Having a startup?
A start-up comes with the diversity of responsibilities; keeping the finances on track is one of them. But you are too busy about working on the business idea instead of planning for the finances!
“Organised finance is a key to establishing and maintaining a booming business.”
Establishing a strong financial infrastructure is critical when starting a new business. It can be a major reason for stress for founders. But you can avoid it unless you are starting up your own accounting firm.
Managing your startup’s finances is not as complicated as you thought and can save you a ton of stress down the road. Monitor what’s going on today will help you to control your business’ future. It includes monitoring business’ key financial metrics consistently and effectively.
You should make a checklist when it comes to prepping the business finances. A pre-planning goes a long way, below are the tips for getting your start-ups finances in order.
These are the five key steps to getting your finances back on track:
1. Separate your accounts
Personal and business accounts stay separate; it should be the first thing on your to-do list which is often an overlooked mistake. Separating your personal and business accounts will help you to sort out the business expenses and deductions to keep business financials clean.
This is the most natural move to mix the two especially when you are running a small business. Set up the finances and maintain the separate accounts for business transactions in a way so that you can easily keep track on your business expenditures and keep confusion at bay.
2. Organise hard copies of your invoices
If you are organizing a small business, it’s easy to let a stack of bills piling up. But for measuring the financial status of the business, it’s important to take care of your business invoices.
Although invoices are not the most energizing part of being an entrepreneur they are something which cannot be avoided in any business and should manage efficiently.
3. Set up an accounting system
To get your business on the track, setting up an accounting system for your business considered a requisite movement. Before selecting any accounting system make sure what exactly your business need.
At the end of each quarter, many clients come with a shoe box which is full of receipts. Accountant emptied the box, tallied the expenses and reconciled the bank accounts. Finally, the financial statements delivered.
You decide which system is best the accounting system or the shoe box method.
4. Enlist your tools
Keeping the business finance on track can feel like a never-ending job. From organizing the invoices to expenses to daily accounting, it’s a wonder to get the time for any other task.
Technology brought about a multitude of tools to save the time of small businesses and headaches on daily financial tasks. The registration of a trademark is as important as registering a domain name because it gives intellectual property rights to protect your brand. In the realm of online, much online software is available which you can implement to track your business finance. They are less expensive with a superior combination of customizability, usability and accounting toolset.
5. Don’t forget the taxes
For every entrepreneur, tax time is the most stressful time period. But if you manage all the business finance efficiently throughout the year, it won’t trouble as you might think. Paying taxes as a business owner make you feel a lot more daunting than paying as an employee.
All you can do is open a separate tax saving account and put a percentage of every payment straight into the tax saving account. This will help you when the tax season rolls around.
Guest Post by Shanker Rungta