10 Essential Accountancy tips for a small business
Accountancy is essential for every start-up, this guide is for every start-up that has struggled with accountancy. This guide will show the ins and outs of accountancy and how a start-up will reach its full potential as a business. Here are the following accountancy tips for start-up firms.
. Knowing the laws & legislation of your business
The first and critical step to take in terms of laying down a strong foundation for managing your financials is to apply the laws and legislation to apply to your further expanding business. This is a fundamental skill of good bookkeeping and is key for learning what is and why it is so important.
These are questions you should consider.
- What time do I need to file my taxes?
- What information do I need to provide to record my expenses and profit?
- What is the duration of time should I keep my copies
. Keep Business, Business and keep Personal, Personal
Keeping a business and personal separate is the fundamental law for every business, even if you have a partnership with your friends because it never ends well when you mix business and personal relationships. These are accountancy tips for start-up firms that are new but experienced ones are making the same mistake too.
This applies to your personal and business expenses too. It is very hard to manage your business cash flow when you are intertwined with personal expenses. This is because it will become difficult to manage your business if don’t know what expenses are for business and what are for personal enjoyment.
.Keep watching your expenses
The problem here is faced by the majority of start-ups; having a relatively new business and keeping one eye on their expenses. An example of this: having team lunches, office stationery, or having coffee. Start-up accounting tips will help a lot if you follow them properly.
This also has to do with your attitude towards your business, if you’re having expenses left, right and centre then it will be a large detriment to your business. This will have an effect on your business because the little things matter.
Use the business card to pay for company expenses and link it with good accounting software, this way it will be organized and helpful to have all your expenses in one place. This start-up accounting tip will get a boost from your competition.
A credit card will help you get rewards for your expenses. Proper caution towards bookkeeping will help you save money, while also helping you track your expenses. Accounting for a business start-up can be hard but worth it in the end. This is because you have your expenses in check and are able to account for things.
. Get good Cloud Hosting Accounting Software
Technology is the saving grace of businesses and there are many benefits. But for this start-up’s accounting tip. Finding it will help you as a small business to manage your financials, also cloud-based accounting software will help you see your expenses from anywhere, anytime.
Accounting software will allow you to link it with a bank account, which will allow you to track investments and expenses in the companies.
This will help you and keep you on top of your finances and make any changes if it’s needed. Good accounting software will help you get on top of your finances and also have a major boost your productivity. This will help you as an accountant for a business start-up
. Hire an accountant
Doing your own accounting for a business start-up can be easier with experience, but it is still very difficult. However, this will be variously different from a person with a degree and who has been doing this for years. Hiring an accountant who may take the role of your advisor will be beneficial. He can advise you on how you can achieve success in your business in the long term.
. Accurately Track Salary
Paying your employees more than your budget is probably not a good idea. Manually tracking your employee’s leaves and when workers do overtime, it can get tricky. Your accounting software should be able to help track the salary and hours of the employee by having a pass or biometrics. But your accountant can potentially calculate payroll also.
.Management of your Cash Flow
Management of cash flow is very important in regards to your business, poor management can be due to loans being due early. The consequence of this is that in any future investment you won’t be able to invest because you do not have any cash available with you. The solution to this is to save enough money to avoid these types of situations, as well as have a safety net. The general rule of thumb, the more savings you have the better position you should be in to fund your business. The number one tip for accountants for business start-up
 Managing your inventory
Many things can throw off your bookkeeping, such as not tracking your income and losses. There are many things you can do to minimise or reduce it significantly, one by tracking you’re buying and selling dates, prices, and stock numbers. If you have a large inventory of items, as I said for accounting software, you should buy one for inventory management. This will helpful for accountants of small businesses.
. Investors who don’t pay
One of the most hurtful things is an investor or client not paying on time. But one thing that would help is sending on invoices after the job is done, this will increase your probability. Secondly, having multiple payment options such as card, cash, or finance. Also, an interesting thing is that for investors or clients who pay on time you can offer discounts or schemes to reward your clients who are on time. These are accountancy tips for a start-up firm that has investors who don’t pay.
This is where the professional comes in, they can help you establish efficient tracking of invoices and due to payment and gives you updates to you, and a friendly reminder to your customers to know why the payment stopped and how to rectify the situation.
There are short term and long term goals, this will get you far in your business and your life. As a recommended amount you should be doing this weekly, monthly, or quarterly. Your business will not have a destination to go to otherwise.
Check your financials, which can help you realize your long-term and short-term goals. To help you grow your start-up for next week, month, or year. Nevertheless, check out how expenses and what your client’s decision is.
How Can We Help!
Remember my 5th point, to hire an accountant to help you. This is where Carrington Blake accountancy comes in for your accountancy needs. We will call you to arrange a meeting with a Consultant, this service is free and there is no obligation to use our services. This meeting is essential in helping us evaluate your business needs. Once we have had the consultation you will be provided with a fixed quote which will be supplied to cover all the work we believe needs completing. Our quote stands for a month so you have plenty of time to think things over.
Call us for a quote on 0207 537 6628