Starting a business is exciting, but the first month can also feel like you’re spinning plates. You’re trying to win customers, deliver the work, build something that lasts… and somewhere in the middle, you’ve got to keep your finances tidy enough that you don’t regret it later.
You’re not alone, either. The UK sees hundreds of thousands of new businesses each year (ONS reported 317,000 “business births” in 2024), which means plenty of founders are going through the same early-stage scramble. The good news is: if you set up your accounting properly in the first 30 days, everything becomes easier—cashflow, tax, pricing, and even decision-making.
Below is a practical checklist you can follow without drowning in jargon.
Week 1: Get The Basics Locked In
1) Choose your business structure (and make it match your plans)
Before you do anything else, be clear on whether you’re trading as a sole trader or a limited company. It affects how you pay tax, what you file, and how “separate” your finances need to be.
If you’re going limited, build good habits immediately: treat the business like its own entity from day 1 (because legally, it is).
2) Open a dedicated business bank account
Even if you’re a sole trader, separating money is a game-changer. For a limited company, it’s a must.
Your goal: every income and expense flows through one place. That makes bookkeeping faster, VAT tracking cleaner, and your year-end far less painful.
3) Pick your accounting software and connect your bank feed
You want your transactions pulling in automatically, not sitting in a pile of screenshots. Many UK startups use tools like QuickBooks and Xero because bank feeds, invoicing, and reports are built in.
This is also where you can set the tone for how you run the business: simple, consistent, and based on real numbers. If you want the setup done properly from the start (and kept that way), Asmat & Co Accountants can help you get your system working like it should without overcomplicating it.
4) Create a simple “finance folder” (yes, really)
Make a folder in Google Drive/OneDrive with these subfolders:
- Sales invoices
- Supplier bills
- Bank statements
- Contracts
- Payroll (if relevant)
- HMRC/Companies House
It sounds basic, but it saves hours later.
Week 2: Sort Your Invoicing, Expenses, And Records
5) Set your invoicing process (and decide how you’ll get paid)
Answer these early:
- When do you invoice (upfront, on delivery, monthly)?
- What are your payment terms (7, 14, 30 days)?
- How do customers pay (bank transfer, card, Direct Debit)?
- What happens if they don’t pay?
Write your terms once, put them on every invoice, and stick to them. Late payments destroy cashflow fastest when there’s no process.
6) Set up expense capture (so you don’t lose claims)
Your first month is usually full of small purchases—software, travel, equipment, subscriptions. If you don’t track them, you either lose tax relief or end up guessing later.
Do this now:
- Use an app (or your accounting software) to snap receipts
- Decide who can spend and what needs approval
- Save digital invoices for subscriptions (not just bank lines)
7) Build a basic chart of accounts (keep it lean)
You don’t need a 200-line chart of accounts. You need something that helps you understand the business.
Start with categories like:
- Sales income (split by service/product if useful)
- Marketing
- Software/subscriptions
- Travel
- Professional fees
- Equipment
- Bank charges
- VAT (if registered)
If you can’t read your own reports, your bookkeeping isn’t helping you.
Week 3: Stay On The Right Side Of HMRC
8) Know your VAT position early (don’t leave it too late)
A big one. The UK VAT registration threshold is £90,000 in taxable turnover (rolling 12 months).
In your first month, you should:
- Estimate your next 12 months’ sales
- Decide whether you might benefit from voluntary VAT registration
- Make sure your invoices are VAT-ready if you expect to cross the threshold quickly
If you get this wrong, you can end up with pricing issues, awkward backdated VAT, or an admin mess.
9) Put tax “pots” in place for peace of mind
Even if you’re not paying tax immediately, build the habit now.
A simple approach:
- Move a % of each payment into a separate savings pot
- Keep it untouched for tax and VAT
- Review the % monthly as your profit becomes clearer
This keeps you from spending money that isn’t really yours.
10) Understand key deadlines (so nothing sneaks up on you)
Deadlines vary depending on your structure, but your “first 30 days” win is to get reminders in your calendar for:
- VAT returns (if registered)
- PAYE deadlines (if you run payroll)
- Companies House filing dates (limited companies)
- Corporation Tax milestones (limited companies)
Once reminders are in place, you reduce the risk of last-minute stress and penalties.
Week 4: Build Reporting That Actually Helps You Run The Business
11) Track 3 numbers weekly: cash, profit, and tax risk
You don’t need complex dashboards. You need visibility.
Each week, check:
- Cash in bank: how much runway do you have?
- Profit trend: are you actually making money (not just billing)?
- Tax/VAT risk: are you setting enough aside?
This is where management reports can become your secret weapon—especially as you grow and need to make faster decisions.
12) Set rules for director spending (limited companies)
If you’re running a limited company, be careful with personal spending through the business. You can create director’s loan issues without meaning to.
A simple rule: if it’s not clearly business-related, don’t put it through the company without checking first.
13) Decide what “good bookkeeping” looks like (then make it repeatable)
A lot of startup accounting goes wrong because it’s done randomly—when you remember, when you’re stressed, or when you need a number quickly.
Instead, set a monthly routine:
- Reconcile bank transactions
- Upload and match receipts/bills
- Chase unpaid invoices
- Review your key reports
- Put tax money aside
Consistency beats intensity every time.
A Quick 30-Day Summary Checklist
- Separate your money (business account + clean records)
- Use accounting software and connect bank feeds
- Set invoicing terms and payment methods
- Capture receipts from day 1
- Know your VAT risk and pricing approach (£90,000 threshold)
- Track cashflow weekly, not “when you have time”
- Build a monthly bookkeeping routine you can stick to
- Put deadlines in your calendar and stop surprises
Ready To Get Your Startup Accounting Set Up Properly?
If you want your first 30 days to feel organised (instead of chaotic), get support early. The right setup gives you cleaner books, clearer reporting, and fewer tax headaches as you grow.
Visit Asmat Accountants and book a consultation to get your systems, reporting, and compliance set up the right way from day 1.
