Starting your own company can often be both an exciting endeavor and a scary one at the same time. The scary part for most falls into the picture when it comes to the financial aspects.
Not only will you lose the job paycheck guarantee but now you have an entirely new realm of financial dealings with which to contend, and they will continue to be a daily life issue from this point forward.
To assist and hopefully lower some of the stressors one might encounter we have gathered the following seven valuable tips for getting your startup’s finances in order from the very beginning.
1. Gather all your financial paperwork.
The financial paperwork to gather would include anything that pertains to the business in any manner. This would include items such as monthly obligations, debts, credit card statements, banking records and statements, utility bills, insurance and any other item that requires paperwork or payments that need attention at least once monthly.
2. Protect your assets
Protecting your assets and equity should always mean that the items are being maintained regularly, timely, and properly at all times. This is especially important if you have investors, partners or lending sources so that you will, no matter what, have yourself protected.
A very small number of startups survive and flourish versus the ones that disappear in a very short time.
3. Set up a system for keeping books
The money originally invested, spent, earned and taxed are all items that are detrimental when getting your startup’s finances in order and keeping them in order.
Regardless if you personally set up and maintain a system for keeping books, use one of the many apps available, or hire a company to maintain them, be sure that you understand them. These are your assets and your future.
4. Visit an accountant or financial advisor
When deciding on whom to visit for your business, an accountant or a financial advisor, it is important to have all your financial paperwork intact. Deciding what company or firm to call is often the hardest part.
Websites such as Gumtree, personal and family contacts, or business associates can assist in locating the best person or place to visit first. Visiting more than one accountant or advisor is a good plan. Select the person or groups that can meet all or most of your financial needs, one that communicates well and clearly, and one that has time to work with your business with the utmost care and importance.
5. Start a business banking account
Keeping your business and personal banking separated is important, especially come the dreaded time to file taxes. At tax time, all the business records must be accounted for separately from the personal so by taking the extra step of starting a business banking account right away helps. Starting all of the highly important steps off right at the beginning is all part of getting your startup’s finances in order.
6. Create or update will
Thinking of a will is oftentimes not considered when getting your startup’s finances in order. This is a critical document that should not be omitted. Having a will in place will protect your assets, your property, your investments, and your family.
The tips for getting your startup finances in order have helped many ensure they are business ready. Once all the steps have been completed all you have left to do is go to work, build up your client base, attract new clients, and make lots of money.