The three golden rules for business start-up accounting

The three golden rules for business start-up accounting

An accountant is an excellent investment for business start-ups from day one, however, there are always things you can do as a business owner to improve the overall quality and efficiency of your accounting. Following these three golden rules will help you to make sure your accountancy is the best it can be.

Organise your records

When you’re in the cut and thrust of your business’ early days, it can be hard to find the time to organise your receipts and put things in a logical order. It’s worth finding just a few minutes out of your day, however, to make sure you’re keeping things in a sensible system. Five minutes spent putting your receipts and invoices in order can save you an hour when you come to need them again later on. Your system doesn’t have to be complex – file by date, so you always know where to find what you’re looking for.

Separate your finances

It can be tempting when you’re a small operation to blend your personal and business finances, particularly if you’re a single entrepreneur running the business. You’re going to want to get a dedicated business bank account and credit card as soon as possible, however. This will help keep your finances in their appropriate channels. As time goes on and your finances get more complicated, you’re going to find it harder to separate business from personal – so make sure you do it from the outset.

Plan for expansion

A common mistake made by business owners is not planning for expansion with regards to their finances. You should always have an eye on your business growth, and prepare yourself for handling a larger volume of business. If you account for this, you’re never going to be taken off guard. Many businesses find their accounting systems stretched to capacity because they haven’t thought about the ramifications of needing to deal with larger orders or higher numbers of customer payments. Don’t get caught out.

If you need more help, guidance, or information about putting the finances of your start-up in order, contact the friendly financial professionals at SQK Accountancy today.

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