If you’re about to start a new business, you’ll want to make sure that your accounting systems are ready to go the day your doors open. Not only do accounting systems help you monitor your revenue, expenditures, and financial growth models, they can also help guide your decision making.
Below are just a few of the tips you can use to develop an accounting system.
Talk to an advisor to learn which documents you should start gathering
Your CPA will likely advise you to keep all of your records-related documents in one place, regardless as to whether that’s in a filing cabinet or in a secure portal in the cloud. Sample documents include invoices, bank statements, receipts, legal and governmental documents regarding your company, and tax papers, among others.
Be sure to ask your CPA how long you need to hold onto various records before you can dispose of them.
Develop a filing system
Your CPA may also advise that you set up separate files for your various types of financial documents (i.e., expenses and receipts in one file, tax documents in another, etc.) You may also want to consider establishing an “action” file, that includes tasks that require your immediate attention. Once these tasks get crossed off of your to-do list, you can sub-file those documents into the appropriate folder.
Choose your accounting method
When you start to receive income, you’ll need to record it as cash, incoming credit card payments, or checks received. If you have questions about the benefits of and/or differences of these methodologies, be sure to talk to a licensed CPA.
Also, of note, is that you’ll want to open a business bank account. Be sure to link this account to whatever software you plan to use to manage your business accounting. Examples of business accounting software include QuickBooks, Zoho Books, and FreshBooks, among others.
Setting up and managing accounting systems can feel a bit overwhelming, but when you work with a licensed CPA, it doesn’t have to be. For more information on why you should establish your accounting systems early on, and the steps you can take to ensure your systems are managed properly, we can help. Call the offices of Hughes, Snell & Co., PA today to speak with a local expert. Regardless as to whether you need help with bookkeeping services, financial planning services, or outsourced CFO services, we’re happy to help.
What are you waiting for? Call our office today to get started.