Bookkeeping Must-Haves When Starting a Business

Posted November 4, 2022 by in Career

Many entrepreneurs are intimidated by bookkeeping when starting a business. Just what do you need to manage your accounting? This post lists some of the important things you’ll need to acquire in order to manage your books and file your tax.

Tax ID number

A tax identification number (TIN) is assigned to every individual or business that has to pay tax. One type of TIN that applies to many businesses is an EIN (Employer Identification Number). Now that we’ve discussed what are EIN, EINs can be a bit difficult to understand. Luckily, Your search ends here, In Daily Prosper we’re going to talk all about how to get a business credit card using only an EIN. And, we’ll also explain all the benefits of doing so – for you, the individual, along with your business.

Accounting software

You can do your accounting using an Excel spreadsheet; however, it’s typically much simpler to use accounting software in Australia to handle this task. Such software can automate everything including calculating tax and calculating tax reductions on expenses. There are a few different accounting programs out there to choose from – some of which may be better suited to certain industries. As a small startup, you don’t need to be investing in anything too expensive or complex. It could however be worthwhile choosing an accounting program that has the option to be scaled up if you do ever decide to grow your business. For businesses in the healthcare industry, there are specialized healthcare accounting software options available that are tailored to the unique needs of the sector, such as managing medical billing, insurance claims, and compliance with industry regulations. Take your time to read reviews and descriptions of different accounting programs to help you find the best one for you.

When starting a business, having proper bookkeeping is crucial. Sleek AU offers comprehensive accounting services in Australia, ensuring your financial records are in top shape right from the beginning.

When selecting accounting software, it’s crucial to factor in any specific regulatory requirements, especially if your startup operates in regions with unique tax considerations. For instance, if you’re conducting business in California, it’s imperative to choose software that seamlessly handles California sales tax filing. Additionally, keep in mind the ease of integration with other tools or platforms you may be using for business operations, as this can greatly enhance efficiency in financial management.

Business bank account

It’s much harder to clearly distinguish business transactions and personal transactions when you’re using the same account for personal use and business use. Setting up a separate business bank account can make things a lot easier. It could even be a legal requirement if you’re trading under the name of a limited company or an LLP. When trading as a sole trader, a business bank account is not mandatory, but in many cases it’s still recommended. Almost all banks offer specialist business accounts; it’s worth comparing different banks to see if any have perks and girokonto mit prämie bonuses. Business savings accounts can also be worth setting up to help you hold company savings and collect interest, while business credit cards can be useful to have for when you need to borrow money.  

Accountant?

Many small businesses do not need to hire an accountant. If you can easily keep track of your earnings and outgoing costs, there’s no reason not to do your bookkeeping yourself to save money. However, if you’ve got lots of different sources of income and lots of different expenses to keep track of, including different payment options and different accounts, you may find it more convenient to hire an accountant  – it could save you a lot of time and minimize errors. Hospitality businesses, retail businesses and healthcare services almost always need accountants due to the sheer amount of transactions. When dealing with complex transactions like payments in foreign currencies, it can also be worth hiring an accountant.