Accountancy tips for new businesses

Posted on: 19 November 2015

Provided that you have not qualified as an accountant, the world of accountancy can be intimidating and overwhelming to those who are involved in starting a business for the first time. Especially if you are young, it can be a very confusing topic that you have little to no experience with handling yourself. You may have never had to file a comprehensive tax return yourself, thanks to being employed by a corporation that looks after most of that stuff for you.

You shouldn't put off learning about accountancy on the long finger; you need to develop good habits from the beginning. Anybody can get audited and the last thing you want to be is unprepared. Once you have the basics down, it will be a large weight off of your shoulders. Here are some tips to keep in mind when starting a business and dealing with accountancy practices.

Start strong

Just like you check your emails every single day and you have periodic inventory reviews, dealing with the accountancy of your business needs to be a continual and consistent activity. To make it easier to remember, set a reminder on your calendar for the days on which you will update and review your accounts.

While it is completely up to you on how often you should conduct these reviews, you should aim to do this at least once every month. It can build up quickly and cause stress and anxiety if you do not stay on top of it.

Know the language

Accounting has a lot of complicated and confusing terminology that will not be clear to those starting off. You need to take the time to learn the relevant lingo so you can comprehensively understand and deal with the accountancy of your new business. There are many resources that you can utilise, whether it is online or through books, in order to get this terminology comprehensively understood.

Use suitable software

In the old days, people used to do their accountancy activities by hand. While this may still be the norm for many individuals, businesses have many moving parts that need to be accounted for, and the sheer volume of these transactions need specific software to deal with. Always identify software that suits your specific needs. Research what types of software others in your industry use to get a better idea of what specific features you should look for.

The location where you do your work needs to be kept in mind. This means that you should tailor the software to whether you regularly work on a desktop, work from mobile locations or use cloud based platforms. 

For more information and professional advice, consider talking with or hiring certified accountants

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