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Business Advisory Launch Programme · Stage 2 of 10
Money & Foundations
Put the financial plumbing under the practice: the account, the cover, and clean books.
How long
~half a day
You’ll have
An account, PII at the right level, and bookkeeping running
Steps
4 steps
Resources
2 resources
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01 Step 01
Step 01
Open a business bank account
Separating business and personal money is what a limited company’s accounts and your credibility rest on.
Do it yourself
- Choose a high-street bank (branch access, slower) or an app account like Starling, Tide or Mettle (fast, cheap).
- Have your incorporation details, ID and proof of address ready to speed approval.
- Open a linked savings pot and set aside Corporation Tax, and VAT once registered, from day one.
- Connect the account to your bookkeeping software so the feeds are automatic.
Common mistake · Running early income through a personal account "just for now", which fouls up the books and undermines the company.
Time~30 min to 2 hours Cost£0–£10/mo DifficultyEasy -
02 Step 02
Step 02
Get professional indemnity insurance at the right level
Advisory is advice-blame work: if a client acts on your advice and loses money, PII covers the claim and your defence.
Do it yourself
- Understand what it covers: negligent advice, breach of professional duty, breach of confidentiality, and defence costs.
- Get two or three quotes from consultant-focused insurers (Hiscox, PolicyBee, Simply Business).
- Set a level that at least clears your largest single project fee; most carry £1m or more, many £2m to £5m.
- Check it is claims-made, and understand run-off cover for claims after you stop trading.
Common mistake · Buying the cheapest, lowest cover to save a hundred pounds, then being under-insured against a claim that dwarfs it.
Time~1–2 hours CostIndicative: ~£80–£600/yr solo at £1m cover (a rough market range, get quotes) DifficultyMediumResource for this step
CHECKLISTPII cover-level worksheet
Set your cover level from your fees and turnover, and check the policy has what it should.
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03 Step 03
Step 03
Round out your cover
Indemnity is the core, and a couple of low-cost additions close the obvious gaps.
Do it yourself
- Consider public liability if you ever visit or host clients.
- Consider cyber cover, since you hold sensitive client financials (see the next module).
- Note that employers’ liability becomes a legal requirement the moment you take on staff.
- Bundle where sensible, as consultant policies often package indemnity and public liability.
Common mistake · Over-buying cover you do not need yet, or ignoring cyber despite holding highly sensitive data.
Time~30–60 min CostOften bundled, or +£5–£15/mo (rough) DifficultyEasy -
04 Step 04
Step 04
Get finance-clean and invoice-ready
For someone who may sell financial discipline, messy own-books is a credibility killer.
Do it yourself
- Choose bookkeeping software (Xero, QuickBooks, FreeAgent), and treat fluency in it as a selling point.
- Set up an invoice template with clear payment terms and company details, ready for Module 10.
- Know the current VAT registration threshold and register if and when you cross it (check GOV.UK for the live figure).
- Line up an accountant early: they keep your books straight and become your first referral partner.
Common mistake · Leaving bookkeeping until year-end while advising other people to stay on top of theirs.
Time~2–3 hours Cost~£10–£30/mo software DifficultyEasyResource for this step
CHECKLISTFinance foundations checklist
The bookkeeping, invoicing and tax basics to set up once and forget.
What you’ll have after this stage
- A business bank account with a tax pot
- Professional indemnity cover matched to your work
- Public liability and cyber cover considered
- Bookkeeping software and an invoice template ready
- An accountant lined up as your first referral partner