Starting a new business may be very exciting, but it can also be challenging and frightening as well. Whether you are a partner or a sole proprietor, you’ll have to take on many roles and will need at least a basic knowledge of a variety of business functions if you want to be successful and make it past your first year. You might very well be an expert when it comes to the product or service offered by your new business, but that’s not enough to make your start-up a successful one.
Before you register that new business name, you will probably have to come up with a plan proving your idea is a worthwhile one. Whether you save your own money, apply for a small business grant or bank loan, or have investors, a business plan is your first step to making sure your idea is financially viable.
A certain amount of your funds will go to the creation or purchase of inventory and supplies. Then there is your physical location – a storefront or office, rent, utilities and so on. And advertising. And marketing. And payroll. A business plan ensures that you have the right amount of money devoted to each facet of your new business and that you will continue to have funds in the future when you need them.
The Business of Taking Care of Business
Admitting that you know nothing about accounting or bookkeeping could be your first step on the road to success. Having a degree in business and marketing is helpful, but it may not be enough to get you through the tedium of those daily finances. Besides, aren’t you busy getting customers and promoting your product or service?
You will have a lot to take care of setting up the structure of your new business or company. You will need marketing and advertising so that people actually know about your business. You have to create employment ads, interview and hire employees. You have to furnish and decorate your location. You may have appointments at the bank, the government office for small businesses, or meetings with your investors. Hiring an accountant to set up all your finances while you are establishing your business can save a lot of time and avoid costly start-up errors.
Accounting and Bookkeeping Structure
Having an accountant set up your bookkeeping saves valuable time that you could be spending in other important areas of your start-up. Your accountant will get to know you and your business and devise the best system that will be both easy and accurate for your purposes. Once the accounting software is in place, your accountant will show you, or your office staff, how to manage the details of all your financial transactions. After the initial set-up, managing your daily financial tasks will get easier with every successful day.
Accountants are experts at what they do so they’ll know all the regular tasks that need to be completed, and how often. Creating an accounting system that takes care of the unique needs of your new business ensures that nothing will be forgotten. Trying to create your own system without the help of an accountant can result in last minute panic when you realize that you’ve forgotten things like deducting HST, or filing your employee’s tax forms.
The Future of Your New Business
An account doesn’t just take care of your finances now, but also puts checks and balances in place to prepare for future financial transactions. As your business grows, your accounting needs may change. A good financial plan can also help you grow at a healthy rate – growing too rapidly can be just as detrimental to your endeavor as no growth at all. Your accountant can help you set benchmarks that will help you determine if your business is thriving the way it should be. This will help you gain insight when making future decisions affecting the growth and direction of your business.
Creating a successful business begins with foundations based on a solid financial structure. Taron Bookkeeping and Consulting can make sure that you start off right with a custom accounting system that you can learn and maintain easily through the first year and on towards future financial success.