The idea has been building for years, and now you’re finally making it happen. Your startup business is nearly off the ground! Whether you’re months or days from opening, or if you’ve just opened for the first time, how you manage your accounting at the outset can set the overall tone for success.
Your startup is still young, and there are still dozens of aspects to work out. But while things like branding and marketing strategies can wait, your financial accounting should hit the ground running along with your business. When it comes to keeping track of your investment, expenses, or payroll, the best time to start is now.
Aldridge Borden’s CPAs have empowered numerous businesses to open their doors and keep them that way for the foreseeable future. From the first spark of an idea to the immaculate bookkeeping all businesses aspire to, Aldridge Borden can help your startup every step of the way.
For startup businesses, these are the top accounting tips and tricks to keep in mind.
SEPARATE BUSINESS FROM PERSONAL
The line between business and personal expenses can blur easily in the early days. By taking steps to separate your personal finances from your business finances, you make it that much easier to keep track of moving forward.
Once you’ve registered your startup, starting a new account is as easy as visiting a bank or visiting one online. If you haven’t already opened a distinct bank account for your business, make sure you do your research before deciding on a bank that’s right for you! Many banks offer business incentives and benefits to match your needs.
WATCH EXPENSES LIKE A HAWK
It can be thrilling, bordering on consuming, to invest funds into your new business. Every penny we spend feels like an investment into our startup’s future. But that kind of bonanza attitude can quickly sour with even frequent minor expenses, tripping you up in the formative stages.
Now that you have your own business account with a trusted bank, make sure to funnel all expenses big and small through that account. This process will help you monitor your growth and keep track of expenses for tax purposes. Some good software can also help.
CONSIDER ACCOUNTING SOFTWARE
For businesses new and old, there’s no such thing as being “too detailed” when it comes to your finances. When every nickel and dime needs your utmost attention, it’s best to rely on a trusted tool. Bill paying, payroll processing, record keeping, and secure document storage can be tricky when you’re first starting out. By investing in accounting software at the outset, you’re setting your startup up for success.
For big, medium, and small business accounting, there’s OneSource–a cloud-based, fully customizable accounting software solution. Best of all, OneSource gives you the peace of mind you need in your businesses’ early days so that you can get back to opening your startup with all the pomp and circumstance it deserves.
SAVE MONEY TOO
You’ve put a lot into your new startup to give it the best possible chance. But if you’re not careful, you can put too much into your new business and end up handicapping yourself financially early on.
After taking care of the essentials, it’s important to put money aside for any unforeseen operational expenses in the months and weeks following your grand opening. It’s not always possible to predict sudden financial needs, but so long as you’re planning for emergencies at all, you’ll be better positioned if something actually happens. By setting some money aside, you’re purchasing unofficial business insurance for any surprise expenses later.
MANAGE INVENTORY
For retail businesses especially, accurate inventory management is king. An oversight or two may seem small when your inventory numbers into the tens of thousands, but in actuality, the more accurate your understanding of inventory, the more accurate your understanding of overall financial health.
If you’ve already made your first big inventory purchase, consider creating a business flowchart for inventory management and organizing your inventory for efficiency. There are dozens of simple tips and tricks to improve efficiency, such as making your most popular products more accessible to your employees. The more sensible your inventory management, the more time and money you save in the early days when it matters most.
To establish the most accurate inventory management system possible, or for more tips on retail accounting specifically, visit Aldridge Borden here.
EQUAL PARTS INSPIRATION/PERSPIRATION
You’ve already done so much of the hard work in turning your dream into a reality. For a startup, the early days are the most perilous, but it’s important to remember that you’re not alone. There’s a thriving, interactive startup community online, and numerous free digital resources to make your grand opening just a little bit easier.
Most importantly, don’t forget to take a moment to enjoy your accomplishment! With hard work, a sense of optimism, and these essential startup tips, you can start toward success and enjoy the ride.