3 Accounting Things You Need To Think About If You Are Creating A Tech Start-Up
If you are in the process of putting together the funding for a tech start-up, make sure that you and your founding partners take a few times to think about the accounting side of your business. If you truly want your tech start-up to succeed, you are going to need to make sure that you understand the financial side of starting up a business.
Decide Who Is In Charge Of Accounting
Accounting is a vital part of starting a business. One of the partners in your start-up needs to be the go-to person concerning all accounting matters for your business. This person needs to be on top of payroll, expense reports as well as accounts payable and receivable. This individual does not need to execute the details of all the accounting matters on their own, but they need to be in the know and on top of all accounting issues. This will make it easier for discrepancies in your books to be spotted and will help your entire founding team realize right away if your business starts to operate in the red. Although you can divide up these responsibilities a bit, make sure that at least one member of your start-up is in charge of looking over all expense reports every week; healthy accounting practices will lead to a healthier business. For more tips handling the taxes and finances of your business, contact a company like Wiggins, Smit, Burby, Reineke, & Company P.A.
Invest In High-Quality Accounting Software
As a start-up, you are probably working on a limited budget as you get your business up and going. If you are working on a limited budget and cannot hire an accountant or accounting firm to assist you with your finances right now, you should invest in some high-quality accounting software. Don't go for a bare-bones program; invest in one that will help you with all aspects of your business. You want to purchase a program that will allow you to create custom invoices, link to your bank account, track payments, perform payroll tasks, and generate automated reports about the overall financial health of your business.
Don't Over Hire
As you get your business going, resist the temptation to over-hire. Although you may need assistance with a variety of different areas, such as sales, customer service, tech and human resources, that doesn't mean that you need to hire full-time staff for all of those positions. Keep your staff numbers low as you build your start-up; this will help you reduce your operating costs and hopefully increase your revenue.
If you only need help in a specific area for a couple of hours a week, consider outsourcing that work. For example, if you need a graphic created for your business, hire a graphic designer for that specific project, or if you need some HR support, contract with an HR company for a certain number of hours of support per week. You don't need to have a full staff like a full-fledged company when you are just starting out. Take advantage of the gig economy to get the extra help your company needs without breaking the bank.