Starting a business for the first time is big thing in any ones life, it sucks up all of your energy and a lot of time. Then comes the worry of looking after and managing your Small Business Accounts and money.

Starting a business for the first time is big thing in any ones life, it

sucks up all of your energy and a lot of time. Then comes the worry of looking after and managing your Small Business Accounts and money. For most of us, accounting is the last thing on our minds. This is where you have a few choices when you are setting up your business.

Of course, you are likely to want to avoid the shoe box method of accounting.

1. Consider a course in accounting basics. This would give you some basic grounding in bookkeeping that should be sufficient to enable you to do the basics right. At this point after a month or two of accounting for your business you'll have a fair idea of how comfortable you are with keeping everything up to date. You could then just ask your accountant for help with annual accounts.

2. If you know that your maths and money management skills are very minimal, then speak to an accountant and ask for advice, find the right accountant and you'll be surprised how much free advice you can get. An accountant will be able to show you the basics of business accounting and then you could perhaps have monthly meetings to ensure that everything is ship shape and to complete your more formal annual accounts. Obviously, you could simply ask your accountant to manage most aspects of your accounting, meet with them fortnightly to give them all your receipts and invoices and get on with just running your business.

Whichever method you choose, knowing your cash-flow balances, your monthly outgoing and incoming is a very important part of running any business. Your accountant can help you with cash-flow projections so that you can plan expansion perhaps or buying of new equipment.

If you're considering business loans you'll want to have your accounts in good order, a bank will usually want to see these before committing to lending you money - either that or you'll end up paying a very high rate of interest.

As a sole trader you can easily manage your accounts using a spreadsheet application and then if you are comfortable with this you can use your accountant for periodic advice and your end of year accounts perhaps.

However, if you are forming a limited company, there are more strict requirement for accounting formats and this is where you would be well advised to source professional advise and help from your accountant.

Once you begin turning over a reasonable amount each year, you'll want to consider registering for VAT. There is an annual threshold and once you begin to exceed this threshold you have to register, until then you have a choice.

VAT Returns can be a little tricky at first, not everything you buy or sell needs VAT payments for example.

Robert runs an online Accountancy site helping businesses, contractors and self employed people saving time and money with their accounting. To find out more and for help with your Small Business Accounts visit Accountants South East