Starting a new business comes with many initial decisions and establishing how operations will run. While your business plan would have covered how you intend to make money along with expected business expenses, it is vital to set up an effective accounting & bookkeeping system that will keep your business on track. Accounting & bookkeeping go hand-in-hand to help you make informed financial decisions for your business by maintaining accurate records and managing cash flow. Here are our tips to understand and make it easier to get started.
- Hire an accountant. A trained professional will be able to help with things such as processing 1099s, managing customer accounts, and overseeing your accounts payable. Keeping your business’ records and finances organized and accurate from the beginning will pay off dividends by minimizing errors. You will save yourself time to be able to focus on other aspects of your business so it can grow.
- Establish your bookkeeping system. One of the most important things you can do when setting up your business is starting with a functional, efficient and accurate bookkeeping system. There are a variety of programs which can be used to manage financial reports, reconcile accounts, and manage information on customers, vendors, and inventory. One option is to partner with an accounting & bookkeeping firm which can assist with handling the setup, tailored to meet your business needs.
- Take training. While you might not need to be an expert in accounting & bookkeeping, becoming knowledgeable on processes, government regulations and deadlines will help you achieve your long-term financial objectives. Having an understanding of healthy financial management will also help with deciding how to best set up a system that works for your business.
