A CPA’s Advice for New Entrepreneurs
Track your business expenses. Ideally, use accounting software like QuickBooks, Xero, or Freshbooks. At a minimum, use Google Spreadsheets or Microsoft Excel. Let software guide how you process invoices, book expenses, and generate useful financial reports. Hire a bookkeeper to set up your books and accounting processes and reconcile your financial accounts. Clean books go a long way.
Open a separate bank account for your business to keep your finances organized. Keep your personal and business expenses separate. This makes it easier to track your business’s financial health and prepare data for your annual tax return.
Invoice clients ASAP. We all want to get paid, but you wouldn’t believe the number of clients I have had that could solve their cash flow problems by requiring payments upfront. Forget the old 30 day rule. With credit cards, PayPal, Venmo, Square, don’t be afraid to tighten up your collection schedule. A quicker turnaround can relieve a ton of stress.
Hire an EA or CPA to provide tax planning and preparation services. The tax code is complex and always changing. Let a professional like me enable you to focus on what you do best. Your time is valuable, spend more of it on your work and passions.
