What financial systems should I put in place when starting a business?

Start with a separate business bank account, cloud accounting software, a method for capturing purchase invoices and receipts, and a clear process for raising sales invoices and chasing payment. If you have staff, add payroll and pension processes from the outset.

The right setup depends on how you trade. A consultancy with a handful of monthly invoices needs something very different from a retailer, construction business or company handling hundreds of transactions. The system should fit the way money actually moves through the business.

A finance system should not only produce a VAT return or year-end accounts. It should tell you who owes you money, what you owe, how much cash is available and whether the business is performing as expected.

Cheap or improvised processes can work while the business is tiny, but they become expensive when growth exposes the gaps. Put sensible foundations in place early, then add automation, reporting and controls as the business develops.