The start of any business is filled with decisions, planning, creativity, and although money is what makes it happen; with many new startups the accounting is left by the wayside. If you are trying to get a handle on it, you may be overwhelmed with questions, concerns, or just not know where to start.
- Educate yourself on the laws – When you develop your startup, you should be researching the laws that apply to your particular business. This is where a professional would be desirable – they can easily advise you on tax filings, important information that is required for your bookkeeping, and how long these documents should be saved.
- Be careful with expenses – It’s easy to spend money with a new business; marketing, supplies, energy or utility costs, rent, and that doesn’t include the smaller purchases that add up like lunches or coffee for the team. Keep a budget and use a business credit card to keep finances separate from your personal.
- Separate business and pleasure – Make sure you set up a separate business account to manage the cash flow properly.
- Get on the cloud – good accounting software for those that are a little unsavvy with financial account management can make things easier.
- Hire a professional – If accounting and payroll is just too much for you and your team, hire a professional CPA or accountant to ease the pain.
- Prompt collections – make sure that you send invoices out promptly, or even set up credit card or ACH payments to keep your dues coming in on time. Set penalties for those who are chronically late.
- Manage your inventory and records – Keeping your bookkeeping in check and audited can help you identify expected loss and internal theft.
- Save, save, save – New businesses come with uncertain costs that are not considered or come about unexpectedly. Savings should be planned out way in advance in the new business planning.
- Keep salary on track – When paying your employees takes a majority of your incoming profit, make sure you are tracking regular hours, overtime, and ask your accountant to help calculate payroll taxes.
- Set goals – If you started up a business, your dreams and ambitions should continue to develop over the course of your business venture. Setting weekly, monthly, or quarterly financial goals will keep you motivated to reach them.
