When new businesses form, the accounting and finance work is often an afterthought.
Most of the team’s time is spent on sales & marketing, product development, capital raising, and building relationships. The last thing anyone wants to do is tedious finance and accounting work. However, having strong accounting operations, software, and processes in place from Day 1 saves business owners a lot of headaches down the road.
Unorganized financial reports and mishandled accounts can prevent businesses from receiving the loans or outside capital they needed to grow. A partner like CFOx can ensure your books are accurate and ready to scale with your business.
As such, we recommend that any new business’ accounting function has the following components before they start operations:
Organized and Relevant Chart of Accounts
Before a business opens its books, a proper chart of accounts should be built around anticipated revenue sources, different types of expenses, and the ability to track personal vs. business related transactions. This allows for reporting consistency, reduces reconciliation issues, and creates the framework for accurate financial analyses.
A Cloud Accounting Software
Cloud accounting software platforms offer many benefits to companies, such as increased security, remote access to your financials, and the ability to sync outside bank and credit card accounts.
An Expert Accounting Advisor
We recommend engaging an accounting advisor to properly setup and perform your bookkeeping from Day 1. This advisor will not only be a cost-effective alternative to full-time employees, but they will also help you avoid costly errors and ensure accurate & consistent reporting.
If your new company does not have your accounting function setup and need guidance on how to get started, please contact us at [email protected] to schedule a free consultation.