One of the most common mistakes many startups and small business owners make is holding off on bookkeeping tasks. By hiring a bookkeeper from the start, you’ll have less of a headache come end of the year. We understand as a startup company, your funds are very limited, however if you can manage to allocate a small percentage to bookkeeping or accounting services, the rewards will outweigh the costs.
Time is money and if you choose to dedicate all of your time to bookkeeping, it’s likely your books will not fill up as quickly as you wish. Below are a few of the most important tips to consider when starting out with your business.
Beginngers Bookkeeping Tips
Find the Right Software and Stick With it:
Once you find bookkeeping or accounting software that fits your needs it’s important to keep all of your information in one place. Using multiple programs will cause confusion and allow unpaid invoices or outstanding bills to slip through the cracks. Margo’s Bookkeeping NYC employs recommends QuickBooks for bookkeeping because of it’s easy functionality and simple integration options.
Separate Business from Personal Expenses:
This is one of the most common bookkeeping mistakes, many new business owners make. Understanding what qualifies as a business expense is the first step in learning how to keep the two accounts separate. By combining your personal and business accounts you’ll have a hard time separating the two for tax season.
Learn the Basics
From the beginning you should understand the important documents that need to be constantly updated and correct. These documents include profit and loss statements, income statements, balance sheets and cash flow statements. Although these statements may not fill up right away getting into the habit of checking them will help you in the future. Other basics include learning how to write proper invoices, estimates and processing payroll. All of these functions are normally handled by a professional bookkeeper.
Margo’s Bookkeeping is experienced in providing quality bookkeeping services for small businesses, startups and large corporations. Our custom bookkeeping services were created in order to fit each individuals financial needs. Offering onsite and remote bookkeeping services throughout New York City, allows us to work with prestigious companies, as well as some of the most new and exciting startup brands.