Congratulations - you've just started your own business or maybe you're thinking about launching it very soon.
With your launch, you'll need to get ahead of the financial reporting tasks that come along with getting started.
First, you'll need to determine your tax obligations, which vary depending on the legal structure of your business.
Then, after legally registering your business, you'll need to setup a separate bank account for record keeping.
And, you may want to setup a savings account and credit card to avoid commingling personal and business assets.
You'll also need to establish a bookkeeping process for recording, categorizing and reconciling business transactions.
You can choose to do it yourself, hire an in-house bookkeeper or work with an outsourced, cloud based accountant.
If you're an American business, you can use a cash-flow method of accounting if your revenues are under USD $5M.
The main difference between cash and accrual based accounting lies in the timing of when transactions are recognized.
But the foundation of a solid business record keeping system is learning to track your revenue and expenses effectively.
It's a crucial step that allows you to monitor the profit margin of your business and build useful financial statements.
You'll also need to determine how to pay yourself, your workers, and the payroll system that'll keep you compliant.
Starting or operating a business can be an overwhelming process, but not if you have a cash-flow management system.
Let FFC Advisors help you get unstuck by simplifying your accounting, automating your payroll, and managing your tax-filing.