What We’d Do If We Were Starting a Business from Scratch (As Accountants)

Let’s imagine we had to start all over again.

No team.

No income.

Just an idea and the motivation to make it work.

What would we actually do to get the setup right from day one?

Here’s exactly how we’d approach it — based on helping 1,000+ business owners and learning what works (and what creates headaches down the line).

No fluff.

No theory.

Just what we’d genuinely do if we had to build from scratch tomorrow.

1. We’d speak to an accountant before choosing sole trader or limited company

We wouldn’t rush to register a limited company just to “look professional.” And we wouldn’t assume sole trader is automatically simpler either.

The right setup depends on your income, goals, future plans, and risk.

For some, starting as a sole trader makes sense. For others, setting up a limited company from day one is more tax-efficient.

Either way, the first step is a chat with an accountant.

Getting proper advice early can save you tax, stress, and a lot of admin later.

2. We’d open a separate business bank account

One of the biggest mistakes we see? Mixing business and personal money.

Even if you’re just starting out, a separate account makes a huge difference.

You don’t need a fancy “business account” — just an account you only use for business income and expenses.

It’ll keep your bookkeeping cleaner, make tax prep easier, and help you actually see how your business is performing.

3. We’d track every expense — no matter how small

We’d log every business-related cost from the start:

Subscriptions

Equipment

Travel

Phone bills

Home working costs

Training

Even small amounts add up — and every missed expense is unnecessary tax paid.

This habit takes minutes a week, but it makes a huge difference come tax time.

4. We’d track our profit every single month

Instead of just “chucking 20% away for tax,” we’d take it a step further:

Track our monthly profit properly and then base tax savings on that.

Why? Because revenue isn’t what you’re taxed on — profit is.

If you’re only bringing in £2,000/month but spending £1,500, your actual tax position is very different from someone clearing £2,000/month in pure profit.

This method is more accurate, more tax-efficient, and gives you a clearer picture of how the business is really doing.

We’d also adjust what we save for tax based on that data — not guesswork.

5. We’d start with the right software (or a well-built spreadsheet)

We wouldn’t jump straight into Xero or QuickBooks unless we actually needed them.

For smaller setups, tools like FreeAgent, Pandle, or even a solid spreadsheet are more than enough.

But if we were transaction-heavy or growing quickly?

Xero might be the better choice from day one.

The key is: don’t just pick what your mate uses — and don’t “click and hope.”

Learn your system properly, or work with someone who does.

Bad bookkeeping causes more tax issues than almost anything else.

6. We wouldn’t copy someone else’s setup

Just because your mate claims his trainers, phone, and dinners through his limited company doesn’t mean you should.

Every business is different. So is every tax setup.

Your structure should be based on your numbers, your goals, and your level of risk — not what works for someone else.

Trying to copy other businesses is one of the fastest ways to waste money (or land in hot water).

7. We’d focus on cashflow before we chase “growth”

You can look successful on paper — and still run out of money.

That’s why we’d prioritise understanding cashflow from day one.

We’d track:

What’s actually coming in

What’s actually going out

What’s owed to HMRC (VAT, tax, etc.)

Our actual bank balance

The better your cashflow awareness, the less you panic — and the smarter your decisions.

Final Thought

You don’t need to be perfect when you start a business.

But you do need to be intentional.

Get the right advice. Build strong habits early. And stop guessing.

It leads to:

✅ Better tax efficiency

✅ Fewer mistakes

✅ No nasty surprises

✅ Clearer decisions

✅ Faster (and safer) growth

Already started and feel like some of this hit close to home?

It’s not too late to fix things.

We’ve helped hundreds of business owners clean up the mess — and it all starts with a proper conversation.

Chat to an accountant today. It’s never too early to get it right.

Chat with an accountant today