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Accounting for Startups: Tips from GreenRope's CFO
If you are like me, the numbers side of running a business is pretty daunting. As intimidating as business accounting may seem, it is a very critical part of running a company. It is especially important when starting a business. You must start off right to ensure successful bookkeeping in the future, and for the life of your business.
So, whether you are a numbers person or not, GreenRope’s CFO has a few tips to help you establish healthy bookkeeping habits!
Trying to keep track of all your paper can get messy. Find an accounting software that works for you. Keeping things digital is easier to manage, and will make you more efficient and productive in the long run.
GreenRope recommends any of the Intuit QuickBooks bookkeeping software.
Keep on Tracking
Track all of your costs, and don’t forget to keep track of your time. Time is money, afterall. Do not let anything slip through the cracks. Tracking assists with budgetary constraints, and ensures you know where all of your money is going, including hours worked. Whether you bought a new computer, hired a developer, or had a lunch meeting with a potential client, all of this must be put in the books. You always need to know where your money is going, especially if it isn’t tangible.
Never Mix Business with Pleasure
In the beginning, too many business owners mix and mingle their personal finances with their business finances. Stay clear of this mistake. When it comes to tracking your expenses, especially for taxes, you are going to want to know precisely what was a business expense and what was personal. If you start mixing the two, lines blur, books get messy, and so do your finances. Not the best way to start off.
Don't Blow it
Invest the money you make, don’t just go out and spend it. Yes, it is exciting to make your first dollar, but invest it right back into the company. That way when you hit a rough patch you have a nest to pull from. If you go out and spend every pretty penny, you will find yourself investing your personal finances over and over again. You want a sustainable business, not a money sucker.
Starting a business is exciting, but building a foundation, especially in the finance department is key. Follow these tips from GreenRope's CFO, Keith Richmond, and you are well on your way to successful bookkeeping.