How to start a company from scratch

keep track of a business

Do you want to start a business but do not know how to keep the accounting of this? with these simple tips to keep well the accounting of a business will have the clearest ideas and you can launch yourself to open that business that you’ve long desired.

We can consider an entrepreneur as a dreamer, a person who, being awake, is thinking in different ways of making money, as well as in the automation and optimization of processes within his business.

How to start a company

Photo Pixabay

Some risk creating a large company from the outset because of the extensive experience they have had in running similar businesses. Others however prefer to start as a small or micro enterprise.

Whatever the case, you must be working within the legal framework, otherwise, you run the risk of being fined, or even, the business may be in danger.

Not knowing the law is no excuse for not complying with it, so it is convenient to have a very good basis from the beginning to avoid any problems in the future. It is for this reason that one of the fundamental points to which we must pay attention is in accounting.

Many entrepreneurs are the ones who leave this point aside. Some have little knowledge of the subject, and others hire professionals to take care of this specific department. Unfortunately not everyone has the possibility of hiring a third party.

So, if you want to keep your own company accounts, I recommend you to pay attention to the following tips to keep a good business accounting.

With these simple business accounting tips you will avoid unexpected surprises.

Put these tips into practice and check the results.

Uses specialized accounting software

In the past, businesses used a completely manual system to keep accounts. Everything was done by hand, with pencil and paper. If everything was done in the right way, excellent order was maintained.

But unfortunately, when a system depends on one hundred percent of people, this system presents faults that can become serious.

Thanks to the evolution of technology and computers, programs have come to be created that specialize in accounting.

They are systems that compete both the inventory and the sales invoices generated in each purchase, with which fewer errors are made, and also requires less time and labor to manage the accounting of a business.

Uses folders of different color and well identified

Some businesses do not have the possibility of having an automated computer system to keep their accounts in order.

Not only that, but it also doesn’t have the resources to pay a third party to run this department, so the old manual accounting system must be put into practice.

If this is your case, then I recommend that you make as many folders as you want to manage items or variables. For example: One for billing, one for inventory, etc. Also, keep them well identified.

An excellent way is to give each folder a color. And in case you can’t identify them by color, then try to add the relevant legend to the volume of each one, as well as to its cover.

Pay close attention to your inventory

Every business needs a commodity, a product that it will sell to its clientele, and that is the basis of the business. In a supermarket, for example, groceries and food in general are your products.

These need to be sorted and accounted for, that is, each item needs to carry an inventory, object or product that you sell.

The inventory is of excellent help for any business, because with it you are able to know how many products you have sold, as well as know how much you still have left to sell, and when you need to replace all that merchandise to not stay at zero and lose valuable customers. Having an up-to-date, well-organized inventory ensures that your business doesn’t stop.

Consider your employee workforce

Employees are the heart and soul of every business. They are the ones who do the necessary work every day to keep your business afloat.

But let’s be honest, they wouldn’t go religiously to work at your business every day just because they like you. They need to eat, so they need money, which you will provide according to the time they work.

Having your staff well defined guarantees having a good order, a decrease in labor problems, and of course, an optimization in terms of the production process.

If you want to have a tighter control of your employees, I recommend that you add in your company a biometric control system, with the cal you will know exactly the exact time that enters and leaves the employees.

Preserves even the smallest bill

Any company or business, regardless of its size, requires for its operation additional services, products or equipment.

Every company must pay for water, electricity, telephone. Even if you are the only one in your company, you must have transportation expenses.

Each one of these services has a cost, and at the moment of paying them, the entity emits you an invoice, it is something that we all know.

It doesn’t matter how small a bill is. Whether you’re fueling your car, buying chewing gum at the store, or renting heavy equipment, each and every one of those invoices must be added to your accounting in order to maintain accurate order.

Petty cash – Business

In every business there are good days and bad days. It is normal for a company to have unforeseen events or emergencies. For this type of occasions they have created what is known as “Caja Chica” (Small Box).

This petty cash is nothing more than a reserve of money that the company has to cover eventualities, or small things that would be absurd to go through a big bureaucratic process.

For your petty cash you must determine a certain amount of capital, which you must replenish as you use it. The amount of money is determined by you, based on your experience and capital flow.

But be very careful, because if you don’t know how to manage it well, then you will have a serious capital flight problem.

Payment – Business

Payments are a fundamental part of any business. Even in the big ones, a department is appointed to handle accounts payable. These payments range from services, to the same suppliers of equipment, material and products.

To make payments accounts with multiple options. A very common one is check payments that are already on the verge of extinction.

Others have evolved and prefer bank transfers. Even today there are so-called electronic purses, with which you can pay online without risking your personal data.

Try to know which method is the most suitable for each situation. Remember that each represents a different commission, just as accreditation times can vary substantially.

Being an entrepreneur is not your easy job. You usually start out as a rookie and, as you learn in the process, the business evolves. This often involves headaches.

But don’t be afraid to make a mistake. You won’t learn anything if you’re only afraid to make mistakes. Maybe in your first few days you’ll have a few problems with the IRS. Don’t worry, just try to solve it quickly.

Don’t forget that a fundamental point to make your business evolve is to cultivate your mind. Be aware of new courses and laws that may shake your business. And don’t forget to pay a lot of attention to these tips for good business accounting.

You May Be Interested:

Overcoming Test Anxiety

How to control anxiety and panic attacks ?

Tips for traveling to China Tips and recommendations

Facebook Comments