Welcome back, today we are going to talk about top 5 accounting tips to save your time. If you have ever worked before in a company as an accountant, I assume you know these details pretty well. If you haven’t or you don’t have an accounting background and you are an entrepreneur, you may find this post very useful.
Here is the list of top 5 accounting tips for your startup and how can you save your valuable time without any mind bogging issue in the end. Let’s go
Table of content:
- Go Digital
- Tax at the time of sale
- Keep your personal and company account separate
- Make a budget plan for today
Now let’s talk about what they are and what problem we generally face in the accounting part. To be honest, accounting is a pain in the ass and if I never had an option, I’d never manage an account. So to avoid this problem, I am always looking for smart work and better solutions. These points have worked for me like a charm.
(1) Go Digital:
It’s the era of computers and machines. If you are still using those old methods to manage your documents, you live in a stone age. Even managing your data in Excel sheets has gone old. You can find many services (both paid and free) to manage your accounts and data. I have mentioned some links to these websites. I strongly recommend you to check them.
The reason why you should go with this software and websites is that they are easy to use. There are many features like sale inventory, tax management, invoice generation, employee and employer details, product management and so much more. You can easily access all these features in a very effective and low price.
Check out these websites: Waveapps, Quickbooks, Zoho, and Tally. Most of these websites support your country tax and banks, but if they do not, you can search it online or Contact me for more information.
(2) Tax at the time of sale:
Never forget to generate an invoice and collect the tax at the time of sale. You need to keep a tab on the sale and the amount of tax at every unit/product/service sold.
When you sell a product, and you do not mention it in the invoice or your software, it becomes really hard to manage all this in the end. And if you forget a single invoice, it will be a problem when it is time to file monthly/annually/quarterly taxes. You will end up making fake invoices and taxes which is a sign of weak management and a low-class business strategy.
(3) Keep your personal and company accounts separate:
Imagine being in a condition when you ordered a pizza and you do not have cash in hand. And you end paying it from your company account. It does not sound big a deal because you can put the money back into the account any time you want.
Well, it doesn’t seem to be a problem in the beginning but when you get habitual to this, there will come a time when you sit down and tally your expenses and account. Eventually, you get an error. This is where the problem begins. If there is any loss or profit in that invisible money, you will have to settle it from your pocket. This problem gets even more ugly when you find yourself in the situation “When did I use that money? I can’t remember it”.
So it for the best if you keep your accounts separate no matter what the situation is.
(4) Make a budget plan for today:
You are at the beginning of your startup, there will be countless expenses. In my case, these were Food, Cigarettes and traveling. In the beginning, I never thought I was expensive too much. I used to work day and night. Whenever I felt hungry, I just used to order food online and asked the delivery guy to bring some cigarettes as well. But after a week I realized this is getting too much.
Next week, I did the same but I started writing down every single expense. This is when I found that I spent over 200$ on food and cigarettes in that week.
Now the first thing I do after sitting on my chair every morning is; there is a 100$ cap on total expense for every day which includes Coffee and other mini expenses for my employees as well.
So make a budget plan for today and start working on it.
I hope that this post will help you analyze your mistakes and cover up your weak points.
In any case, you can always contact me through this Contact Page or share your thoughts in the comment.
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