I. 5 Finance

Start-up businesses will benefit from putting finance procedures in place early. This is a checklist of what might need to be considered. Further information can be found in Section E Financial.

I.5.1 General

  • Set up cost centres for income and expenditure in different areas
  • Register for Corporation Tax
  • Consider need for VAT registration
  • Create a subordinated Loan Agreement, if lender involved
  • Create an expenses process flow
  • Create an own insurance process flow
  • Create cash process flow
  • Create client money process flow
  • Create payroll process flow
  • Create month-end process flow
  • Create annual finance process

I.5.2 Accounting Software System

  • Select and appropriate system
  • Set up system training
  • Create invoice templates (to inc. bank details & VAT No.)
  • Create account statement templates (to inc. bank details)
  • Enter bank details in the system
  • Cashbook set up
  • System testing (raising invoices/credits, bank reconciliations)
  • Client money processes / system set-up
  • Training, development, qualification and Continuing Professional Development policies
  • Data back-ups

I.5.3 Banking

  • New accounts to set up – company, office and client
  • Mandate rules and signatories set up
  • Credit Card facilities and authorised users agreed
  • Confirmation from bank that client monies will not be grouped with any other accounts
  • Confirmation from bank that interest/charges relating to the client account will be applied to a non-client account
  • Necessary bank stationery

I.5.4 Payroll

  • Register for Pay as You Earn (PAYE)
  • PAYE Settlement Agreement (PSA) may be needed (see https://www.gov.uk/paye-settlement-agreements for up to date information)
  • Decide benefits to be payable to employees (PMI, company car, pension etc.)
  • Provide HR/payroll provider with new starter details
  • Monthly payroll submissions
  • Year-end payroll submissions
  • P11Ds
  • Secure storage of payroll/HR data

 

I.5.5 Client Money (See Section E Finance)

  • Daily checks in place
  • Audits of client money
  • Daily processing in place
  • Reconciliation templates set up