• New Wave Accountants

Accounting for Startups: What You Should Track

If you ask anyone working at a startup, they'll tell you that it's a crazy rollercoaster ride full of ups and downs. With that, many are required to wear many hats to ensure that the company stays afloat. However, you must hire a credible accountant to manage all of this regarding finances.

Unfortunately, one of the biggest mistakes of startups is not hiring an accountant to handle their finances. With this, they deal with financial issues, which could be detrimental to their startup's growth.

While having an accountant is the best way to handle your business's finances, some elements would help keep you on the right track with your business's cash flow. With that said, we've listed a few of the things you need to watch out for and keep track of when dealing with your startup's accounting needs. Let's take a look!

Why Is Accounting Important for Startups?

Accounting helps you transparently operate your business, which enables you to improve internal operations as well as help you make your business more attractive to investors. Also, one of the biggest reasons for having a transparent business operation is that it helps you save money and keep a close eye on your spending.

As a startup, you may not be making much at the moment, but you will eventually, so you must create a financial structure that will work for you in the future.

What Financial Items Should My Startup Manage?

1. Bank Statements

With the advances in digital solutions and banking, we can finally say goodbye to bulky bank statements and have a more streamlined approach in collating all financial records. However, reconciling is still pretty significant.

Ensure that you follow all your bank statements for each month, check your balance, bank fees, and more to avoid errors and penalty charges.

2. Credit Card Statements

As you advance on your startup, you'll eventually realise that you'll need credit cards for any expenses that are too big for your startup to handle without going over your budget or for unexpected expenses.

However, remember to track all your credit card statements so that you know you're staying within your budget. This will help your accountant ensure they're creating an accurate report for your finances to help with business decision-making.

3. Payroll

Hiring a team is a big step for your startup, as you want to ensure that you're paying your team fairly and tracking all payroll expenses is another critical aspect to managing your startup's finances. You'll want to ensure that you're paying your employees the agreed amount at the agreed time, and that your employees are paying their taxes correctly.

4. Invoice and Proof of Payment

By tracking your invoice and proof of payment, you'll have a detailed report of all the money that comes in from all your sales, and you'll be able to compare this to your expense report to see your profit and loss.

This will help you and your accountant create a strong financial strategy that will support your startup's growth.

The Bottom Line: Work with a Trustworthy Accountant to Help You With Your Startup's Accounting Needs

Accounting is an essential aspect of running a successful business. It's a time consuming and complex process that needs to be properly managed. On top of that, accounting needs to be done in a timely manner, and there's constantly a new development or change to consider.

Because of this, it's worth working with an experienced and trained accountant to ensure that all reports are accurate. With their help, they'll help you stay on track with your startup's financials and guide you through your business's goals.

How Can We Help You?

New Wave Accounting houses some of the accountants on the Gold Coast, so get in touch with us for all your bookkeeping and accounting needs. From financial planning to bookkeeping, taxes and accounting—we've got you covered.

If you're looking for an accountant to help manage your startup's financial needs, reach out to us today!

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