Bookkeeping for Startups 104
As the owner of a startup, you are going to get advice from every possible direction. From college friends to your business partners to your mom, everyone is going to want to offer you a quick tip or idea. While these people mean well, it is possible to have too much input in some cases. You likely have a clear picture of where you would like to go with your company, and it will be up to you to make that vision a reality.
With that in mind, we would like to add our name to the list of people giving you advice! Of course, you are free to take or leave this advice as you see fit. The 11 finance tips that bring success listed below are each designed to fine tune the financial side of your business. It is hard enough to succeed in business, you don’t want to make it even harder by making basic financial mistakes. Use these finance tips when applicable and hopefully, you will be on the fast track to success.
#1 – Every Dollar Has a Purpose
#2 – It’s Not Going to be Sunshine and Roses
#3 – Commit to Very Little
#4 – Never Exaggerate the Books
It will not do anyone any good if you get into the habit of ‘massaging’ your numbers to make them look as good as possible. Your financials are what they are, and you need to be open and honest about them—especially with potential investors.
#5 – Cash Flow is King
Did you know it’s possible to have great sales numbers and still go directly out of business? Well, it is. If you don’t have a good handle on your cash flow, you can easily find yourself closing up shop despite the amazing potential that was hiding within your company. Learn the basis of cash flow early on and always pay close attention to this part of your accounting situation.
#6 – Make Finances Your Focus
#7 – Be Realistic at the Start
#8 – Don’t Rush to Pull Profits
#9 – Good People Are Worth Good Money
It is true that you want to save money on labor when possible, but you also want to invest in the kind of people who can help you achieve great things. As long as they fit in your budget, don’t be afraid to pay quality employees what they are worth.
#10 – One Step at a Time
#11 – Embrace Technology
Services like Botkeeper are valuable to startups because they allow the company to save both time and money, two things that there are never enough of within a new business.