Best Techniques of Bookkeeping for Startups
Bookkeeping for startups is extremely important because when you start a company, you are insanely busy with so many things going on.
You are busy enough that you don’t know where to keep the record and how you are spending company money. This guide is designed that helps you in becoming a black belt in managing company money.
Handle papers:
The first technique of bookkeeping is paper handling. For this purpose, you should buy a plastic-made folder with an expandable feature. Keep this folder within your arms reach, so whenever you need them, there are near you, and you can access them any time. It is recommended to label each of the tabs in the folder so that you can easily cover all the instances of the paperwork. It includes:
- Supplier quotes
- Supplier invoices
- Client quotes
- Client invoices
- Expenses
- Government documents
- Bank statements
Select a day in a week, and on that day, open your mail. You should print any of the emailed PDFs and then file this paperwork in the file under the correct tab. Prevent messing up your desk with loads of papers. Organize each and every piece of paper as it will make your life easy and comfortable when you want to access any of these papers.
Keep a record of profit and loss:
You don’t need to buy expensive accounting software when you can do all your work in MS Excel, and it is enough for a service-based business. All you need to do is set up two sheets in MS Excel. In one sheet, keep a record of expense items and in the second sheet, keep a record of income. By keeping these records, you can easily calculate the profit and loss on a monthly basis.
Make healthy relations:
Set a particular date and a day in your calendar to do books each month. On this day, put aside all the work and duties and make sure that you have paid stakeholders on time. This way, you can make a healthy relationship with the stakeholders and other workers in your company. Try to hire an agency that can brand your company and let you receive triple back in reputation.
Finance advisor:
When it comes to all matters of money, a finance advisor plays an important role as he is a great asset to the team. So whenever you use the credit card or reach for the cheque book, he will come and start interrogation to check your decision to purchase.
So these are one of the best techniques of bookkeeping for startups that can help you to keep a record of all the finances of a startup company.
