If you are about to begin your own small business venture, you will have possibly received endless amounts of advice on money, taxes, accounts and all finance related issues. When you begin as a small start-up, finance can seem one of the more terrifying aspects; and that’s before you’ve even started earning anything!
But with three simple methods to start with, it needn’t be a worry:
Manually Record Your Financial Transactions
I know- who still writes in books these days I hear many of you ask? When it comes to keeping financial records, the answer is many people. If you are a sole-trader, freelancer or are simply going to be working on your own for the first few months or years of your venture, there is nothing wrong with using a paper based method for recording your accounts information, especially if you are a small concern and will only need basic entries.
A ledger book would be a perfect tool for your needs, allowing you to fill in daily or weekly columns for your income and expenditure; the most important items that you will be recording in your first weeks and months of trading.
Enter your Accounting Information onto a Spreadsheet.
Yes, my friend – the good old spreadsheet and I have a great relationship as I am a bit of a fanatic when it comes to recording all kinds of information onto these things! But, if you find you will be at your computer for most of your venture, and you are competent on the spreadsheet, this may be a better way to record your finances. With automatic calculations done for you, and the ability to personalise a sheet for your own needs, this could be a better solution, or the next step up from manually recording.
Buy an Accounts Package
Though they are not essential in the first few months to a year of a new small business, particularly if it’s just you running the show, there is no reason why you can’t begin using an accounts package straight away. With huge knowledge to be gained from accessing such a data system, you could become extremely financially savvy in a short space of time, thus starting your accounts venture off on the best footing from the very first day of your venture!
How about starting at the beginning and working your way through the three simple methods, alternatively implementing all three if you think it would help! Whatever method you choose, make it a priority to keep on top of your finances from the very first day you register your business.