Access to information is becoming ubiquitous. People in start-up companies are used to getting instant information on almost every aspect of their business. Why then, does accounting take so long to prepare reports? I don’t have a good answer for you. The only bad answer I know is that most start-ups don’t pay for a real or full-time accountant and the programs that they use are outdated and slow. Part-time bookkeepers fill their need, however, they generally only know one program and do not know the ins and outs of accounting.
The solutions that we provide will give you more accurate and timely information. It’s very useful to be able to pull up current financial data on your phone or ipad when meeting with a potential investor or banker. It is also incredibly helpful to have timely information about where your funds are going and how you need to adjust your budgets (yes, budgets! I know that’s something most start-ups talk about but never do…).
Start-ups, although generally have few transactions, tend to have more complicated accounting than a bookkeeper can handle. Here is a list of issues that most start-ups have to deal with:
- What type of tax structure should you be?
- How do you account for investors?
- How do you start payroll?
- How should you set up your accounts?
- What kind of bank accounts do you need?
- Do you need a lawyer to get together agreements?
- When are your tax returns due?
- Do you need to do tax planning?
- How is your fledgling business doing financially?
- Should you buy equipment and can you write it off?
- Etc. etc. etc.
If you do not do these things right from the beginning it gets more expensive to fix later. I love start-ups. I love the energy and the creativity that goes into starting a company, so call me, even if it’s only to tell me your idea.