For many of us, accounting, taxes, and bookkeeping can be very scary, but it should not be. With the advancement of technology, many tasks of bookkeeping have become automated. To make yours and your accountant’s life much easier, there are some simple steps to follow.
You need to Find an Accountant in the UK first to help you with the accounting part of your startups. Your accountant and you should follow some of these basics of bookkeeping, banking, payments, and taxes.
Setting Up Your Banking
After you get your EIN from the IRS, you should immediately set up one separate banking account for the startup. It’s good to have another operating account, but you will not get another corporate separate credit card if you don’t personally sign for it.
With own credit history of your company, you might be able to skip this step. Pick a bank with advanced connectivity and online banking options. Your bookkeeping can be automated with this.
You need to organize the payroll of your employees. There are now various options when it comes to be onboard and automate the payments including both federal agencies and state for taxes. Many organizations provide automated multi-state support and robust management benefits.
Keep Your Documents in Order
You have to save every document from bank statements to receipts because these might be needed to prove in the audit. Reconciliations in web-based software need to verify balances captured in pdf. These automated feeds are yet to be flawless. Save all your documents in Google Drive or Dropbox to prevent data loss in case of some emergency.
Automate Document Collection
You can search for Top Accounting Firms for Small Businesses in the UK to look after your accounting part of your business. Along with that, if you want to go ahead and pay a monthly fee, then you can also automate statement collection, data entry or receipt management of your startup with some online services. These services can be connected to the bookkeeping software to push documents automatically.
Expenses and Reimbursements
Mostly all new businesses spent money out of their own pocket to start the business. If you are one of them then you must make sure that you are tracking those expenses and also getting credit for the expenses. Once you go over 5 expenses per months period or have some people who are submitting for reimbursements, you need to get a separate software to manage all of these. You must clearly document whether all of these expenses should be reimbursed or you are totally contributing them to your company. Do these reports every month and pay out regularly.
Prepare for Tax Season
Most of the startups are limited companies and every startup business owner must know about the federal income tax return. When you are making good money you must consider setting up quarterly estimations. You will need to understand how often to send payroll taxes. Depending on where you are you, you have to give an annual franchise fee or tax.
If you work with a CPA, that’s the best thing to ensure that you are always up-to-date about all these financial deadlines. As the financial sector is constantly changing, you must give the responsibility to handle the accounting of your startup on an expert accountant. You must spend your time to figure out how you will launch and scale the startup, instead of deciphering tax regulations and codes.