As a start-up, you will be looking to give your new business venture the greatest chances possible of succeeding, and why wouldn’t you? Getting ahead in the business world is now tougher than ever so you will need all of the help you can get to ensure your start-up goes on to become a raging success.
Statistics show that as many as 80% of new business ventures fail within the first year. On the flip side, however, if you’re doing things right and can keep going for two years, statistically, you are far more likely to succeed.
When you start a new small business, it can be very easy to find yourself overwhelmed as there are so many aspects to consider. Not only do you have to figure out a business plan, provide products/services etc, but you also need to be good with numbers.
In business, the financial side of things are incredibly important, so if figures aren’t your strong point, you may wish to go ahead and invest in some good quality accounting software.
Whilst we’re on the subject of accounting software and accounting in general, here are some effective accounting tips for start-ups, so take a look below and see what you think.
Begin with the basics
As a start-up, you are, as the name implies, starting from the basics, so now is not the time to get lavish with the credit card and business loans. To help keep your finances and your accounts in check, start lean and build your way up.
Only you will know which equipment and office space your business needs, but just make sure that you cover all of the basics, without going over the top. You ideally want to consider each purchase you make as an investment, rather than a purchase, and in order to see a return on your investment, your expenses want to be fairly low.
Now, this doesn’t mean you should cut corners and go with, say, pre-owned computers that out-date ancient dinosaurs that once roamed the earth, but it also doesn’t mean you should buy the most expensive computers on the market either. Find out what you need, and look for devices that meet your specified criteria, without any fancy bells and whistles to bump up the price tag.
Hire an accountant
When a lot of small businesses are just starting out, they are wary of spending too much money because they aren’t making money as they are not yet trading. However sometimes in business, as the saying goes, you have to spend money to make money.
When it comes to making an important purchase, hiring an accountant is one of the best business decisions you will ever make. Remember, keeping your books in order is going to be a time consuming, stressful, highly frustrating experience for you; plus there is no guarantee that you will be doing things right.
However, f you hand things over to a professional, they will be able to take care of things for you. A pro accountant will make use of accounting software, they will know how to balance your books, they will ensure you file your taxes correctly, and they will be able to offer helpful advice in the process.
Although by hiring an accountant you are having to pay them for their services, you are also getting a great deal of stress lifted from your shoulders.
Try to build up your cash
This is, of course, easier said than done; if you do have any spare cash left over, experts recommend saving at least 3 months’ worth of operating expenses to help keep you going through the next few months, as the business will most likely be slow to pick up in the early stages.
It is also important to have proper mediums of payment. Remember, statistically, the first twelve months are crucial and if you can make it to two years, you are far more likely to succeed.
Make use of accounting software
Accounting software is incredibly beneficial in terms of keeping your business finances and accounts in order. To manage your books, it’s no good logging into your mobile banking app on your phone each night and scrolling through a list of incomings and outgoings.
If you want to get a handle on your accounts and finances, accounting software is ideal. As mentioned, a professional accountant will almost certainly utilize accounting software, but for times when they aren’t on hand, this software will make life incredibly easier for you.
You can utilize it to track your incomings and outgoings, you can set up and manage your invoices, you can send over payment reminders, plus you can easily manage your client lists.
Yes, modern technology is a wondrous thing in the business world, and with accounting software, this is a prime example of why that is.
Create a budget and stick with it
If you wish to stand any chance of succeeding when it comes to managing your accounts and finances, you must ensure you create a budget and that you actually adhere to it whenever possible. No matter how tempting it is, do not even consider spending a single penny unless it is planned for and can be accounted for.
You need to ensure that you know where you intend for your money to go in advance, so basically this means that you should never make any spur of the moment decisions based on spending which you have failed to plan for. Of course, there will be times when you have to spend money which you didn’t budget for, that is the nature of the beast.
This is where it pays to have saved and built up your cash for the proverbial rainy day. By creating and sticking to a budget, you can keep your accounts and finances in order far easier, because you know where your money is going.
This is where it pays to have saved and built up your cash for the proverbial rainy day. By creating and sticking to a budget, you can keep your accounts and finances in order far easier because you know where your money is going.
Now put these tips into practice and get paid faster today with SlickPie!