When you launch a new business, you might keep your financial information in your head. After all, it is secure and convenient, with no risk of a system crash or the need to learn accounting software.
But there are always unanticipated surprises. This can cause you to overlook details in ledgers, forget tax deadlines, or lose track of cash flow. Not having a good accounting system from the get go can lead to trouble. Want to learn to manage you company’s accounts effectively? Here are our top 5 accounting tips for startups.
1: Accounting Tips – Forecast Your Major Expenses
Whether you like it or not, your business is going to go through a rollercoaster ride of ups and downs. There will always be seasonal effects on the market and you need to be prepared to ensure you stay afloat during the downs. You may also require some capital injections to upgrade software or acquire a new business opportunity. This is why it is important to forecast large expenses, so you don’t miss opportunities due to a lack of capital.
2: Oversee Expenditure
When you run a business, you need to monitor small costs. If you don’t, these can snowball into a sizeable amount. You need to hire a bookkeeper or have strong bookkeeping skills to track all your expenditure from stationery to lunches to business acquisitions.
3: Accounting Tips – Keep Accurate Records
If you don’t keep clear records, you may end up paying more tax than you need to. This is why it is important to keep your bookkeeping records straight. Having accurate documentation is paramount when it comes to keeping track of your cash flow.
4: Allocate Money for Taxes
No one wants to mess with taxes, or incur the wrath of the ATO. Unpaid taxes create a myriad of problems for businesses big and small. This is why it is important to adopt a pattern of organised money allocation to pay taxes. Take the weight off your shoulders, knowing you are covered when it comes to tax time. This also means you will avoid additional interest or penalties for missing tax payments. Having money on hand, and keeping tax deadline dates in mind, will protect your from penalties.
5: Don’t Ignore Invoices
Just like it is important to track your expenses, it is also important to track your invoices. By ensuring bills are paid on time, and chasing late invoices, you ensure your cash flow continues. Don’t be afraid to apply late fees to invoices.
Did our accounting tips get you thinking? Struggling with your business’ essential bookkeeping and accounting tasks? Don’t let them be a worrisome burden for you. Contact the team at Siragusa today. Our team of CPAs and accountants can help you grow your business, while keeping you compliant. Contact us today to book an appointment and get you back on track!