As a startup company, you have a lot on your plate! You are busy marketing, enticing customers, developing a client base, hiring hardworking professionals and ensuring that your product or service is top of the line. With all of this going on, keeping track of your finances can be one of the largest struggles and challenges you may face. Here are 5 helpful accounting tips for startups that do not require a masters degree in Accounting.
- Keep track of all expenses that are related to your business. These expenses are likely eligible for tax breaks and so you want to make sure you get every dime back that you deserve. You should save all receipts for spending on office supplies, business related lunches or dinners, utilities and more. Keep these receipts in a safe, organized location and consider logging them on the computer or in a notebook. These documents will be needed when you go to file your taxes in the spring.
- Follow up with invoices and ensure you receive payment in a timely fashion. It may be helpful to hire someone to be in charge on invoices. This individual should be charged with sending invoices to clients and customers with breakdowns of their purchases. These invoices should clearly state how long the customer has to make the payment. If they do not make the payment on time, there should be clear consequences for bills paid past 30, 60 and 90 days. Informing customers of these requirements upfront can make the process smooth and ensure that you get your money in time. Failure to get invoices in on time can through off your business’ books significantly, so this is an extremely important practice to start right away.
- Meet with an accountant. Often it is wise to visit an accounting professional so that you can start off your business on the right foot. A professional will know the ins and outs of tracking a business’ finances, and this individual can help guide you through the process so that you don’t feel lost and confused navigating on your own. Paying some money for a professional accountant or lawyer’s opinion can possibly end up saving you more money in the long run since you will be able to do all of your accounting correctly from the get go.
- Use an accounting software. There are various brands and software programs available to startups and small businesses on the market. Look into your options such as QuickBooks. These programs are affordable and will save you a lot of time and energy when tracking your accounting. They can allow you to log and view all income, spending, loans and more. This will keep all your info safe, secure and in one convenient location.
- Finally, it is essential that you are aware of all tax deadlines that your startup is responsible for paying. You will be expected to submit certain forms each month. Not doing so could result in penalties, fees and other legal issues that can be stressful and frustrating to deal with.
If you are beginning your startup company, one of the most influential things you can do is prioritize and organize your finances and accounting right away. Be sure to log all information, keep track of invoices, meet with a professional for guidance, use an accounting software and be aware of tax deadlines so that you can meet them regularly. All of these tips will help to set you up and ensure that your startup is in good shape financially. This will give you the security you need to then put your energy into other efforts to build your business.