5 Key Accounting Tips for First-Time Entrepreneurs
SEPARATE BUSINESS AND PERSONAL EXPENSES
Most new entrepreneurs merge their play money with their professional money when they start off. That can lead to a lot of confusion down the road.
INVEST IN ACCOUNTING SOFTWARE
Accounting software like QuickBooks or FreshBooks helps small business owners track revenue and expenses, invoices and receipts, vendor and employee lists, all with the optional accompaniment of neat, colourful labels.
MAKE FINANCIAL PROJECTIONS
Many entrepreneurs fail to put a number to the money they expect to make. Financial projections are an essential tool to help guide your business along with a healthy growth path.
PAY YOURSELF FIRST
A recent survey by BMO Wealth Institute found that 60% of Canadian entrepreneurs are concerned about their ability to retire on their savings. Most overlook the importance of setting aside money for the future so they can focus on more immediate needs like paying debts and funding their business.
HIRE A BOOKKEEPER
According to a recent Sage survey, only 23% of new businesses were likely to hire an accountant. Accountants can save you money by organising your cash flow and finding extra tax shelters. They can even propel business growth by interpreting your numbers for growth and profitability opportunities.