Accounting Advice for New & Small Businesses

Starting or running a business is a big responsibility. I remember starting my bookkeeping business, my to do list seemed endless. When starting a business you should have contemplated questions such as, 'How will I manage my business?', 'How will I grow my business?', 'Do I have enough starting capital?', 'How will I market my Business', 'Will I need a website?' and I could go on and on. Hopefully by reading this post I can answer some of the accounting and finance related questions you may have and share some experience and insights...

Do I need a Business Plan?

The answer is Yes! A business plan provides the needed information you need in order for your business to succeed. It is generally not enough to believe you have a good business idea and expect success. A business plan will help you identify how much cash you will need to start your business, identify possible weaknesses in your business, help make plans for sales, ensure there will always be adequate cash to meet business needs, project profitability of the business and will help you set business related goals. I have seen many businesses 'come and go', those that generally are still trading after 12 months are those that planned through business planning.

If you need a business plan, The Bookkeeping Master is happy to help -

If you want to learn how to create your own business plan - click here

Will I need Accounting Software?

For most new and small business accounting software is not needed. In the beginning there are very few financial transactions, Microsoft Excel or a similar package will suffice. Once a business grows it can save time (and money!) to purchase accounting software. Most software is very cheap especially online accounting software.

Learn how to keep accounts using Excel - Click here

The Bookkeeping Master recommends KashFlow online accounting software - Click here for a free trial

Will I need an Accountant?

Unless you feel comfortable calculating your own tax and filing your tax return, you will likely need an accountant. Most towns have a local accountant and you can find loads of accountants online. As always, find an accountant with good recommendations. Once your business grows or goes limited, you will need an accountant.

Will I need a Bookkeeper?

This depends greatly on your own bookkeeping abilities and what you wish to be spending your time doing. It is very helpful (sometimes even essential!) to have monthly management accounts (profit statements, sales figures, etc.). Doing so helps you analyse where your business is and what needs to be done to get your business to where you want it. If you are comfortable doing your own books then do them, sometimes business owners would rather spend their time growing the business so they outsource. Also, sometimes the accounts are placed low on the priority list and months pass with no management accounts.

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