4 [Essential] Accounting Tips for a Successful Start-Up Business.
If you’re in the process of setting up or have just set up your new business, you will know how tough it can be. Tough, but incredibly rewarding.
At the startup stage of any business, you wear ALL the hats. Even ones you didn’t know about! Sales, marketing, accounting, bookkeeping, cleaning, IT, admin, customer service, business development… The list goes on.
One area that needs close and scrutinous attention, is your business finances. All of the great ideas in the world can’t keep a new business afloat if you run out of money. If your primary area of expertise is not in accounting or bookkeeping, then take a look at these accounting tips for startups below:
Accounting Tips for a Successful Startup:
Leverage Finance Solutions
One of the biggest hurdles for a small business, especially when trying to gather momentum, is cashflow. However, you can actually avoid potential startup burnout. Don’t skip paying employees, or yourself, because you don’t have the money in the bank. You should also not put off major growth opportunities because you need to have the money first. Discover financing options – so you don’t have to wait on incoming cash.
Use Accounting Software
This is still overlooked by some businesses as unnecessary, with the business owner preferring to work from a spreadsheet. However, the time saved, accuracy, decision making data available completely outweigh the comfortable spreadsheet.
Using a cloud-based accounting software programme such as Xero, will enable you to have a good, accurate handle on where you stand financially at all times from anywhere in the world (with wifi).
Startup owners carry the weight of their businesses on their shoulders and though there is a lot to keep an eye on, financial health is absolutely fundamental to your business success. Using smart accounting tactics will help you navigate the tricky ground in the early days of your business with ease and reliability.
Create Different Bank Accounts
Just like your granny used to do with different pots of money for different events, sent up several bank accounts so that you can keep track of your outgoings. Operating expenses, tax, owners pay and profit. Each pot is then allocated a different percentage of your total income.
Financial analysts suggest having at least 3 months’ operating expenses but we suggest if you can build it up to 6-months you will have a firm buffer should anything happen.
Hand it over!
As you will presumably be the technician in your business, trying to learn another trade quickly and competently is time-consuming and will end up eating into your time selling. Working with a good, reliable bookkeeping or accountant is worth its weight in gold. Accounting and business finance experts will save you valuable time, will know tricks and tip for saving you money and will warn you when a potential financial hurdle is approaching.