The 7 underrated ways to get your startup’s finances in order

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For any startup, the crux of your present and future business plans (mission and products aside!) is income. And getting the financial matters sorted out is certainly something to take care of before your startup gets off the ground. Otherwise, you’re bound to encounter some setbacks in your efficiency.

But unless you or your team has experience in the financial sector, you might not know how to go about handling that income. From finding a computer-based management system to doing your taxes, it can seem a little daunting. The good news though, is that there are plenty of resources you can utilize to help you out.

Exercise frugality

Whether your income is coming from your personal cash flow or your startup was awarded funding from a VC, it’s best to start out with just the basics. Save the fancy office space and in-house chef for when you have a more solid financial foundation.

Have a business plan

Before you plot your first move, have a strategy in place. Not only will it help keep your startup and its finances on course, it can also help you create a case to secure funding through a bank loan or investor.

Set up your banking platform

Do some research before you choose a bank to work with.

If you already have an established relationship with a bank, and they present you with the best offer, then it sounds like you’re good to go. From there, find out about setting up the details of your account (for example, getting checks and credit cards, having a second signatory in case of emergency, etc.).

Maintaining a good track record with your bank is equally important. Should you find that your business would benefit from an extra loan, your reassuring banking history will work in your favor. It may also be a good idea to set up a “rainy day” fund in case the unexpected happens. Business insurance can cover some problems that may arise, but it’s always wise to have cash at the ready if you need it.

Set up your point of sale (POS) platform

For startups selling their products, you will need a system that allows you to make the sale. You’ve got a lot of options here, too. From the traditional cash register to the sleek Square to the ecommerce of Miva, you will be able to find the right fit.

Invest in an accounting system

Your accounting system only really needs to have as much complexity as fits your needs. Consider what volume and variety of transactions your company handles now, and where you see it down the line. While there are free accounting systems out there, you may find that you’ll need to change programs once your income increases.

That will leave you with two options: use a cloud-based service with a monthly fee or buy a computer program outright. The latter may require costly upgrades later, but you’ll have to weigh your options to find which is best for you. Intuit’s QuickBooks is a great, easy-to-use program to try out, and they offer a varied pricing structure.

Hire an accountant

Once you have an accounting system and a bit of growth in your company, you may find that you have the capacity to hire a professional to help get your finances in order. There are plenty of ways to find an accounting service, but one of the most timesaving and cost-efficient ways will be to take it to the web. Oneflare offers a platform in which you can quickly search by variables like location, service, and frequency to find an accountant to fit your needs.

Keep your taxes, audits, and files in order

Familiarize yourself with the basics of good practice regarding financial matters. Be sure to maintain clear and thorough records of your finances, and keep a paper trail where required or prudent. Your taxes will be something to budget for, so prepare for that as you go. For companies earning above a certain threshold, you may be required to receive an annual audit. For details, find out about your local and federal laws concerning small businesses.

Getting your finances in order is crucial to enabling your startup’s success. Without a strong foundation to build on, the startup you worked so hard to realize is at risk. Using the tips provided will be a service to your business’ longevity. And if you find yourself in a bind, don’t panic. There are plenty of web-based or personal resources available to help you overcome the obstacles.