As a start-up entrepreneur, one of your top priorities is to organize your accounting system to manage your cash flow and prevent financial obstacles.
Figuring out how to set up accounting for your start up can be daunting when you’re starting out, especially when your plate is full of other tasks and responsibilities. But it’s essential to the foundation of building a profitable and sustainable business.
To help, I’ve put together this accounting checklist for start-up entrepreneurs:
1. Register Your Business Name
2. Set Up Your Company Structure
When setting up a new company, you must first decide whether you’ll be a sole proprietor, partnership or an incorporated company. Be sure to set this up correctly the first time as it can be costly to change things down the road. For example, if you need to incorporate your company, you’ll need to consider variables such as share structure and family trust for asset protection.
To help you determine the best structure for your company, visit the Canada Business Network to learn the differences between each.
3. Set Up A Business Bank Account
Tracking your business income and expenses separately from your personal will make record keeping and tax filing at year end easier.
4. Register For Business Accounts
When starting a company, be sure to register for the accounts you require to run your business including your business number, HST, PST, payroll and WCB. Setting them up right from the start will prevent extra work in the future. Once your business accounts are set up make sure you submit payments on time, as the penalties for late or missing payments are high.
5. Set Up An Accounting System
An effective accounting system is essential to managing the money flowing in and out of your business.
With an effective accounting system in place, you’ll be able to stay organized, track your profitability and make adjustments proactively before year-end.
Two of my favorite accounting systems are Sage 50 and QuickBooks On Line. Sage 50 is a desktop accounting system. QuickBooks On Line is a cloud-based accounting solution you can access anytime from anywhere you have an internet connection. With both of these systems, you can easily track your expenses, sales, and analyze your financial position.
6. Set Your Goals
Continuously working on your success mindset is just as important as accounting software and government forms.
Setting clear and measurable goals is critical so you know what you’re working towards and why. Writing your goals down, keeping them in front of you and having an accountability partner will help you stay on track to achieving them.
We’d love to help
If you need assistance with setting up your accounting system or to book a free consult to help you get your business on the right track, contact us by email or phone at 519-434-0449.