wAre you starting a business? If you are starting up a side hustle or even a core business you may want to think about starting lean and positioning yourself for financial success. There is a time to go all-in but testing the waters can also make sure your bets are in the best place. Here are a few tips.
Spend smart and be flexible. If you don’t spend much at the start you won’t have to make a bundle to get out of the red. This makes it much easier to start a successful business. Start your business lean and grow your expenses with your revenues. This is especially important for side hustles.
Start with Xero Accounting Software.
Okay, we are biased here as Xero experts. But with discounts for new sign ups and reasonable monthly fees, there is no excuse for tracking your finances on a spreadsheet. Let Xero do the heavy lifting when you are starting your business! You can take pictures of receipts on the go and match them to your credit card transactions. You can also invoice and collect payments on the go. All this leaves more time for you to focus on your business. If you are looking at Xero, contact us for some promo codes and deals (we usually have some that beat the advertised discounts). You can also learn more about Xero here. If you want to talk Xero with us or see if we can help you get a discount, contact us here.
Separate personal and business.
Separating business from personal is a necessity from Day 1. It may seem easy to use your business credit card at the grocery store but it is an extra transaction you have to deal with in your accounting books. This creates risk in proper classification and can even increase the cost of your bookkeeping. The business account is for business only. Ensuring you follow this simple rule with save you hassle down the road.
Follow these best practices and you will be setting up your start-up, for a strong start!
Virtual Heights Accounting is a CPA firm that operates in the virtual world. We provide virtual accounting, tax, Virtual CFO and Controller services for your growing Company. Contact us at www.vhaccounting.ca/contactus or follow our blog on your chosen social media source.