- Posted 25th November 2016
Accounting Tips for Business Startups
Starting a business can be exciting and nerve wracking at the same time. Why? Well, this is because you are solely responsible for everything. From small to big details, you need to know all of them. This is why you need to do careful planning right from the beginning.
One of the important things you shouldn’t forget is to get on top of accounting tasks that come along with your business. A good accounting management is the key to running a business successfully. Without knowing your numbers, you won’t be able to manage and control them. And, if you don’t handle it properly, it can let your business down in no time.
So, if you want to set a right foot from the start of your business, here are some accounting tips you should read.
Choose the right accounting software
It is very important to choose the accounting software that is right for your business. There are many options like QuickBooks for Windows, QuickBooks Online and cloud applications like Xero and Zoho.
When your business starts growing, there are bound to be more complexities which only cloud software can handle. In addition, your will be abe to see the uploaded receipts, expense claims, bank account statements, credit card statements, cash flow in real time by using cloud software. Therefore, if you want cost effective and efficient long term solution, go for cloud based apps.
Establish a business bank account
After the registration of your business, opening your business bank account should be the next step. When you do this, you can keep your business and personal records separate leading to a less possibility of confusion.
Creating business bank account also ensures that your business and you are separate entities. For instance, if your business gets sued and you have not maintained your Corporation/LLC, then plaintiff may go after your personal assets. So, keeping your business and personal finance separated also helps to avoid this issue.
When you run a business, you need to record all the financial transactions in a detailed manner. You need to keep the records of purchases, sales, receipt and payments. A good record keeping helps to manage your money and fill up your tax returns correctly as well.
Hire a professional accountant
If you want to stay on top of your finance whilst focusing on your core business, you should hire a professional accountant. With extensive knowledge and experience, accountants can take care of accounting, bookkeeping, financial forecasts and planning, budgeting, and taxes. When all these core functions are handled effectively, your business can grow steadily.