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According to recent statistics released by the Prince’s Initiative for Mature Enterprise (PRIME), there are more people over the age of 50 starting their own businesses than ever before.

The director of partnerships at PRIME, Nicky Templeton, has said there are a couple of reasons for entrepreneurs over 50 to start their own venture; some need to earn a living, while others want to take control of their lives and become their own boss.

Data from the 2013 Global Entrepreneurship Monitor Report has shown that just four per cent of those aged 50 or over launched their own company between the start of 2002 and the end of 2007. However, in 2008, the figure had risen to 6.5 per cent – equivalent to the percentage of active entrepreneurs in the 18 – 49 age bracket.

Starting a business at any age is fraught with challenges, but what hurdles do entrepreneurs over 50 come against? Some business people in their 50s have reported that the most difficult aspects include the changes in technology, marketing and bookkeeping – all of which are essential considerations for any commercial venture.

Here are some TAP top tips to help you achieve business success:

Keeping those business records accurate.

Try and maintain accurate business records so that you know what your income and expenditure looks like at any time during the year. Keep hold of all your business purchases, along with receipts, so that you know what you have spent and also have documentary evidence for expenses claims (we have free downloadable Sole Trader and Ltd Company guides that cover what is claimable in our resources page). Make sure you don’t lose all of those invoices, receipts and other documents as they will need to be filed!

Can you compartmentalise?

A top bit of advice would be to maintain separate bank accounts for your business and personal finance. Falling into the trap of paying for items for the company with your own personal money will start to confuse matters. Pay for business items with a credit or debit card attached to the company bank account, you will always have proof of expenditure and an accurate figure of what you have spent.

As always, keep receipts and record every purchase made for the business, so that you claim all eligible expenses at the year end.

You and your expenses

Keep track of all your cash expenses so that you can deduct them from your total liability at the end of the year. It is too easy to forget about purchases made with cash, so form a routine of recording expenses and filing your receipts on a daily basis.

If you have found this article useful, why not share it around and help a friend! As always The Accountancy Partnership is here to answer any questions, leave a comment below or drop us a line. If you think you may need the services of an accountant to help you out with bookkeeping or returns, grab an instant online quote.

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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