4. Agree on your respective contributionsAgree as early as you can between yourselves on what each of you is to contribute to the project. It may be cash, expertise or just a number of hard hours’ work. For that you will have also agreed on the share of the spoils, usually denoted by what share of the equity each of you will take. However, it will almost certainly turn out that one of you will have to contribute more than any of you anticipated. Either you must know beforehand how that extra contribution will be rewarded or one of you is going to feel hard done by and mistrust and argument will set in.
This is the fourth of six short pieces on working with your accountant, written by Christopher Jenkins, senior partner of Wingrave Yeats (yes, they’re accountants). Wingrave Yeats was voted Best Medium Sized Firm of the Year and Chris was voted Best Business Adviser of the Year by the CBI. Contact him at firstname.lastname@example.org or go to www.wingrave.co.uk
For more on choosing and using an accountant, click here for our Start-up Guide.