Apart from the people, a business’ systems act as a backbone. Give it the right ones at the right time and you’ll have a commercial entity that will thrive and withstand most of the storms that come its way.
Most entrepreneurs look forward to setting up management control systems. This includes having certain monitoring tools and financial planning modules in place to be more aware of what’s going in the business.
Because having accurate company information handy (in an organized manner) is crucial to correct decision-making, it makes sense to set them up as soon as possible. This especially holds true of accounting systems because it is important to be in the know of the financial health of your company.
In this post, we look at how to build an accounting system in a startup firm.
1. Use What You Know
It makes sense to keep all business related documents such as bank statements, invoices, bills, receipts, tax papers, as well as legal and governmental documents concerning your company safely. Engage in the services of a tax advisor for this matter as he/she can advise you about the documents which need to be kept permanently, and the ones which can be disposed of after a certain timeframe.
2. File Your Documents
It is important to have a filing system in place, with a separate file for each kind of financial document. These files can be stored either physically and/or virtually. Have a file for all documents that require action, and once finished, shift them to their individual files.
3. Decide Your Accounting Needs
Depending on the intricacies of your business’s financials and your own comfort level, decide who will handle your accounting needs. You could do so yourself, hire help, or outsource the entire gamut of accounting activities to a third party (i.e. a company or individuals who specialize in small business accounting).
Read more from Business 2 Community