When you’re starting up a business, getting your bookkeeping in order is important. You need to know what works, what doesn’t and how much you have in your company bank account. Whilst the product you’re launching or the service you’re offering is important, you mustn’t put your cash flow to the bottom of the list. Here are four fantastic startup accounting tips.
Implement From Day One
Your finances cannot be an afterthought. You need to set processes in place from day one. Getting a bookkeeper on board from the very beginning will free up your time to concentrate on other areas of your business, the reasons why you set up your startup. You’ll also benefit from a
professional bookkeeper taking care of things. They do this every day so can
make sure everything is organised and in place.
Keep Things Separate
We’ve spoken before about keeping your personal finances and your business finances separate. This is critical in making sure you know what is going on with your startup. Ultimately it will make life easier as you will be able to view what is flowing into the company and what payments you are making too. A business account is so simple to set up and you might get discounts on other things you need too, such as insurance.
Set Some Financial Controls
To make sure everything is above board and proper, putting some financial controls into place can help everything run smoothly. This can work especially well if there is more than one of you in charge of the business. There are horror stories of one partner taking all the company money and doing a runner. Some common controls could include two signatures for cheques and placing low limits on business credit cards. Having more than one set of eyes on your finances will help you see any errors.
Don’t Do It All Yourself
As mentioned above, getting a bookkeeper involved makes life easier. It’s an outsourced cost but they will be able to save you money on what you can claim for and keep a professional eye on your books. They’ll also be able to show you where things are working and flag up mistakes. Don’t be afraid to delegate and ask people to help. If you do everything yourself, you will very quickly find yourself heading towards burn out.