Launching a company is usually a muddle of craziness. The owner is running between different activities, and trying to keep up with everything on his own. There is rarely an office location these days, which makes it even harder to stay organized in many ways. Those first sixty days of a business are pretty critical.
Making sure that the business owner can focus on growing his business without having to stop to focus on learning accounting.
Choosing the right tools…
However, before the business actually launches, it’s critical that the business person makes an investment in accounting or bookkeeping software. There are several that are good options and they vary greatly in price. However, picking one is very important to the long term success of any business venture.
Taking a few moments to set up the right software is important, and will help you in the long term. None of the programs referenced on this website are anything other than easy and intuitive to use. Just the same, give yourself an hour or so to set up the logos, connects securely to bank accounts and other items that could cause a breach of security.
Think about automation
Once you make those connections, you can go on to work and come back tomorrow! The software will set up the data it needs and next all you have to do is make sure you enter cash expenses and revenues. This will help you stay trued up.
Without this arrangement, your business will not be able to look back and determine who gets reporting documents like 1099s.
You will not be able to easily identify the clients who have been the most valuable to you all year long. And finally, perhaps most importantly, keeping your accounting system in a state that allows you to understand the business means you are far less likely to be taken advantage of.
Here’s James White take on the importance of bookkeeping for every small business: