There is nothing quite like launching your own startup. The thrill of creating something from scratch and watching it grow is exhilarating. But, along with that excitement comes the harsh reality many entrepreneurs face in managing their business expenses and tracking their finances.
The Quantify Group is here for you if you are struggling to keep up with your accounting and are looking for a trusted accounting firm to help. We offer startup bookkeeping services for early-stage businesses looking for help with their accounting and bookkeeping, ensuring their financial reports are accurate so that they are able to make strategic business decisions with the right information.
Not sure where to start? We are here to provide you some clear tips and tricks to get your business’s financial health on the right track.
Staying Organized with Your Financial Records
For many startup owners, basic bookkeeping tasks can feel like a daunting task. And rightfully so! If you are not trained in accounting methods or bookkeeping, managing things like your monthly financial statements and balance sheet can be like learning a new language.
But remember, as overwhelming as it may seem, by staying organized, you can minimize a lot of stress.
We recommend setting up an organization system that helps you refer back to all your financial statements and financial transactions all in one place. This includes invoices, receipts, certain expense deductions and tax records. Keeping your books regularly updated can significantly help prevent the buildup of paperwork and save you from a potential financial headache.
Having an organized system in place will also help if you decide to hire an accounting firm online bookkeeping service, like The Quantify Group, to help manage your monthly financial reports. With a clear system in place, a third-party bookkeeping service can come in and quickly get to work on the financial record keeping you’re looking for.
If you are not sure what kind of organization system to put in place, you can consider getting a cloud-based accounting software to help. These platforms can simplify the process, and you can access your financial data anytime, anywhere.
Setting Up a Realistic Budget
Once you have established and organized your financial records, the next step is to focus on your balance sheet, income statement and cash flow statement.
Many business owners think that a budget is a hard and tough constraint in their business. But, it should be considered more of a roadmap. It is a guiding path to help you chart your company’s financial journey, so you can confidently achieve your goals.
When you are starting with a budget, take your income at the top and subtract your fixed costs. What you have left is your discretionary budget.
But do not just allocate this based on this simple calculation. Consider learning more about accrual basis accounting or identifying an accrual accounting using a system that works best for you. Take into account things like your sales cycle, your business structure and how your cash flow can change each month.
Once you dive deeper into your small business accounting needs, you can understand what kind of bookkeeping system makes the most sense for you.
Getting expert advice from an accounting firm, like The Quantify Group, can help take the guesswork out of how much cash you will have on hand and how to estimate net profit margin ratio.
As a startup founder, understanding your cash accounting and exactly where each penny is going, and how it is benefiting your business is crucial to your long-term success!
Regularly Monitoring Cash Flow and Projections
“Keeping the pulse on your cash flow is essential.” How many times have you heard this? There is a reason it is such a common mantra in startup accounting basics.
Regularly monitoring your income and expenses can prevent a cash shortage, which is a common stumbling block many startups face.
Remember, cash basis accounting is not only about tracking the money that goes in and out. It is about analyzing the patterns and using this data to make projections. These predictions will allow you to plan better and make informed decisions about the future of business finances.
While incorporating bookkeeping software can help, adding in professional insights from an accounting firm, like The Quantify Group, can give you the confidence you need to ensure that your financial statements are accurate and your accounting method is working for your business.
Startup Accounting and Tax Services
When it comes time to file your business taxes, many small business owners break out into a cold sweat.
And while mistakes in your tax filing can lead to penalties, with the help of payroll services of a professional accounting firm that specializes in tax services, you can avoid that annual dread and file your taxes without the worry of an audit or errors.
The Quantify Group can help with your tax planning and tax prep, like gathering all the important documents, ensuring you are aware of your tax obligations, and helping you keep your records updated throughout the year. Accounting software can only take you so far when it comes to tax filings. Let a professional group provide you the added support and insights you need.
Looking for startup accounting services? Quantify Group is here to help!
As a startup business owner, all of the pressure to manage your finances is on your shoulders. But it does not have to be! When you are looking for outsourced accounting firms, work with a trusted team like The Quantify Group that understands the unique challenges startups face when it comes to their financial standing.
When you have an accurate and efficient accounting system, you can make smart financial decisions that help your business grow.
Not sure where to get started? Give Quantify Group a call.
Our goal is simple — We want to help you reach peak profitability by leveraging your company’s data to your advantage.