Starting a business is exciting. You're full of ideas, ambition, and drive. But very quickly, new business owners realise they're wearing all the hats: sales, marketing, operations, and yes, finance.

At Carthy Accountants, we often find the number one reason business owners get into trouble early on is this: they don't know their numbers. It's not about being bad with maths. It's about not tracking the basics: what's coming in, what's going out, and what the numbers actually mean.

Why "Know Your Numbers" is Step One

A staggering one-third of businesses fail within their first two to three years. Often, it's because they:

• Spend too much without planning
• Take out more than they should
• Think they're profitable when they're not

Take the example of a car mechanic charging £240 for a service and MOT. Without knowing their numbers, they might assume that £240 is theirs to spend. In reality, if they’re VAT-registered, £40 goes straight to HMRC. Another chunk goes to Corporation Tax. And they still need to cover business expenses.

That £240 can shrink very quickly.

In this Business Success Conversation, Carthy Accountants’ Michael and Adam uncover the reason many businesses fail, when it could have been avoided.

Sole Trader or Limited Company? The Rules Are Different

As a sole trader, your business and personal finances are more intertwined. As a limited company, it's different. The money belongs to the company, not you personally.

That’s why it’s so important to work out what you want to earn personally. Once you know that, we can help you extract it in the most tax-efficient way: through a mix of salary and dividends, supported by your personal budget.

Plan Ahead: Our Pre-Year-End Meetings

Around three months before your year end, we sit down with you. We:

• Review your numbers
• Estimate your tax position
• Explore options for tax savings
• Plan how to extract profits effectively

We don’t just give you numbers. We give you insight.

Don’t Let Your Bank Account Mislead You

Many owners treat the company bank account like their own. It’s not. If you take out too much without planning, you can find yourself facing a large tax bill, or an overdrawn director's loan account.

With the right planning, you can avoid that. You can have a business that pays you properly and supports the life you want.

Get the Business You Want

Knowing your numbers isn't just about compliance; it's about confidence. With the right support, you can build a business that runs well, pays you well, and grows steadily. If you're not sure where your finances stand, or how to plan ahead, get in touch with Carthy Accountants. We're here to help you get the business you want.