Startup Accounting: 5 Tips to Help You Get Started

Startup Accounting - 5 Tips to Help You Get Started

Starting a business is exciting. But when it comes to startup accounting, handling your finances can be scary. Without sound money management, your new business could struggle.

Maintaining financial health doesn’t have to be hard. Understanding the accounting basics for startups can help you track your new company’s progress. And, you can make wise business decisions from the accounting records you compile.

Patriot Software Inc. created an infographic with five startup accounting tips to get you started before your business takes off.

What’s on the infographic?

Can you answer the five questions below? If not, follow these tips for startup accounting to get your new business’s books on track from the start.

1.  Do you know your target customers?

You might think saying “everyone” is your target customer will bring more profit. But, a larger target market does not necessarily mean more profit.

Narrowing your target customers down helps you attract customers who will spend money at your business and continue to come back. A niche audience is the starting point for growing your business.

2. How much will you spend?

Startup costs add up fast. Overspending causes cash flow problems. Spend too much, and you might send your company into a hole that requires serious business debt management. As you build your business, you need a thorough plan to guide outgoing funds.

3. Where will you get initial funding?

You might need five dollars to start your business, or you might need one million dollars. No matter what it takes to get your startup running, a strategy for finding and managing capital is key.

4. How will you record your money?

From tracking progress to filing forms, you rely on your startup accounting records for basic business functions. An efficient accounting system can help you track your business’s financial health and avoid penalties.

5. How will you stay legally compliant?

There are many local, state, and federal laws you must follow. You don’t need to be a law expert, but you do have to know how to stay compliant. You should learn the rules to follow, forms to file, and taxes to pay.

Check out this infographic for the five accounting tips for startups tasks you should tackle. These tips will help you make important decisions as you grow your business.

For more accounting tips and training, visit Patriot Software’s small business accounting blog today!

5 Accounting Tips for Starting a Business

Please visit Patriot Software to learn more.

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Written by Mike Kappel
Mike Kappel is president of Patriot Software Inc., a developer of online accounting software and payroll software for US small businesses. Patriot Software is one of five successful small businesses Mike has launched in nearly 30 years.