Starting a new business can be a daunting task! How to start? Where to Start? What product or service to offer? How much money do you need? The list goes on and on…but, I would suggest before you start any business, you implement a proper bookkeeping and accounting system/software that will guide you to success!
Many entrepreneurs have a great idea and want to act quickly before they lose out on an opportunity. Most do so without preparing a proper business plan or projections that will allow them to plan accordingly for the needs of their business.
An opening balance sheet will allow you, as an entrepreneur, to understand how much cash you will need to inject, how much equipment or inventory you will be buying, and all the expenses related to your business. This is the most important aspect of any business:
How much do I need to start the business? And how much do I need to keep the business going?
The answer to these questions will vary based on multiple situational factors — including what type of business you start, how much inventory you need on hand, and how much in expenses you will have over the next six months. These key factors will determine how much capital you will need out of the gates.
Once you’ve modelled an excellent business plan and figure out your financials, you’ll want to lay out the foundation for good bookkeeping. It’s amazing how many small businesses we see scrambling at tax season because they simply haven’t kept track of their books.
The best thing you can do is store your information in a proper accounting software, from the beginning, so down the road when you are doing your business taxes, all of the information will match and balance.
In addition, you can input your projected revenue, cost of goods sold, expenses and profit into the accounting software, to provide you with targets to hit on a month to month basis, and a guide on how to be successful. I always say, your business plan and projection are like a book of faith. Some words may change over time, but the message stays the same all the way through.
Our sister company, Phoenix Management, uses Quickbooks Cloud software for all new clients. The software is excellent for start-up businesses, and even well-established organizations looking to manage their bookkeeping and accounting from a cloud-based software. Their team is Cloud-certified and they train all clients on how to effectively use the software.
Any entrepreneur who is not sure where or how to start in setting up their bookkeeping and accounting software can contact us. Phoenix team of professionals will help you implement Quickbooks Cloud software to achieve your first step toward success. Drop them a line today to see how we can help.
