Starting up a business can be an extremely stressful time! That’s why we’ve introduced our top 3 tips for accounting, to give you one less thing to be stressed about.
1. Build up a Cash Reserve
Even before you start your business, think about setting up a seperate cash reserve that you can build up whilst your business is running. This is more of a ‘rainy day’ fund, should you require a sum of money at the last minute and don’t wish to take out a loan. Money issues are one of the top reasons startups fail, so it’s important to ensure you always have a back-up supply of money in an emergency.
For advice on your business finances, get in touch with us today on 01392 875391.
2. Analyse Business Transactions
To get ahold of your finances, it is important to track all of your outgoings and incomings from the start. Minor expenses such as team coffees, printer paper and even teabags all build up over time and can easily throw you off track when you check your accounts. Closely tracking your outgoings enables you to not only be careful with spending, but also informs you as to exactly how much you’re spending so you can prioritise budgets more effectively.
Accounting software allows you to keep track of payroll, expense tracking, invoicing, taxes and bills. Our business accounting packages incorporate Xero and Intuit Quickbooks among other reliable and efficient software. Get in touch with us to find out more.
3. Figure out Your Business Structure
This is where things might get complicated if you don’t know what your options are. If you become an incorporated business, your liability if you are sued is limited and enables your business to stand as a seperate entitity, meaning your personal finances are less likely to be impacted than if you are a sole proprietor. However, being a sole proprietor suits some businesses as it is more convenient and allows you to entirely run the business yourself. It’s important to understand the pros and cons before registering your business to enable you to make the right decision. For help and advice, contact us today.
If you’re looking for a trustworthy Accounant based in Exeter, find out more about our startup accountancy services here.