I am going to start a company for a simple online service which should sell digital goods to customers. Since I am new in running business world there are few things I need to learn. I've tried to ask few accountants but they were of no help to me. I would do everything right from the beginning so I don't break any laws.
I am going through a book about bookkeeping so I can run this in the beginning by myself. I will be opening a limited company in the UK for this service.
Clients will be able to upload their digital goods on the site and will be paid a commission from the sale. There will be no employees in the company until it gets some serious money.
Customer will be able to buy this digital goods, usually around $10-$15. So my main activities involving my company will be:
- charging money for goods from the customers through paypal in the beginning
- sending money as commission to the clients
- spending money on marketing
So if I don't have any employees involved and use online SaaS accounting software I only need to enter revenue from sales and expenditures from sending commissions and marketing. And then I use external help from accountant to prepare for filling of taxes.
Also the answer I didn't get from accountant is regarding the paypal. Some people told me for paypal transaction not to add individual transations into my books but aggregate them for example on daily basis. Or how to manage all the sales assuming each new sale is coming from new customer. I will have each sale save in my database but do I really need to add each transaction into books, in the beginning it should not be a problem but I still would like to know for the early phase how to do it.
The next thing all the fees on the paypal site I can add them as costs in my books.
So regarding my duties with the company I need to regularly record all transactions into books, send quarterly tax reports and end of year report, which the accountant will help me. Is this all I need to take care from business perspective in the beginning?
Did I prepare myself well for running the business or I should take a look for anything else?