.<blockquote>Rather, when a business registers a LLC, the company becomes legally separate from its owner and takes responsibility for itself.</blockquote>In addition, the tax payments may become reduced.<h2>Is there a downside to registering a business as an LLC?</h2>Well, since everything that has an advantage also must have a disadvantage, the answer is yes. The processes involved in proper accounting are more elaborate and may compulsorily need the expertise of an accountant, and there is the need for filing annual accounts and confirmation statements with Companies House.The annual accounts filing involves presenting your company’s balanced account records each year to the government while the confirmation statement is simply used to declare that all information presented to the Companies House is accurate. Doing this every year may be tedious.<blockquote>Also, since all your company’s information is available in the government’s registry, there is no privacy and your competitors can easily get information about your company if they are so inclined.</blockquote>In conclusion, there are many different types of companies that you can register and these range from sole traders to limited companies.Registering a company in London, or even in the UK, is not difficult, but it does require some paperwork and certain legal steps.<blockquote>The process starts with you deciding on what type of company formation you want and filling out an online form on the government website at Companies House.</blockquote>Once your application online has been submitted, you will need to provide digital copies of your passport or identity card for all members of the company and proof of address for each member of staff. You will also need to provide bank statements showing that each member has £5,000 or more in their account.

Registering a company is not as easy as it sounds. It takes time and effort to form a company. It will be difficult to register a company without the help of an expert in the field. In this article, we will cover what you should do to register your company online, what you need to consider before making the decision, and how to avoid some common mistakes.

Company formation: How to register a company?

<h2>Why is choosing a business structure important?</h2>When you choose a business structure, you are in a sense giving your business some level of organisation that enhances better management.Choosing a legal business structure is also useful when registering with the government. Either or both HMRC and Companies House will want to know what your business structure is so that you can be taxed appropriately. For example, sole traders get taxed lower, at certain levels of income, than other business structures.<h2>What are the different business structures?</h2>There are four main types of business structures in the UK, although each many have different variants of it. The four main types are<ul><li>Sole Proprietorship.</li><li>Business Partnership.</li><li>Limited Liability Partnership, and</li><li>Limited Liability Company (LLC).</li></ul>Keep reading to find out more about each of these business structures and what you stand to gain or lose when you set up using any of them.<h4>1. Sole Proprietorship.</h4>This is probably by far the most common business structure today, and you can guess the reason why – freelancers and digital nomads fall under this category.A sole proprietorship or sole trader is a business structure where the owner is the sole decision maker and answers to no one. S/he is the don of his or her business and gets to decide what happens to the company. Legally, the company and the owner are seen as one and the same and can thus sue and be sued. This business structure does not need to register with Companies House but must register for Self-Assessment with the HMRC voluntarily or compulsorily when it starts making up to £1000 in profit.<h6>Pros</h6><ul><li>You make all the decisions regarding your business and answer to no one.</li><li>You can employ staff to work with you.</li><li>You keep all the profits in the business after tax.</li><li>You do not need to register with HMRC unless you have started making up to £1000 per annum.</li><li>It is easy to set up and at a low cost.</li><li>No need to file annual accounts.</li><li>Accounting can be done traditionally and easily.</li></ul><h6>Cons</h6><ul><li>You bear all liabilities, i.e., loss or debt, on your own. No fallback.</li><li>All your personal properties are fair game in a legal suit – you and your business are one legal entity.</li><li>The death of the owner may mean the death of the business too.</li></ul><h4>2. Business Partnership.</h4>The business partnership or simply partnership is another common business structure. In this case, you are going into business with another person or limited company, either of which is considered a legal entity. Just like the sole trader, a partnership needs only to register with HMRC for Self-Assessment too, no need to register with the Companies House.When registering with HMRC, you should have a business name and a nominated partner. The nominated partner is responsible for tax filing and accounts management. Also, it is important to properly state in the business statements who bears what liabilities, ownership, profits, and what happens to the business in case of liquidation, insolvency, or a partner wants out. All these must be outlined succinctly.<h6>Pros</h6><ul><li>Easy formation and management</li><li>Liabilities are not borne by just one person</li><li>Easier to raise capital as opposed to sole trading</li></ul><h6>Cons</h6><ul><li>Liabilities are borne by partners, i.e., the partners and their business are seen as one legal entity.</li><li>The business may fail if partners disagree on something(s).</li></ul><h4>3. Limited Liability Partnership (LLP)</h4>This business structure combines the attributes of a partnership and limited liability company.Its attribute as a partnership is that its members can be as many as possible but at least two of them must be designated as managing members tasked with the responsibility of filing annual accounts.On the other hand, its limited liability attribute limits the liabilities borne by each member to how much they contribute at the beginning of the partnership. Hence, their profits are paid to each member as income such that each member has to register to pay tax individually through the HMRC. However, the company itself must be registered with Companies House<h6>Pros</h6><ul><li>Liabilities are not borne by you alone</li><li>There is a possibility for continuity in case of the demise of one of the partners</li></ul><h6>Cons</h6><ul><li>Partners must declare their assets and income.</li><li>Business must commence within a year of registration or be removed from the Companies House list.</li></ul><h4>4. Limited Liability Company (LLC or LTD)</h4>A limited liability company is a company that is seen as a separate entity to its owners and can thus bear its own liability. An LLC can be limited by guarantee (CLG) or shares (LTD). The limited liability company must be registered with Companies House before the commencement of business and HMRC for the payment of corporation tax.Before incorporation, the LTD must clearly state its director(s), shareholder(s) or member(s), directors’ and shareholders’ registered addresses, company’s registered address, company SIC code, PSCs, and SAIL address, etc. The company must also have a memorandum and article of association, both of which clearly state their mode of operation and starting shares for each shareholder.<h6>Pros</h6><ul><li>Liabilities are borne by the company itself with the shareholders only bearing the liabilities for the shares they have at the incorporation of the company.</li><li>The director and shareholder can be a single person so an individual can own a limited liability company.</li><li>The company can be taken public to become a PLC (Public Limited Company) through an IPO (Initial Public Offering).</li><li>It is easier to raise funds for the company because it has more credibility with financial institutions.</li><li>The death of one director or shareholder does not mean the end of the company, i.e., there is continuity.</li></ul><h6>Cons</h6><ul><li>Can be difficult to set up.</li><li>Annual filing of accounts and confirmatory statements</li><li>Accounting is not easy to do and requires the expert input of an accountant.</li></ul><h2>What are the factors to consider when choosing a business structure?</h2>You should consider the following when thinking of choosing a business structure<ol><li>Your financial strength. If your financial strength is not yet in favour of a limited company, you should consider starting out as a sole trader or partnership. It is easier to scale up – become a limited liability company, than scaling down to sole proprietorship &nbsp;</li><li>Continuity. If you want your business to have a long life, you should consider a partnership instead a sole proprietorship. Limited liability partnerships and companies can also exceed your lifetime if managed properly. &nbsp;</li><li>Liabilities. Depending on the nature of your business (especially the high-risk businesses like construction or health-related businesses), it may not be wise to bear all possible liabilities on your own. &nbsp;</li><li>Control. Setting up as a limited liability company may not necessarily mean you give up control of your company to some strangers. This is because you can be both the director and shareholder at the same time but the business is a separate entity to you. Hence, the business bears its own liabilities itself. &nbsp;</li></ol><h2>Conclusion</h2>Making the choice of a business structure is as important as starting the business itself. It is therefore important that you outline the goals, both short-term and long-term, of the company before choosing the company structure that best suits you.

Did you know that choosing a legal business structure is important to be able to manage your business well? This article will enlighten you on some of the organisational requirements for each of the business structures. 

What business structure to choose in the UK?

Before you can operate a business, you must first be sure of how to start one. The process of starting a business includes planning, and needs you to make important financial decisions, and complete several legal steps before starting the business.Continue scrolling through this guide to read about what you need best in coming up with sure working business ideas in the following steps. These are free ideas to help you and guide you on how best to structure and build a new company/companies, attract customers, create a website and marketing of your products and services.<h2>Guide to start a new business.</h2>There are many companies’ types and to find which best serves your needs, you should work to choose one that best fits your company’s structure, work and products and services you sell. It is important also to be sure if you want your work or services to be online or offline.An online business works best if your finances are limited since you only need to create or build a website to sell your products and services and use online marketing to boost your sales.<h4>Step 1: Market research</h4>Market research will help to reveal whether or not your new idea can best become a good profitable working business. It will guide you to gathering marketing information about new customers and existing companies in your neighbourhood. You will want to use this data to help you make or create a competitive edge for your business.Reading people or consumer behaviour and economic trends are used in marketing research to confirm, guide and improve your business idea.It is important to have an early understanding of your consumer base. Marketing research is more likely to help you to mitigate risk even if your business is still a glimmer in your eye.<h4>Step 2: Prepare a business plan</h4>A business plan works as the cornerstone of your businesses. It makes a road plan to create structure, operate, and build your new business. You'll use it to persuade people that working with you — or investing in your company — is a good if not best investment.Business plans will more likely help you in servicing your financial needs or attracting new business partners. People want to be confident that their investment will make a profit. Your business plan is the step through which you will persuade others that working with you — or investing in your company — is a right investment. You can be sure to find free business plans online to help you idealise your plan.<h4>Step 3: Financing your business</h4>Your business plan will help you in determining the money or capital required to start your business. If you do not have that amount on hand, you must either raise money or borrow it. Fortunately, there are more options than ever for raising financials.<h4>Step 4: Choose a location for your business</h4>The location of your business is also more likely one of the most important decisions you'll make. Whether you're starting a brick-and-mortar business or an online store, the decisions you make will have an impact on your taxes, legal obligations, sales and earnings.<h4>Step 5: Determine the structure of your business</h4>The legal structure you pick for your company will have an effect on the requirements for business registration, the amount of tax you pay, and your personal accountability.<h4>Step 6: Decide on a business name</h4>It's not simple to choose the ideal name. You'll want one that is consistent with your brand and evocative of your spirit. Additionally, you'll want to ensure that your business name is not currently in use by another party.<h4>Step 7: Register your business</h4>Once you've chosen the ideal company/business name, it's time to make it into the legal system and safeguard your brand. If you conduct businesses under a different name than your own, you must register with the federal government and maybe with your state government as well.<h4>Step 8: Obtain federal and state tax identification numbers</h4>Employer identification number (EIN) is required for critical steps in starting and growing your business, such as opening a bank account and paying taxes. It's comparable to a business's social security number. Certain states — but not all — need you to obtain a tax identification number as well.<h4>Step 9: Submit applications for licences and permissions</h4>Maintain the seamless operation of your business by adhering to legal requirements. The licences and permissions required for your business will vary according to industry, state, and region.<h4>Step 10: Open a bank account for your business</h4>A small business checking account can assist you in resolving legal, tax, and important day-to-day business-related concerns. The good news is that setting one up is straightforward if you have the right registrations and documentation in hand.<h4>Step 11: Companies also need insurance</h4>The type of business insurance you’ll need depends on your company. You can use insurance services to cover your business in the event of damages.In conclusion, the UK has become one of the most popular countries in Europe for business due to its diverse economy and low-cost services. It is important to note that the British government offers a number of support services for business owners and entrepreneurs. These include financial advice, grants and loans, business mentoring, access to research centres and more.The UK government has also created a number of different types of businesses that you can start. These include:- A sole trader- A limited liability partnership- A limited company (limited by shares)- An unincorporated associationSo there are plenty of opportunities for entrepreneurs to start their business, what are you waiting for?

The UK is one of the most popular countries in Europe when it comes to starting a business. It has a strong economy and a wide range of opportunities for businesses. Nevertheless, operating a new business is not a small thing for one self or other people around you. Keep reading this article to learn how to set up a business in United Kingdom. 

How to start a business in the UK? 10 steps guide

Acquire new information about virtual office and the associated services to make your projects take off.

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Virtual Office

Everything you need to know about Virtual Office

The virtual office provides an escape from the burden of sourcing large capitals to rent office space for your company. It is therefore a go-to option if you don’t have a large initial capital.Location is a priority when setting up a business. Every business owner knows that to make maximum sales of their goods and services, locating their businesses in prime areas is of utmost importance.This is why many start-up companies and new small businesses strive to find an office space in prestigious locations, no matter how small.Now, this is a good endeavour provided you have the capital for it. Considering the fact that small businesses/companies usually do not have access to large capitals, especially when they are being run by single individuals, locating their company in prime areas thus becomes a problem.The advent of COVID-19 also saw to the fact that newly incorporated small companies are cropping up. In addition, many employees have gotten used to working from home and would like to continue that way, rendering the office space of their employers almost useless.Large companies that are insisting on their employees resuming fully for onsite duties are experiencing mass resignations worldwide. In other words, the world has gone digital. Renting an office space when no one may get to use it seems redundant.Fortunately, the concept of virtual office space had been before now, only gaining more recognition because of the number of people that are looking into that option. However, for people who are unfamiliar with the concept, we shall take some time in this article to showcase the usefulness and importance of making use of virtual offices for your business.<h2>What is a Virtual Office?</h2>When one hears the word virtual, it is natural to think that such a thing exists in the cloud. While this may be true in the case of virtual offices since the company will not be physically located there, the fact still remains that a virtual office is a real estate location with an actual street number and can be found on a map or with the aid of a GPS device.This kind of offices are legal in the UK since they are physical addresses which is the requirement for an address to be registered with the government.So, a virtual office is the physical office space in a prime or prestigious location – Wharf Street in London for example, through which a company or business can receive its official correspondences without being physically present there.<blockquote>The virtual offices are usually provided by service providers who actually own or lease the office block or building. They provide highly trained professionals who receive, sort, forward, and discard mails as per prior request of their clients.</blockquote>In other words, as many as possible companies can use the same location for their virtual office address – just as in the case of actual office buildings with many companies or firms utilising different floors or wings in the same building.These virtual offices provide some free services when you sign up. For instance, official mails are handled by trained professionals, scanned unopened and sent via email to you. This means that you get to decide what they do with the mails – either they send them to a predetermined address or open and email you the content.If they are spam mails from advertising companies for example, making the choice to discard such before it gets to your doorstep becomes easier. Nevertheless, just like physical office space, no matter how small, you’ll need to pay for a virtual office. The providers that make the virtual office available have to lease or buy the physical building themselves. So, getting a free virtual office is a definite no.A virtual office can also be a coworking space. A coworking space or room is a place that has facilities and is used by different people at a time; people in the building or room may work as a team or individually. Coworking spaces can thus be regarded as common rooms where people come to work together as a team on a common goal or individually with different agendas.A PO Box can however not be used as a virtual office, especially if you are considering using it as a registered address. Rather, you can pre-register with the Post Office itself to use the street address of the post office as your virtual office address. In such a case, the post office receives your package or mail directly and dispatches it to your address. There are post offices that offer these kinds of services 24/7 these days.<h2>What are the advantages of a Virtual Office?</h2>1. Can be used as mailing, director, and/or registered address – the beauty of a virtual office is that it is not a PO Box and as such can be used as a registered address where official mails from governmental bodies like HMRC and Companies House can be sent.2. Prestigious citing at low cost – since there are many service providers, all advertising virtual offices in different prestigious locations within London, your company gets the advantage of being perceived as important when such an address is used on important documents. Because your company is not physically present there, you get to pay less for such prime locations.3. 24/7 access to your mails – you can access your mails from anywhere in the world at any time of the day. This is because any mail or package that comes for you is scanned unopened and sent to you via email as soon as they arrive. So, you don’t have to stress even when you are out of the country.4. Dedicated phone number and email domain – some service providers offer packages that enable your company to have a dedicated phone number and email domain which gives your company a prestigious outlook and credibility.5. Call answering and forwarding – many virtual offices come with a dedicated professional secretary who receives your official calls and forwards important ones to your personal phone number. The services providers have teams onsite at each of the addresses who handle your mails and phone calls in a professional manner.6. Pay-as-you-go office space or room for meetings – supposing you have to host a meeting, the virtual office usually has physical office space or room that is rented out when needed.7. Local presence in a country where your company is not physically located – if your company is located abroad but you are looking to extend your business into the UK, you can purchase a virtual office in London with which your company would be incorporated. The legal requirement is that the registered address of a company must be in the same country the company is registered, hence the allure of virtual office space especially if you don’t have enough budget to set up physically.8. Privacy – using a virtual office keeps your home information private and out of the public eye. This is because any address used to register with Companies House becomes automatically listed in their register and available on their website.9. Reduced overhead and avoid building maintenance costs – when you opt to use a virtual office, you automatically reduce overhead since your employees can work from anywhere. The costs of building maintenance, cleaning and repairs are also avoided.10. Can be used for a bank account – Any bank, online or physical, requires proof of residency before you can open an account with them. So, if you can have access to a document that shows that from your service provider, you can. Moreover, many banks will allow you to open an account without ever visiting a physical branch. This is done by using a remote verification process in which the bank will contact you via phone or email to verify your identity.11. Month by month payments and a choice to opt out at any time – you can opt to pay month by month especially if you don’t have enough to pay for extended time. In which case, you can opt out at any time without hassles.In conclusion, there are many reasons why a virtual office is a good idea.<blockquote>A virtual office can provide you with a professional presence in a city or location where you do not have a physical office. A virtual office can also save you money on overhead costs, such as rent, utilities, and office furniture.</blockquote>

Virtual Offices allow your business to operate from anywhere with an internet connection. Find out all the advantages for both you and your employees.

Virtual office: explanation and benefits for your business

During <a href="company-formation">company formation</a>, the directors of the new company are required to provide an address through which they can receive official correspondence from the government.This article will give you insight into the director’s service address and how you can get one.<h2>What is a director’s service address?</h2>A director’s service address is the street address of a real estate property where each individual director of a company can receive official mail from the Companies House, HMRC, the Insolvency Service, the courts, and other government agencies.<blockquote>Every director appointed before and during company formation must provide an address to the Companies House which is made public on the Companies House website.</blockquote>A director appointed after company formation or incorporation may, however, need not provide an address.<h2>What are the advantages of having a director’s service address?</h2>The most important advantage of having a service address separate from a residential address is privacy which includes:<ul><li>Hide your home address from the Internet, marketers, and the public.</li><li>Avoid having your residential address appear in the public registry.</li><li>Avoid falling prey to identity fraud.</li><li>Avoid unsolicited correspondence from marketing agencies.</li><li>Keep clients or visitors from reaching your home.</li><li>Get a prestigious London business address that will boost your professional image.</li></ul><h2>Who can use a director’s service address?</h2>The people who can use a director’s service address are the company director(s), members, subscribers, or shareholders, and PSCs (persons with significant control). Company secretaries need not be chosen at the time of company incorporation but if one was chosen, then they’ll need a service address too.<h2>Is it mandatory to have a director’s service address?</h2>It is mandatory for all directors, shareholders, members, subscribers, PSCs, and/or, secretaries appointed at the time of company incorporation in the UK to provide a service address.This may or may not be the same address as that of the company itself.<h2>What are the differences between a service address and a registered office address?</h2>A service address is an address required to be provided by all directors, shareholders, members, subscribers, PSCs, and/or, secretaries appointed at the time of company incorporation in the UK. The point of presenting such an address is for the receipt of official correspondence from governmental agencies.On the other hand, a <a href="registered-office-address">registered office address</a> is the UK address of the main office of the limited company that is intending to incorporate with the Companies House. This address, like the service address, can either be the address of the physical building or a virtual one.<h2>Can a registered office address be used as the director’s service address?</h2>The answer is yes. The main point of having a service address as a director is to maintain privacy. Therefore, using the official address of the company you are directing as your service address is a wise choice.<h2>Can a director’s service address be used as a registered office address?</h2>Yes. It is possible to use the service address of one of the directors of a company as the registered office address of the company. This address will be made public on the Companies House website and registered and also used for receiving any statutory correspondence from government agencies.<h2>Conclusion</h2>The director's service address does not have to be separate from the company’s registered office address.The only exception is if the director is not based in the UK in which case the service address would definitely be different.

The director's service address is the address where the director must also receive any formal notices served on the company.

Director’s service address: Everything you need to know

The registered office address is the official address of a company that is registered with the government. It is where all the records of a company are filed. In this article, we will cover what a registered address is, where and when you can use it and all the benefits of this kind of address.<h2>To begin with, what is a company's registered office?</h2>If you register a business with Companies House, you are legally required to have a registered office address. You may be wondering why this address is required. This is why.A company's registered office is its official address. A registered office is necessary by the Companies Act 2006 if you want to start a company in London. Companies can be served documents by having them sent to the registered office addresses.It is the incorporated company's official address, which is open to the public to view. The address does not have to be the same as your typical trading address. For companies to receive official mail and formal notices, a registered office address is essential. It is advisable to use your business address which you use to carry out your day to day activities for your VAT application, not your registered office address.<h2>Where to use the registered address?</h2>You must prominently display your company’s name and address of its registered office outside every office or place of business.<blockquote>The registered name of a company must, in general, be accessible to the public at its registered office.</blockquote>All your communications, including letters, websites, business cards, emails, and letterheads, must mention the company's registered office address. Your Registered Office is required by law to have a physical address where you can receive official communication from Companies House and HMRC.<h2>What are the advantages of having a registered office address?</h2>Here are some of the reasons why having a registered office location is beneficial to you:<ul><li>The registered office address does not have to be the location where the organization does its actual business or trade. &nbsp;</li><li>If you run a home-based business, you can register your office address somewhere else and keep your private personal address off the public record. While you will still be required to provide your home address to Companies House when registering your business and business account, this information will be kept private and off the public record. &nbsp;</li><li>Any messages received on your behalf by a registered office provider will be scanned and delivered to your nominated contact email address. If you require original copies of the documents, they will be sent to your designated postal address, with postage and handling fees determined by the size and volume of the documents or packages. &nbsp;</li><li>The use of registered office addresses might also help you project a more professional image to your consumers or clients. Companies can obtain a prestigious London business address in the London business district by employing London-based business address services. Because of the combination of your incorporated status and prestigious London business address, your Limited Company will immediately make a very professional first impression and appear to be a more credible outfit to deal with. &nbsp;</li><li>Virtual registered office addresses are inexpensive to obtain and have frequently included additional features such as meeting room access and mail forwarding. To keep their residential address hidden, many people opt for a virtual registered office membership.</li></ul><h2>How to change a registered office address?</h2>It's simple and quick to change your registered office address, and you may do it online. Changes to your registered office address are free, but you'll need your email address and authentication code.<blockquote>You must notify Companies House within 14 days after altering your registered office address, and to do so, you must complete and return Companies House form AD01.</blockquote>Your company number and name, as well as your new registered office address and signature, will be required. Once your new address is considered eligible, the change will be accepted.You won't be able to modify your address until it's registered with Companies House. Remember to update your address on your website, order forms, receipts, and business cards.

Most businesses need a registered office, whether for legal or practical reasons. A registered office is the address where a company receives correspondence from HMRC and Companies House and where it can be contacted. 

Registered office address: definition and why do businesses need one

Discover everything about banking basics, finance and administration to make better decisions.

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Bank

Everything you need to know about Bank

Let's start at the beginning and view some critical details concerning the entire process of starting and managing your money.<h2>What is an online bank account?</h2>An online bank is a financial bank that operates exclusively over the Internet.Online banking is a term that refers to the process of managing your bank accounts via use of a computer or a mobile device app. This includes electronic financial transfers, check deposits, and bill payment. The difference between this and a regular bank account is that you will not see a banker face to face; nevertheless, you may access your account at any time using a mobile device app or computer.<h2>What are the documents needed to open a bank account?</h2>While each bank has its own set of restrictions, all banks will ask you to demonstrate that you are who you claim you are. You will frequently be asked for :<ul><li>A passport, national identification card, or driver's license frequently suffices as proof of identity.</li><li>Proof of address: While not all banks demand this, some do — for example, with a utility bill or lease agreement.</li></ul><h2>How to sign up to an online bank?</h2>The process takes around ten minutes, during which you must complete a registration form and upload supporting papers (ID, income, address) on the website of your preferred bank.Within a few days, an adviser will check your file and, if it fits the bank's standards, you will be set up with a new current account (you may be required to pay a one-time fee in return) and will get your linked bank card by mail.<h2>What are the advantages of an online bank?</h2>Due to the fact that online banks do not have to invest in branch upkeep, their fees are often modest or non-existent. Numerous online accounts, for example, waive monthly service costs and some waive overdraft fees as well.You can have arranged overdrafts. An arranged overdraft has a pre-determined limit and interest rate that you and your banking provider agree on. If you have arranged overdrafts, you may borrow up to the amount permitted. You can check if you have an existing overdraft on your account in online banks If you go over your arranged overdraft limit, you'll enter an unarranged overdraft.If you are not eligible for an arranged overdraft, you may be able to get an unarranged overdraft. This occurs when there is money in your account to cover a payment yet your bank permits the payment to proceed. If you use an unarranged overdraft, this may negatively impact your credit file. You should read the overdraft information before applying for an online account.<blockquote>Better interest rates : Deposit accounts at online banks often provide greater annual percentage returns.</blockquote>Most providers allow free opening of new accounts and also offer free debit cards.Security: Online banks that adhere to industry standards of security are just as safe as traditional banks. Consider features like encryption and fraud detection, and before you open a bank account, confirm that the funds are guaranteed by the Federal Deposit Insurance Corporation. If you misplaced your debit card, you can lock (and unlock) it from your mobile app.Access: You may access your bank accounts and bank services from anywhere there is an internet connection – on your computer or mobile device — 24 hours a day. Customer service is also available by phone - in certain situations, 24 hours a day, seven days a week.Manage your daily finances easily from anywhere, online, on your mobile, or via phone. Online Banking simplifies the process of checking your balance, paying bills, and sending money to family and friends, as well as providing expenditure insights and configurable security restrictions.Online bank accounts have made wanting to save enticing with their competitive interest rates. The option to save with an online account guarantees higher returns. This is of great help to people with variable income.Bank statements are easily accessible through email and usually come in pdf format, statements are usually sent every month.<h2>What services do online banks generally offer?</h2>As noted Online banks let you carry out transactions over the internet through your mobile, you can also get free checking, which is a checking account without the monthly maintenance fees.<blockquote>Online banking provides customers with nearly all of the payments accessible at a traditional bank, including deposits, transfers, and online bill payment.</blockquote>At the absolute least, you will always have access to a current account and an accompanying credit card, which may be Visa or MasterCard, depending on the bank.Additional services frequently included are life insurance, savings plans, consumer and real estate loans, the latter of which varies per bank.For different online banks, Annual Percentage Yields (APY) of all products are variable.You can download bank statements from your email which are usually sent every month in pdf formats. You can check or view your account savings and financials using their app including tracking your statement. You can even get the option of bank account balance check using text messaging.Along with a competitive, variable rate and no monthly maintenance fees, the online Bank Savings Account can arrange for you to grow your money. Banks with maintenance fees often offer more than one condition, one of which you may be able to satisfy, to waive the fee or fees.You can deposit checks through the mobile app and open multiple accounts in minutes, you can get a competitive rate with no opening deposit including minimum account balance, or monthly charges.<h2>Conclusion</h2>Switching from a traditional bank to an online checking account offers a number of advantages and disadvantages.&nbsp;The advantages include better rates, fewer fees, and cutting-edge tools that aid with account management and budgeting.&nbsp;The disadvantages include more difficult access to customer service and worries about online security. While online banks typically provide higher interest rates on deposits and lower interest rates on loans, they may not offer the complete range of services offered by traditional brick-and-mortar banks.&nbsp;For some online banks, if you don't have a checking account, you may have limited access to your account since the savings account doesn't include a debit card. Finally, you must determine what is best for you.Results of surveys post-COVID indicate that most people now opt to use online banking.

You want to open a new bank account but are unsure how to proceed. Here, we will help you learn more about online banking and why it's frequently more convenient, affordable, and secure to use than in-person banking.

Online bank account: everything you need to know

A bank transfer beats writing a check. If the recipient does not live in the same country as you, writing a check becomes more cumbersome because first, you will need to mail the person the check before they can cash it. Depending on the country’s rules on intercountry check cashing, that could also take another long process and time before the person can eventually access the money.Bank transfer however bridges that gap because you can easily get the money directly into the person’s account.&nbsp;In this article, we will be talking about the intricacies of bank transfer and its advantages.<h2>What is a bank transfer?</h2>Bank transfer is therefore the process of electronically transferring money into someone else’s bank account. It could be an account of the same bank as you or a different one. Transferring to an account of a bank different from yours may attract processing or third-party charges but these are usually small and mostly negligible.<h2>How does a bank transfer work?</h2>You can either go into the banking hall to do the transaction with the help of a bank teller or you do it via the bank’s website or app. Indeed, some amounts of money cannot be transferred using apps or websites. They need to be done in person.Also, transfer methods differ from bank to bank and country to country. Therefore, you will need to understand the requirements necessary to do a bank transfer through your bank, within your country, and or in the country you want to transfer to (if you are transferring to another country).<h2>What are the documents necessary to make a bank transfer?</h2>Whether you are sending the money via online transfer or through the bank physically, you will need to know<ul><li>The recipient’s 8-digit account number,</li><li>The bank name and 6-digit branch sort code,</li><li>The full name of the recipient or business name,</li><li>The amount you want to send,</li><li>Your own reference (your name or business name just so the person knows who is paying money into their account), and</li><li>Whether you’d like to do an instant transfer or not.</li></ul>For security reasons, some money transfer platforms will require more details about you and the recipient. Some of those details could include<ul><li>Email address</li><li>A government-issued ID card</li><li>Purpose of sending, etc.</li></ul><h2>What are the factors to consider for money transfers online?</h2><ul><li>Platform security and reliability – you need to make sure the platform you want to use for the transfer is secure. You can check customers’ ratings to know the effectiveness of their services. Also, check to be sure the agency providing such a platform is licensed by the government. It does not matter how low the charges they are offering, if they are not licensed, they are not authentic for use. Beware. &nbsp;</li><li>Speed of customer services – the rate at which a platform responds to its customer’s complaints and the efficiency in resolving such matters is important. You can know this beforehand by&nbsp; &nbsp;</li><li>Charges involved – there are two types of bank transfers and each comes with sending charges namely wire transfer and exchange rate. It is important that you know the intricacies of each to avoid unnecessary spending on your transfers. <ul><li>Wire transfer – banks will charge a wire transfer fee each time you send money into or out of the UK. Each bank differs in the amount they charge.</li><li>Exchange rates – this is usually between 3 to 4 % of the amount you want to send. What it means is that the higher the money you want to send, the higher the charges.</li></ul></li></ul><blockquote>You can easily work around these charges by using a money transfer platform that will charge less or not at all. All in all, you need to do your research well before choosing a platform to use.</blockquote>Also, you need to know that even these platforms may charge hidden fees or higher fees depending on the country you are sending to. You should know this before choosing them.<ul><li>Ease of use – what you are trying to do is avoid unnecessary hassle. So, you should check out the ease of sending and receiving on such a platform before choosing it.</li><li>Correct beneficiary details – as said earlier, money transfer platforms and banks will request the details of the recipient. It is therefore important that you get the details right to avoid unnecessary hassles.</li></ul>Bank transfer has become easier over the years and there are a lot of legitimate platforms that offer good rates for transfer. You only need to know what it entails so that you can maximize its use.

Bank transfer is an efficient method of sending money into another person’s account with ease and speed. Learn in this article how does a bank transfer works.

Bank transfer: what you need to know

<h2>Investment tips</h2>If you are thinking about becoming a <a href="https://www.helloprimo.com/en-GB/articles/sole-trader">sole trader</a> or you want to <a href="https://www.helloprimo.com/en-GB/articles/company-formation">set up a company</a>, we have a few tips that will help you succeed in your investment voyage:<ol><li>Establish a plan and stick to it. Don’t just make a plan. Stay on it! The easiest mistake to make as a first-time investor is to derail from your original plans. You should know what your investment targets are, who you are investing with, and the amount you are investing in. The worst disservice you can do yourself is inconsistency. Don’t just buy shares from a company you have not done your due diligence on, no matter how attractive the dividend may seem. &nbsp;</li><li>Invest as soon as you can. Waiting for the right time to invest may just mean you would never start at all. There is no right time to invest. You could be waiting to invest in a shares or stock when there is a drop in market value thinking the price will shoot up again, only to find out that stock is done for good! Also, the earlier you invest, the sooner your money can begin to grow. The bottom line is, don’t wait. Invest as soon as possible. Most times, you should follow the market trends to better understand your investing options. &nbsp;</li><li>Invest, no matter how small you think you have. Think about it – investing £50 a month will be £600 in a year and with the right interest rates, you could have more. You do not have to wait till you have a lot of capital or income to invest. &nbsp;</li><li>Understand investing risk. Sometimes, investing wisely just needs you to have the guts to take risks. You should also understand that the best investors are the ones who take risks. Not every investment will pan out the way you want. Inflation can set and you loose out on a deal. But you must be able to invest in such a way that you are not wrecked in one deal. &nbsp;</li><li>Diversify your investments. One important rule that guides investors is diversification. Have you heard of the term ‘not putting your eggs in one basket’? That also applies to investments. Diversify. Never put all your money in one portfolio so that you don’t take unnecessary risks with just one huge investment. You can invest in a startup company, buy stocks, shares, assets, etc. &nbsp;</li><li>Be tax efficient. Know what your tax duties are and ask for tax relief when they apply to you. You may need to seek the help of a tax or financial accountant for this. Manage your tax filing effectively. &nbsp;</li><li>Think about your pension. While investing, make sure you have something to fall back on in case you take risks that don’t pan out the way you want. In other words, don’t take unnecessary risks by investing all you have. Think of it as an investment buffer; as though you are saving for the rainy day! &nbsp;</li><li>Never borrow to invest. What if the investment fails? How then do you pay what you owe? Only invest what you have. Just because you think it could be a huge deal and investing large amounts will bring you a great fortune does not necessitate borrowing. Don’t be greedy! &nbsp;</li><li>Seek investment advice. There are investment brokers or advisers all over that can give your advice on the best portfolio to invest in at any time. Except you are a financial guru, this should be one of the first things you do anyway. Get an investment adviser and follow the advice given diligently. Otherwise, you can also seek the advice of someone who has been in the investing business longer than you. In fact, get more than one adviser. This way, you compare and contrast opinions before you take the plunge into any investment you are wanting to take. Learn from their highs and pitfalls.</li></ol><h2>Conclusion</h2>Investing is a risky venture. You should know your risk level before venturing into it. This will help you make a wise choice on where to invest and how much to invest per time.

The world of investments can be daunting for first-timers. Usually, understanding the financial or accounting jargon of investment can be overwhelming. 
Luckily, if you are looking to delve into the world of investments, you have come to the right place. Let’s dig in.

9 investment tips for beginners

Find out everything about accountancy, the fundamentals, law, taxation, and human resources.

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Accountancy

Everything you need to know about Accountancy

Accounting services have professionals that can provide support to small businesses that are just starting out to make the right investments and structure their businesses in a way that ensures financial stability on a monthly or annual basis. With such important decisions that can start business owners off on the right foot, it’s crucial that businesses know the best accounting services that are available for businesses to contact.<h2>The types of accounting services</h2>Accountants can help their clients in a variety of ways. While there are different types of accounting services, the four main accounting services are:<h4>1. Public accounting</h4>Public accounting provides the most comprehensive service where the accountants specialise in bookkeeping, analysing finances, and account management. The accountants create accounting software, identify financial errors, compensate employees, and prepare tax forms on time so businesses are compliant with HMRC. They also make sure that businesses are paying the right amount of VAT, that they are registered appropriately with HMRC, and that their accounts are up to date.<h4>2. Management accounting</h4>Accountants record and analyse a business’s financial accounts, and use that analysis to support businesses in managing costs and assets, as well as budgeting and evaluating the business’s performance. They also help people who are self-employed keep track of their accounts so they have all the information they need to grow their personal business.&nbsp;<blockquote>Accountants can also help people who are self-employed to make decisions about getting registered and making sure that they are paying the appropriate amount of VAT.</blockquote><h4>3. Government accounting</h4>Government entities also need accounting services. A government accountant ensures that all the revenue and government spending are within the legal guidelines.&nbsp;Accountants are also providing support to the government to manage its assets, and creating and maintaining a budget.&nbsp;Government accountants can also provide advice about the different ways that the government can budget it’s accounts.<h4>4. Internal auditing</h4>Auditors are accountants that check the inner workings of a business. This includes things like fraud, management, and financial waste in business accounts. Accountants who are auditors make sure that the business is following HMRC rules and regulations, and paying the appropriate amount of VAT. The auditor accountant can specialise in any auditing field, like environmental auditing, compliance auditing, and technology auditing.Different businesses need different types of accountants, and different accountants will specialise in different areas to help businesses keep their accounts accurate. Now that we know the different types of accountancy, let’s talk about why a business might need an accounting service.<h2>5 reasons why businesses need an accountant</h2><ul><li>Structuring businesses for the best</li></ul>One of the first few things to think about when starting a business is if it needs to be registered. Being registered means to register with HMRC as incorporated (also known as Inc.), a limited liability company (also known as an LLC), and so on.&nbsp;But while we might think we know best for ourselves and our business, there are expert professional accountants who specialise in these areas and can advise and support you on the best way to structure your business so it’s as profitable and efficient as it can be.<ul><li>Analysing finances</li></ul>By being able to analyse your financial accounts, you can learn much more about your business. As a business owner, you can find out where you’re losing money, where you’re most profitable, and focus on these areas to help grow your business without wasting time on trying to figure it all out for yourself. An accountant can support you in creating a business plan and carrying out a financial analysis to assess how well your business is sticking to that plan.By investing your time and money in getting your accounts together by a professional accountant, the accounting services you use can also save you time in the long run.<ul><li>Software advice</li></ul>Any business needs an accounting software to assess how well their business is doing, to pay their team, and provide any other necessary reports on their account. But without the support of an expert professional accountant, you might make a mistake in selecting the software simply because it is free—or worse, you might end up purchasing a fake one.&nbsp;<blockquote>Accountants can help you sift through the software out there and support you in choosing the best one for your business as part of an accounting services package.</blockquote><ul><li>Expense tracking</li></ul>As with any budget, tracking your expenses is crucial to understanding your business and clients’ needs. Without understanding how much money is coming into the business and how much the business is spending on a monthly or annual basis, it’s hard to get an accurate picture of the health of the business.&nbsp;An accountant can help you and provide advice about how to keep track of your transactions and keep an accurate record of your expenses so you always know where your business stands.<ul><li>Taxes</li></ul>We need to pay taxes annually and make sure that we are following the rules and regulations outlined by HMRC. This also goes for any business that needs to prepare tax returns.&nbsp;<blockquote>By hiring an accountant, you can rest assured that an expert accountant is taking care of your finances according to the law. They can make sure that your business is paying the appropriate amount of VAT, as well as give advice on getting registered.</blockquote>As we can see, hiring an accountant helps a business in assessing their financial accounts, bookkeeping, and getting the right business structure and registration. Accounting services can differ depending on the type of business, the management style, and experience of the business.You can also seek out a professional expert in the field of accounting that you’re looking for, like a chartered accountant, forensic accountant, or an auditor. It’s important to know your business needs to hire the right type of accounting service in order for them to really be able to help you.It’s also important to remember that accounting services have to follow the rules and regulations of the company and the state., which means you can rest assured that you will be HMRC compliant and pay the right amount of VAT.

Small and large businesses need accounting services to keep their accounts on track. The accounting services can help with bookkeeping, financial development, payroll, and any business expenses. This article will help you to understand the benefits of accounting services for your business.

Accounting Services: What you need to know

Accountants are usually thought of as the people who just work on their calculators and are obsessed with numbers and data. While this career might seem pretty straightforward, and possibly boring, accountants are an important part of the team that helps with any financial business problem that stops it from functioning.An accountant’s job can vary based on the type of accountant they are, the different roles and responsibilities they have, and the different skills they bring to the table. In this article, we’ll discuss all of these things, so you can decide if becoming an accountant is right for you!<h2>Who is an accountant?</h2>An accountant is responsible for maintaining and understanding financial records and accounts of any business or individual. They are professionals who are responsible for a variety of financial tasks and give advice to individual clients, or small and large businesses who employ them. Accountants can be certified as a CPA, also known as Certified Public Accountants; work for a company to help with financial management, or work for a firm as an auditor or to help other companies on a case-by-case basis.<h2>What do accountants do?</h2>Keep in mind that there are different types of accountants, and accountants provide different types of services based on the needs of the individual or business that they are working for. So, the daily duties of an accountant will vary depending on their position, the company or firm they are working for, and so on. But some of the most common responsibilities and duties accountants have are:<ul><li>Creating and maintaining financial reports</li><li>Preparing tax returns according to legal standards to ensure businesses are following rules and regulations, as well as paying taxes properly and on time.</li><li>Ensuring that financial statements are accurate and that they are up to the standards set by relevant rules and regulations</li><li>Identifying business issues and problem solving, auditing financial operations to recommend best-practice solutions, and help companies run properly</li><li>Offering advice on reducing cost, enhancing revenue, and maximising profits</li><li>Conducting a risk analysis assessment to predict any risk to the business</li></ul>Accountants also have the responsibility to act honestly and avoid any bad practices. This also means that accountants are responsible for making sure that their client’s financial statements are up to the standards of the rules and regulations.<h2>What skills does an accountant need?</h2>Because of the variety of services an accountant can help with, an accountant will need a variety of skills and experience in order to be successful. The most important skills accountants need is:<h4>1. Understanding businesses</h4>Because of the different businesses' accountants help with, it’s important for an accountant to understand the basic functions of a business in order to fully analyse and interpret financial data. With a solid foundation of business understanding, an accountant can have the context to the financial statements that they are working with on a daily basis. Accountants can also give advice based on best practice solutions when they fully understand the basic functions of a business or company.<h4>2. Be detail-oriented</h4>Because of all the large financial data accountants work with, it’s important for them to be able to pay strong attention to detail so the information is kept accurate and organised. If errors aren’t caught, simple mistakes can lead to much larger problems later on. This can also come with gaining more experience in an accountant’s career.<h4>3. Be technologically savvy</h4>Accountants use accounting software and computer-based tools every day to maintain financial data and stick to best-practice solutions. So, it’s important that professional accountants are able to use these tools easily and effectively.<h4>4. Be able to analyse financial data</h4>A large part of accounting is collecting and analysing financial data. The data can be used to identify patterns and even potential issues, which makes it an important aspect of the job so accountants can help businesses better. Data analytics in the accounting field is an emerging trend in the industry, and is expected to become an even more important skill to have in the future.<h4>5. Communicate effectively</h4>Due to all the needs of a business, an accountant must be able to listen to clients, managers, and various stakeholders to accurately gather facts and figures. They then need to be able to clearly explain the results of their work and communicate their findings in written reports. Again, this can and will come with years of experience of working as an accountant.<h4>6. Be able to do basic maths</h4>It’s easy to think that accountants need to be really good at maths. While maths is an important skill to have to analyse, compare, and understand financial data and figures, complex maths skills are not necessary to get into the accounting field.There’s a lot of misconceptions about being an accountant, but as we can see, accounting is much more than financial data. With the growing need for accountants, there are plenty of opportunities in the field to start a successful accounting career at the entry-level. If you’re interested in becoming an accountant, the next steps will be to look into the qualifications that you need, the right institute to attend, and any training you might need to support your career.

An accountant is a professional who provides financial and tax services to individuals and businesses. Let's discover together what an accountant does, how to become an accountant and the different types of accounting.

Accountants: Who are they and what do they do?

The career as an <a href="what-is-an-accountant">accountant</a> is not only lucrative but also in high demand for some years. If you decide not to work for an organisation, as an accountant, you can set up as a freelancer and take on individuals and companies as clients. Either way you choose to go, you can never go wrong.If you are thinking of <a href="how-to-start-a-business">starting a career</a> in accountancy, this article is the right guide to help you through the process.<h2>So, what do accountants do?</h2>Accountants analyse and interpret financial information in an organized and precise manner to help company directors make informed decisions to maximize profits. When an accountant does his job well, the financial health of a company becomes understandable and he can then provide advice to the management to help make strategic and informed decisions.An accountant can be tasked with budgeting, procurement, financial advice, forecasting, risk analysis, and reporting, tax advice, auditing, and ensuring compliance of financial statements with company and government laws and regulations.<h2>Types of accountants</h2>There are many types of accountants depending on the duties they perform and the certifications they hold. Here are a few of the important ones and their duties.<ul><li>Certified public accountants (CPAs) – A CPA in the UK is an accountant certified by the Certified Public Accountants Association (CPAA). The CPAA issues two types of certifications. To become an Associate Certified Public Accountant (ACPA), the accountant must either be a member of a CPAA-approved organisation, have obtained CPAA-approved qualifications and experiences, or be QBE (Qualified By Experience). Becoming an FCPA (Fellow Certified Public Accountant) requires an equivalent chartered certification from another approved organisation or relevant years of experience.</li></ul>CPAs have varying duties ranging from auditing and review to tax preparation and consulting, financial planning, and litigation consulting. The career path of a CPA has a wide range, from public accounting to corporate accounting, and government services, and may even rise to an executive position in a company such as CFO (Chief Financial Officer) or Controller.<ul><li>Auditors – Auditors must generally hold an ACA (Associate Chartered Accountant) or FCA (Fellow Chartered Accountant) certifications from ICAEW (Institute of Chartered Accountants in England and Wales) and also be a CPA. These certification awarding bodies (ICAEW and CPAA) teaches accountants courses that address the different types of auditing (internal and external), thus preparing candidates for a possible career in auditing.</li></ul>Internal and external auditing duties are similar which include preparation of financial statements as well as providing advice on tax and treasury issues, approval procedures, employee financial responsibilities, and management policies. They also prepare and examine financial records to identify opportunities or risks that could impact a company's efficiency and profits. External auditing however reviews internal financial statements, provides feedback and ensures that the company’s financial statements are in accordance with the relevant laws.<ul><li>Government accountant – government accountants in the UK are certified as chartered public finance accountants (CPFA) which are awarded by the CIPFA (Chartered Institute of Public Finance and Accountancy). Government accountants manage the use of the taxpayer revenues, perform financial performance and compliance audits, investigate frauds, and recommend helpful actions at all levels of government in the UK. Government accountants have the important duty of managing the use of federal, state, and local taxpayer dollars. Government accountants ensure that governmental bodies are transparent, efficient, ethical, and responsible in their use of funds. &nbsp;</li><li>Financial accountant – a financial accountant typically manages a team of accountants who prepare a company’s financial statements and reports, and thereafter provide financial advice to the management, shareholders, or investors (potential or existing). &nbsp;</li><li>Management accountant – a management accountant does all the work of a financial accountant but his/her information and advice go to the company management only, and never to any external body or person. A management accountant would most likely be chartered or CPA certified since this role is synonymous with CFO or Controller. &nbsp;</li><li>Cost accountant – cost accounting is a subdivision of managerial accounting. A cost accountant helps the company analyse and determine the actual costs of goods and product manufacturing such that profits can be maximised while limiting wastage. There is no specific certification required for a cost accountant, however, being a CPA might be an added advantage to demonstrating knowledge in the field. &nbsp;</li><li>Staff accountant – this is a mid-level accountancy position and may be regarded as entry-level in some accounting firms. While a staff accountant is not required to be CPA certified, he/she must have a bachelor’s degree in banking, finance, accountancy, or any other related field. Since a staff accountant is generally considered a mid-level position, it goes to say that such a person would have more experience and certifications than the entry-level accountant. Also, in terms of duties, a staff accountant may be upgraded from balance sheets, budgeting, and expense tracking, to more advanced duties like assisting the senior accountant with budget expansions or planning for large purchases. &nbsp;</li><li>Forensic accountant – this accountant is tasked with investigating large and complex financial data of an institution or company. These accountants usually come into play when there is an issue of fraud, misappropriation of funds, embezzlement, or insurance claims. They simply ensure the amounts of money and assets are where they are said to be. &nbsp;</li><li>Tax accountant – as the name implies, a tax accountant helps the company to organize its financial statements for proper and legally compliant tax filing. He also provides advice to help the company legally reduce tax spending, and keep up-to-date with tax legislation.</li></ul><h2>What does an accountant do daily?</h2>Budgeting – an accountant uses past budgets and expenses of the company or organisation to propose an adequate budget for a period of time which may be quarterly or yearly. A good budget ensures all bills are paid including the salaries of employees.Procurement – this entails ensuring payments are made for any goods or properties being purchased by the company. An accountant has to make sure that all ducks are in a row where the company purchases are concerned, that is, he/she ensures that the prices negotiated are reasonable and that the goods are in perfect conditions at the point of purchase. The accountant can seek expert opinions especially when technical know-how is important to ensure the functionality of pieces of equipment.Financial advice – the accountant gives financial advice to the management to ensure that they maximize profits while reducing overhead costs.Forecasting – to make good budgets, an accountant must be adept at understanding the cash flow of the company. This way, he/she would be able to make forecasts and advice the company management accordingly.Risk analysis and reporting – this process is also important. The accountant has to identify points at which the company could run into financial loss and report back to the management on his/her findings.Tax advise – tax evasion does not necessarily mean evading tax in its entirety but leaving out important details of the company’s finances of which the government would have taxed them. Therefore, it is the duty of the company accountant to ensure that there is proper documentation of the company’s finances such that taxes are remitted duly. The accountant also looks for ways to reduce the total tax paid, in line with the law. A good understanding of tax laws, which should be regularly updated, is very important for this.Auditing – the accountant also ensures that there are no discrepancies in the company’s financial records. He/she ensures that every dime is where it is said to be.Ensuring compliance – the accountant ensures the compliance of the company’s financial statements with company and government laws and regulations.<h2>How to become an accountant?</h2><ol><li>Obtain a bachelor’s degree – while this may seem unimportant since the AAT certification could be equivalent to a bachelor’s degree, holding a BSc certification is usually an added advantage to land lucrative roles in some companies. A bachelor’s degree in financial accounting, mathematics, or any other related field is always a plus on the route to being a successful accountant. &nbsp;</li><li>Consider pursuing continuing education – if you did not have a BSc, continuing education may be your best alternative. Some levels of continuing education are equivalent to a part or full BSc. Some of those include diplomas like HNC, HND, CertHE or CertCE, DipHE, or post-graduate studies. Although these tend to be more academic than practical, they still give you a competing advantage when applying for an accounting role &nbsp;</li><li>Choose a specialty – there are many areas of accounting from which you can choose. It is important to know that you do not have to be a Jack of all trades in accounting. Choose a specialty and develop yourself in it. This could even be of advantage if you decide to set up as a sole trader or freelancer. &nbsp;</li><li>Get an internship or entry-level position – training is important on the road to being a successful accountant. This step also ensures you get certified as chartered or even as a CPA. &nbsp;</li><li>Determine whether you will be an accountant or a CPA – not every accountant is a CPA. You can choose which role you want and how you want to go about it. Becoming a CPA involves passing some higher-level exams and gaining some required years of experience. &nbsp;</li><li>Pass all required exams – depending on the certification you are aiming for, make sure to prepare well and pass all required exams to qualify.</li></ol><h2>Conclusion</h2>Being an accountant is one of the most fulfilling jobs in the world and you get paid handsomely for doing it. So, if you want an accounting career, it is never too late to start.

Every career sector needs an accountant for one thing or the other ranging from tax accounting to forensic auditing. Even religious organisations and social clubs sometimes seek the professional expertise of accountants or even keep one or more as an employee. No matter the industry or size of an organisation, there is always a need for an accountant, no matter the number.

How to become an accountant: your complete guide

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In this article, you are going to be learning about the meaning of entrepreneurs, how it is different from the <a href="sole-trader">sole proprietorship</a>, the types of entrepreneurs and many more.&nbsp;Enjoy your reading.<h2>Who is an entrepreneur?</h2>An entrepreneur by definition is a person who <a href="how-to-start-a-business">starts a business</a>, either on his own or in conjunction with other people, and is responsible for risk bearing and reward taking from such an endeavour. Undertaking an entrepreneurial endeavour therefore is to take on the role of a leader towards a desired goal.&nbsp;Do you know that as an entrepreneur, you get to make your own rules? That’s right. As an entrepreneur, you do not have to abide by any set of rules except the ones you set or lay down by yourself. That is one of the beauties of being an entrepreneur in this present age.As a matter of fact, entrepreneurs set the pace and drive the economy of the world. It might also interest you to know that governments all over the world take economic decisions based on established entrepreneurs in their countries. They want the economic policies to favour their decisions so that the taxes imposed will keep coming. That may seem prejudiced but it is the way of the world and how things work.&nbsp;Think about the old money in the UK and US. All those people started out as entrepreneurs; delving into innovative things people could only imagine and making generational wealth out of it.<h2>Types of entrepreneurs</h2>There are about 4 types of entrepreneurs and we will give a brief description of each in this article. It is worth noting here that these types of entrepreneurs are not strict in the sense that one person has to be one type. Much like the different types of human characters, one entrepreneur can be a combination of two or more of the types.<ol><li>Innovator</li></ol>Innovators care more about using their ideas to change people’s way of life. The businesses these types of entrepreneurs establish is such that it is geared towards making life easier for people around them. As such, they are more goal-oriented and less business savvy.&nbsp;Their management skill is minimal. They don’t do well as administrators; hence, they hire other people to run that aspect of the business while they focus on innovations.<ol><li>Builder</li></ol>The builder entrepreneur does not mind starting small but he’s going to set the business up in such a way that it can quickly scale up in no time. These are the type of people who start from their garage or basement and then build a large corporation after a short while.&nbsp;Builders would not mind doing anything and going all out to get funding for their business and get the best heads to work with them too.<ol><li>Opportunist</li></ol>These are impulsive by nature. They are adept at sniffing out businesses that will do well, investing and building them, then selling out when the business is at its peak. After that, they go in search of newer endeavours. Because of their impulsive nature, they are willing to take any type of risk, so far they know that it could pay off big time if they took such a risk.<ol><li>Specialist</li></ol>These types of entrepreneurs are more methodical in nature. They don’t take risks unnecessarily like the opportunist, go all out to seek funding like the builder, or bring up new concepts like the innovators. They rather learn a skill set through education and training and then find a niche where they can practice their trade. Most of their clients are from referrals and they, therefore, do not experience any gigantic leap in their income for a long while.Another important trait of specialist entrepreneurs is that they are researchers. What do we mean by that? They do adequate research before taking the step to set up as entrepreneurs. In other words, they set out knowing the pros and cons of the endeavour before taking the right steps.&nbsp;Impulsiveness is not in their nature. Doing market research for the product or service they want to render comes easy to them.<h2>Skill and character requirements for entrepreneurs</h2><ol><li>Goal oriented –&nbsp;entrepreneurs are by nature goal oriented. They are focused and driven. They are not easily derailed from their goals. &nbsp;</li><li>Flexibility –&nbsp;They would not mind making tweaks and changes here and there as necessary. &nbsp;</li><li>Versatile –&nbsp;an entrepreneur adapts easily. They don’t fight technological advancements. Rather, they use it as a tool to further their goal. &nbsp;</li><li>Profit-oriented –&nbsp;nobody goes into a business to lose. Entrepreneurs have their target set on making profits and they go all out to get it. The major goal is wealth creation that transcends generations. &nbsp;</li><li>Daring –&nbsp;risk-takers. Entrepreneurs are not afraid to take risks that could turn profits. While not all risks are worth taking, they are not afraid to take them anyway; especially if the foreseen outcome will be profitable. &nbsp;</li><li>Savvy in decision making – entrepreneurs are shrewd in making decisions. They are not emotional about it. They know the right choice for their business and they take it without fear. &nbsp;</li><li>Resilient – being resilient, no matter what keeps entrepreneurs going. This is because every venture requires some sort of doggedness and perseverance to be able to see it through. Without this character, most entrepreneurs will opt out before reaching their goals. &nbsp;</li><li>Resourceful – entrepreneurs use whatever resources are at their disposal to achieve their goals. They are not deterred by a lack of resources to achieve their aims.</li></ol><h2>Financing opportunities for entrepreneurs</h2>Starting off on a new idea, especially in business, requires some capital. Entrepreneurs have to have some capital backing to start off. Some other times, they start and find means to woo investors. The following are a few ways by which entrepreneurs fund their ideas.<ol><li>Personal or family funding – this comes from personal savings or loans from family members. Monies from trust funds and inheritances also fall into this category. &nbsp;</li><li>Loans from banks, cooperative societies, or any other financial institution&nbsp;– depending on the feasibility of the business idea, you can get loans from banks. You must be armed with a good business proposal for this though. &nbsp;</li><li>Partnerships – going into partnership with one or more people who then become shareholders is a good way to raise capital for a business venture. &nbsp;</li><li>Crowdfunding&nbsp;– this can come in form of donation or taking a business public by offering an IPO (initial public offering) to get external shareholders. &nbsp;</li><li>Hedge funds&nbsp; &nbsp;</li><li>Angel investors &nbsp;</li><li>Venture capital investors.</li></ol>All of these help entrepreneurs get their businesses off the ground within a short period.

Whether you know it or you don’t, entrepreneurs shape the world and drive technological advancements. They conceive ideas and follow them through to physical manifestations. Think about Mark Zuckerberg, Elon Musk, and other people like them and you will get a better understanding of who entrepreneurs are. 

Who is an entrepreneur?

Many years ago, the term entrepreneurship was related to people who had huge ideas and a lot of money to kick start their ideas into making profits. As such, people with novel ideas or skills but no starting capital see their dreams of entrepreneurship die, even before kick-off most times.These days though, things have changed and many people can start making waves in their chosen fields without a starting capital.In this article, we will endeavour to expound on the nitty-gritty of the entrepreneurial world in present times. If you want to be a founder of your own company, you have come to the right place to get a better understanding of your prospects.<h2>What is entrepreneurship?</h2>In the past, the term entrepreneurship would have simply meant <a href="how-to-start-a-business">building a business</a> from scratch with the sole purpose of making a profit. These days though, the term has greatly changed to include startups and freelancers. As such, the world now has about 58 million entrepreneurs.<blockquote>We can therefore say in the broad sense that entrepreneurship is the act of building an idea, skill, or product in a unique way such that it solves existing problems, thereby creating a niche for yourself while maximising profits and bearing all risks.</blockquote>What does this mean in terms of the future? Well, we live in a world of constant change. The world is now more connected than ever before and with technology at our fingertips, the world has become a lot smaller than it once was. As such, we can say that entrepreneurship has never been more important than it is now.<h2>Who is an entrepreneur?</h2>Ordinarily, an entrepreneur is viewed as a sole proprietor who owns and builds his business, bears all liabilities, and also pockets all the profits from his business.However, this definition seems somewhat restrictive as startups like Microsoft, Meta, Amazon, and the likes originated from individuals. These people had ideas that changed the world. Even though they started out as sole proprietorships or partnerships, they have opted to share the liabilities of their companies by making the companies Public Limited Liability Companies.Bearing that in mind, therefore, an entrepreneur is an individual who has a novel idea from which he can create wealth, and runs with it. He can decide to do it alone or employ a team to work alongside him.<h2>Why is entrepreneurship so important?</h2><ul><li>Job creation. Entrepreneurs, through their innovative ideas, help to create job opportunities for people. While government jobs are good and probably have better job security, the truth is that the government cannot provide jobs for all. Hence, entrepreneurs or private owners help to create avenues where people can be employed, thereby reducing the rate of unemployment. &nbsp;</li><li>Bringing new ideas to the market or a change to the status quo. Entrepreneurs bring ground-breaking ideas that change the world view to the table. They are innovative and encourage their teams to be critical and advanced in their thinking too. They essentially see a need and find ways to meet those needs. Entrepreneurs are problem solvers. &nbsp;</li><li>State-of-the-art Technology. With ground-breaking ideas come innovative technologies and better, easier, and faster ways of getting things done. &nbsp;</li><li>Introducing new and better products. Computers used to be desktops until some entrepreneur decided to venture into making laptops; and then phones became handheld instead of being stationary or glued to the wall. In simple terms, entrepreneurs bring about changes that drive technology forward and revolutionise the world. &nbsp;</li><li>Increases the country’s GDP. Every business pays tax to the government and that also increases the national income through which they provide basic amenities to the citizens. Through these taxes, there is economic growth and development in the country.</li></ul><h2>Why become an entrepreneur?</h2>Becoming an entrepreneur is a choice and it’s not always easy. It takes a lot of hard work, dedication, and commitment. However, the rewards are endless if you are successful.The rewards of entrepreneurship are:<ul><li>Be your own boss. This is probably the most intriguing. You don’t have to answer to anyone but yourself. You are the don of your company and can choose to do whatever you want. &nbsp;</li><li>Enjoy flexible working hours. You can choose to work at any time you want. You set the schedule for others working with you! &nbsp;</li><li>Work from anywhere. Being an entrepreneur is a good excuse to be a digital nomad. You do not have to have an official working space.&nbsp; &nbsp;</li><li>Solve critical problems. Instead of doing minimal chores that add no value to anyone, you get to solve critical problems when you are your own boss. &nbsp;</li><li>See your ideas come to life. There’s something pleasing about seeing your ideas come to life right before your very eyes. You get to give life to your dreams and ambitions when you are an entrepreneur. &nbsp;</li><li>Change the world. Successful entrepreneurs change the status quo in their line of business and sometimes even change the world’s progression. &nbsp;</li><li>Create and increase wealth. Being an entrepreneur is a good way to be able to create and increase wealth for both personal and public benefit.</li></ul><h2>What are the disadvantages or downsides to being an entrepreneur?</h2><ul><li>Working late hours – when you are an entrepreneur, you do not have a closing time. You close when the job is done. &nbsp;</li><li>Major responsibilities – the responsibility to make major decisions rests solely on the business owner. It is your responsibility whether the business thrives or fails. &nbsp;</li><li>Risk of failure – there’s always the risk of failure for any startup. It is a known fact that 90% of startups fail.</li></ul><blockquote>Being an entrepreneur is not for everyone. It’s not easy and it takes a lot of effort, but if you are passionate about your work, you will succeed.</blockquote>There are no guarantees that you will be successful. Nevertheless, entrepreneurship gives you the opportunity to make your mark in the world. Having good entrepreneurial skills also determines how big or sustainable that mark would be. Who knows, maybe your startup stands the chance of being the next breakthrough the world is waiting for…

Entrepreneurship is the process of starting a business. The word entrepreneurship comes from the two French words entreprendre, to undertake, and enterprise which means to carry out an enterprise. In other words, entrepreneurship is an activity that involves the development of a new business and its growth into a profitable venture.

What is entrepreneurship?

<h2>Different types of entrepreneurship</h2>The type of entrepreneurship depends on the aspirations or goals set out by the entrepreneur. This is because while some are profit-oriented, others just want to be part of the greater good. Below are listed some of the types of entrepreneurship that entrepreneurs can venture into depending on their ambitions.<h4>1. Small business entrepreneurship</h4>This is probably the most widely known of the types of entrepreneurship since it involves sole proprietorship or business partnership most of the time. This entrepreneurship type is usually a local or family business with no plan for a global takeover. Freelancers, consultants, small shops like barber shops, bread ‘n’ breakfast, diners, etc. fall into this category.<h4>2. Large company entrepreneurship</h4>As the name implies, large company entrepreneurs are larger corporations or startups that rely on large venture capitals to function. Most often, the large company entrepreneurship cannot fund the company from shareholders’ buy-ins alone and thus have to be funded by financial institutions. This entrepreneurship type is usually global-oriented and not run by a single person.<blockquote>Oftentimes, small companies can grow into large ones if they have rapid growth or otherwise get taken over or bought by larger corporations. Large company entrepreneurship can also choose to be a <a href="what-is-a-public-limited-company">public limited company</a> or <a href="private-limited-company">private limited company</a>.&nbsp;</blockquote>Choosing to be a public company means they want to raise capital through IPO while the completely private ones raise shares through venture capital, shareholders, or financial institutions.<h4>3. Scalable startup entrepreneurship</h4>This starts out as small business entrepreneurship with the exception that the originators have a mindset for scaling up. Examples of such are Facebook and Uber. They are mostly tech-based businesses that seek to revolutionize the world through technology. The main target is to grow rapidly while making the most profits.<h4>4. Social entrepreneurship</h4>A good example of this type of entrepreneurship is non-profits and charities. The aim is to solve social needs and help society become better. From providing affordable shelters to helping widows gain employable skills, social entrepreneurship is not profit oriented. They are usually funded by members, donations, or grants.<h4>5. Innovative entrepreneurship</h4>Innovative entrepreneurship is always coming up with new and dynamic innovations to solve world problems. Whether they are scalable startups or large corporations, they are always coming up with new inventions and ideas.<h4>6. Hustler entrepreneurship</h4>These start small and hope for a brighter future for their business. It is from this type of entrepreneurship that you get cold calls and emails that promote and sell their ideas to potential customers. They are willing to go to any length to see that their dreams are achieved.<h4>7. Imitator entrepreneurship</h4>The imitator entrepreneurship does not rely on their own startup idea. Rather, they see other people’s ideas, postulate ways to make them better, and then use that as a basis to start their own business. Amazon was one of the first online shopping businesses throughout the world but now has competitors like Ali Express, etc.<h4>8. Researcher entrepreneurship</h4>The researcher entrepreneurship takes time to plan and map out details of what the business will look like. The entrepreneur makes adequate research and plans ahead of time, making sure that all ducks are in a row. Before venturing out, a solid business plan is in place and if there is any reason to deviate, researcher entrepreneurship will still make research before making those changes.<h4>9. Buyer entrepreneurship</h4>These are the ones that do business takeovers. They look at startups and small business with potential and buys them over. After the buying, they make structural changes, nurse the business to full capacity and then sell it to move on to other takeovers.<h4>Conclusion</h4>Depending on your goals, motivations, and aspirations, the type of entrepreneurship you choose must be able to solve a problem in your locality or the globe at large. There is also a need for perseverance to see your business become successful.

When you hear the word entrepreneurship, it is not far-fetched for one to think of sole proprietorship. However, being an entrepreneur goes beyond being a sole owner of a small or medium-scale business. Want to find out more? Keep reading.