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Even though we have, to say the least, six different months behind us, we are getting hopeful news that more new businesses have been started in Sweden this summer than during the corresponding period last year. Daniel Johansson, CEO of Wint Automated Accounting Service, shares some helpful tips for you who are just beginning your startup journey.
Starting your first business can be a pretty fast-paced story. Exciting, of course, with the many challenges you face, but also a bit onerous. Entrepreneurship often comes with a myriad of obligations and commitments that you may not always have full control over how to handle.
And amid all this chaos of new tasks and experiences, it’s easy not to take advantage of some of the financial tricks that both you and the company can benefit from in the long run. Daniel Johansson, CEO of Wint automated accounting service, offers some advice on what you can do.
Sell assets to the company to free up share capital.
– Even if you currently do not require more than SEK 25,000 in share capital to start AB, it is still quite a large amount of money that you could benefit from as a private person. Of course, it would be nice if you could get them back when the company is registered, Daniel wonders and continues:
– The share capital does not have to be blocked in the company account, but you have the right to use the money to buy assets that will remain with the company in the long term. So why not let the company buy something from you as an individual, to get your money back?
For example, if you have a computer that you want to use at work, you can sell it to the company after you sign up using the money you put in as equity. What happens in practice when you do this is that you temporarily enter the company with private funds to cover the share capital, but then you sell assets and thus you can withdraw cash.
– By doing this, you also avoid paying an accountant to make an appraisal of your computer, which you would have had to do if you had to enter with it as non-monetary property, that is, if the value of the computer was part of the capital social before forming his companies, says Daniel.
Read more: How Wint can automate your finances.
Don’t forget your deductions!
Even if you have not yet started to earn money for the business, and therefore have to enter with private funds to make a lot of purchases, you should not forget about making deductions. The things you buy must be used (and owned) by the business, so you have every right to deduct VAT.
– Also remember that if you use your private money to make these purchases, you must reserve them as a loan to the company, so that you can choose them again when your business has started rolling, says Daniel.
Also take deductions for purchases you made before the business was registered
– In some cases you may have incurred costs before starting the business or before registration with the Swedish Business Registration Office, for example for equipment or consumables. You can also make deductions for it, as long as it applies to purchases made during the starting year or the previous year, says Daniel.
What applies is that the cost must be applied to something that is needed in your business, that you have not deducted the expense before (for example in another business) and that does not refer to equipment that you in connection with the start brought into the business to a so-called estimated acquisition value. On the website of the Swedish Revenue Agency, you can read more about the rules regarding deductions for purchases prior to company registration.
Don’t let the whole world criticize you
– When you start your company, you do it because you want to make your dream come true, invest in an idea or bet on your freelance. Suddenly having to think about VAT deductions, planning salary statements and posting invoices was not what you had seen in front of you. They become boring must-haves that turn gray hair and steal time and money from your business.
– Make sure to automate and optimize your administration as much as possible so that you can fully focus on your core business. We at Wint are happy to help with that, concludes Daniel.
Read more: Reduce your administration time by automating accounting.
Wint is the accounting service that wants to facilitate the management of a business. When Wint automates the financial management of its clients, accounting is handled in real time, making it easy to track cash flow and liquidity. Plus, it frees up time that can be spent on more business-critical parts of the business, like building your business.
Do you want to know more? Take a look at wint.se.
