Starting a business is more than just focusing on offering high-quality products and services and promoting them. You also have to pay attention to your revenue and expenses to avoid poor financial management. Due to this, you need to prioritise proper accounting.
The thought of setting up your accounting system might seem daunting, especially if you don’t know what to do and where to begin. For your guidance, here are some basic steps you have to take to get your business off to a good start:
Choose your accounting platform
Keeping track of your accounts is now easier than ever because of the wide variety of tools you can choose from. Best of all, many of them are low-cost, easy to use, and ideal for small businesses. When choosing an accounting platform, remember that it is not a choice you should make lightly. Keep in mind that you will heavily rely on it for tracking your finances.
Therefore, look for an accounting program with the functions you need, including invoicing, sales, and expense tracking, payroll processing, and more. You also have to consider whether it fits your budget, provides good customer support, lets you connect with your bank account, and secures your data.
Organise your records and balance your books
The foundation of your accounting is the records of all your business transactions, so you have to keep and file them in an organised manner. You have to record all the money that goes into and out of your business account, including the amount received by your business for any reason and any sales tax collected, in reliable ECommerce accounting software. Your records must also match up with your bank statements monthly.
You can use a simple filing system to set up folders for every month for a year. It should have separate storage for your income receipts and expense receipts. You are also required to do your regular accounting processes every month, quarter, or year.
Managing your finances can be challenging since you have to be consistent with bookkeeping while tending to other obligations. Due to this, now is the best time to partner with a reputable accounting firm. This way, you are assured that you have experienced accountants working by your side to address your other accounting needs. You will also make your business more profitable and save more money in the long run by avoiding tax problems and understanding accounting practices better.
Undergo basic accounting training
If you decide to address your business accounting needs on your own, get some basic training in accounting. You can check for tutorials from your cloud accounting software provider. This will let you avoid the common mistakes many business owners make and help you get started on the right foot.
Accounting is necessary to track and manage your money effectively, especially during your business’s early stages. By following the basic steps listed above, you can implement proper accounting and make better-informed decisions that can help you grow your business.
If you need top-notch ECommerce accounting services, reach out to The ECommerce Accountant. We specialise in accounting for online stores, service-based businesses, and influencers in Australia. Book a free strategy session now!