4 vital BF´s for your business
Updated: Sep 29, 2022
They say that starting a business is easy but running it is a different story. This article will not tell you how to make a business plan, market research, and all the financial forecasts because you probably know all those already. As an entrepreneur, you'll have to carry many administrative tasks and comply with different legislations and policies and focus on making your first break even.
STEP 1: Know the law and policies of your industry
There are many laws in Finland that entrepreneurs have to comply to. Here are some main laws that an entrepreneur should at least know before opening a business: collective agreements, competition act, consumer protection act, employment contract act. There are other laws that are mandatory to know in the specified industry. Know them by heart because paying fines is stressful and more expensive. Joining an entrepreneur association that has lawyers is also beneficial for any entrepreneur. There are many associations that offer legal advice. Enterprise Finland is a good place to start to seek for advice.
STEP 2: Embrace the taxes and hug the tax bear
Taxation is the heaviest for entrepreneurs but it's a bad idea to start your business by evading the taxes. Count the cost of your service instead, then add the taxation, other costs, the profit you want to earn, and finally, the VAT.
The main taxes that you need to understand: value added tax (VAT), prepayment tax, and income tax. Pay the taxes on time, and it's better to pay them on the 12th of every month than quarterly.
STEP 3: Insurances and social perks, it takes but seldom gives
There are many compulsory insurances that the entrepreneur must take. These are YEL, which means the entrepreneurs insurance. TYEL is a compulsory insurance if you have a worker. Other insurance if you have a worker are group accident insurance, health insurance, and the worker´s compensation insurance. With all these, there are still obligatory costs such as an employment fund for the employees and other benefits you as a company might want to add to keep your employee happy.
All of the obligations above will have to be accounted to the prices of the services and products you offer. Cost management is very important in order for the entrepreneur to become successful.
STEP 4: Get a great accountant
An authorized accountant is the savior of your business and finding one can be quite challenging. The accountant officer must understand the local taxation system and salary, and give advise on paying taxes monthly than quarterly. Ask your entrepreneur friends for recommendations and be sure that your accountant and accounting office have these options before choosing one.
Does your accountant have a KLT degree?
Is the accounting office authorized and does it belong to the Financial Administration Association?
Do you talk in the same language and does your accountant officer advice you in financial matters?
Choosing great partners will help you run a successful business.