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Don’t Forget to Account for Yourself (Posted by Tim Brownstone)

Tue, 25 March 2014

As the founder of KYMIRA Ltd, I have been responsible for keeping our books since the company was founded in April 2013.
Thankfully, I did some basic finance modules while at Uni which gave me a base to work from. However, the most important step I took early on was asking for help from people that knew more about accounting practice than I did. This was significant partly because I managed to gain some really valuable advice but also, I now have a supportive, proactive accountant that has been able to advise me on best practice to keep our books up to date and comprehensive, and to be tax efficient. 
 
One thing that I was recommended to do, which I would never have considered, is during the early days when the business cannot afford to pay you for the 14+ hour days you are working, make sure that you are still taking a salary and then loaning it to the company. This way the business’ bank balance remains unaffected, but when the funds are available, you are able to pay your loan back and thus receive your unrealised earnings.
 
I think that a lot of young entrepreneurs (myself included) forget to think about themselves when doing financial planning for their companies. It wasn’t until it was pointed out to me that amongst all of my projections for expenditure I hadn’t actually included paying myself a wage – I had factored in wages for other staff in the future but had forgotten about myself! Getting an accountant straight off the bat isn’t essential, I think that is down to personal preference. I chose to sign KYMIRA up with an accountant not necessarily because I was concerned that I would not do everything correctly (HMRC is a fantastic resource) but more because I didn’t feel that I would be able to be as efficient with things. 
 
Finally I would strongly recommend making the most of existing networks that you may belong to, such as a school or university alumni networks. I have gained some really valuable insights and help through the University of Reading alumni network and, in my experience, fellow alumni are often the most willing to help out. You don’t need to spend a lot of (or any) money to get help with accounting practice, you just need to be willing to ask for it.
If anyone wants to get in touch, you can find me on Twitter @TimEntrepreneur.
 

About Tim Brownstone (CEO of KYMIRA Ltd.)

Tim graduated with a BSc (hons) from the University of Reading in July 2013. During his final year he founded KYMIRA Ltd. and launched their sportswear brand, KYMIRA Sport. They have developed a range of performance and recovery enhancing apparel that acts at a cellular level by harnessing the wearer’s surplus energy. 
 

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