Starting your own recruitment business is an exciting step – the chance to take command of your financial future and channel years of experience into a company that you own and control.
But the process of starting up can be clouded by lack of information, misconceptions and inaccuracies.
RecruitHub works daily with experienced recruiters who are exploring their options in entrepreneurship, fielding hundreds of questions on the best way to start and scale a recruitment business.
To help bring clarity to the process, we’re sharing our conversations and tackling 10 of the biggest myths about starting up, head-on.
Without further preamble… let’s get stuck in!
Myth #7 – Low-cost accountants can manage finances
One of the biggest areas of concern for most first-time business owners is financial management – usually the area of operations they’ve had the least exposure to (if any at all), and a potential minefield if not handled correctly.
For many, reassurance comes from knowing that accountants can be engaged to ‘deal with’ core company financial matters for very competitive rates – £1,000 per year or less for small businesses.
But there can be confusion around what these types of basic accounting packages actually provide, and – critically – how much support and guidance will be available to founders during the running of their companies on a day-by-day basis.
In practice, financial decision-making is an ongoing part of operating a company, not something which can be swept aside and processed once per year.
- Investment & loans
- Corporation tax
- VAT / GST
- Client invoicing
- Invoice factoring
- Credit control
- Cashflow forecasting & financial modelling
- Contractor management
- Bonuses, commissions & incentive pay
- Perks & benefits
- Currency exchange & international trade
- Shares, grants & options
And much, much more…
Though basic accounting packages can seem attractive, they usually involve little more than processing and filing legally-required data – often providing little or no input to the vital role that effective financial management plays in shaping and enabling growth.
Having access to expert financial resources saves enormous time on self-education, ringing around networks and paying external consultants.