You’ve done what so many people venture out to do each and every day: fund your startup. That’s great! In fact, it’s quite amazing. Starting your own business, while common, is not something everybody can say they have done, and for that, at Clifford, Ross, Raudenbush, & Cooper, LLC, we applaud you. We also want to share these financial tips about running your own startup and how working with an accounting firm can help you continuously be successful.
Financial Tip #1: Plan Before You Launch Your Startup
This tip is common sense; of course you have to plan ahead. The big question here is how do you plan ahead? How much do you need, what should you save for, and what big finances can you expect in the beginning? Well, this depends on your startup itself. Will you need a physical space for your startup or is it all virtual and out of your home office? Do you have a website? How many employees do you plan to hire?
It’s important to sit down in the beginning and plan this all out. It’s also important to start planning for your taxes, such as how much to put away each month and what forms you’ll need to fill out beforehand, if any. Make sure you also plan out your financial goals. It’s easy to say you want to earn so much in one year, but how much should you be making daily, weekly, and monthly to accomplish this goal? A great way to make sure all of your finances are planned out in advance is to work with an accounting firm. Your expertise may not be finance, and that’s okay.
Financial Tip #2: Smartly Manage Your Finances Post-Launch
This is easier said than done. There are many things you need to budget for and keep track of. It’s important to create accurate financial statements regularly, including your income statement, balance sheet, and shareholder information, when applicable, to manage your finances properly. Also, be sure, when budgeting, that you remember to pay yourself. Oftentimes, people forget this part, believe it or not. You’ll want to have enough money to cover your expenses, save, and give yourself an income. Lastly, be frugal with your spending, especially in the beginning. It’s important to know where your money comes from and where it will come from in the future, especially since one of the biggest reasons startups fail is because of poor cash flow management.
Financial Tip #3: Outsource Your Finance Department
If you’re not really a numbers person, say finance isn’t your forte, that’s okay. You can always outsource your finances. An accounting firm will be able to help you with things like bookkeeping and payroll, preparing for tax season, and managing your finances in ways you probably never thought possible. If you’re looking for an accounting firm in El Paso who can help you successfully run your startup, Clifford, Ross, Raudenbush, & Cooper, LLC can help. Call us today!