Key accounting tasks for start up businessesKey accounting tasks for start up businesses
Starting a business is an incredibly exciting, yet very busy, time and every penny counts.
Accurate bookkeeping is an absolute must and recording all business transactions accurately should be your number one priority.
This information not only helps you to ensure you stay on the right side of the HMRC and meet your tax obligations but also provides valuable data that will be invaluable in optimising your practices further down the line.
If this is the first time that you have every started a business, it is understandable that you may be a little daunted by the prospect of managing your own finances, but fear not.
At accountantsplus.net we specialise in start-up business accountancy and have gathered a list of essential tasks that all start-up businesses must do if they are to be successful.
Key tasks for start up companies
Embracing Technology
If you are serious about using accountancy to grow your business, software analysis is essential, using previous data to predict future trends and make more accurate forecasts.
Some such technologies are available online, but given the sensitivity of your financial data and the training required to effectively utilise such tools you should probable contact a professional accounting firm who puts an emphasis on software forecasting.
Look after the Pennies
Controlling cash flow is not only important for keeping your books in good order but is simply good practice for you as a business. Failing to do so and things can soon escalate out of control.
Tracking your cash flow is the best way to deliver growth and will reveal key trends in customer behaviour, product profitability, and much more besides.
Get your payroll Services in Order
If you are more than a one man band and employ one or more people, you need to ensure that your payroll services are carefully managed by an accounting expert. You may have one of these in house, but it is unlikely when just starting out so you may wish to delegate this key task to a local accounting firm.
Don’t forget the good old days
If you only have a few transactions to record, do not shy away from the old pen and paper method of account keeping.
This will only work up to a certain point, however, and if you are serious about taking your business to the next level it is highly recommended that you invest in a more advanced technological system as soon as possible.
Make sure that when you do upgrade you choose a system that is very secure.
When to hire a professional
If you have begun to grow at a rapid rate and are finding that you have less and less time to handle more and more accounting tasks, it might be time to hire a professional to do it for you.
Professional bookkeeping and accounting is a must for any business serious about their growth, not only ensuring compliance with tax laws and that your paperwork is error free but also utilising financial forecasting software to identify opportunities.