Starting a business can be an incredibly rewarding adventure – taking your time and energy into your own hands, starting the day knowing you will be working on things you are passionate about and building something from the ground, entirely yourself. Exciting! Learn the ways to successfully track your start-up’s finances.

But there are a whole host of things to consider once the ball starts rolling. Sales and marketing strategies, possibly renting office space – or renting a new one, once you reach its limits – and recruiting the best possible talent to come and join the growing team, to name just a handful of them. 

But one of the most fundamentally important strands to running a business is tracking your finances. If this isn’t done correctly you could quickly end up on a downward spiral and, worst case, losing your new business altogether. 

According to recent reports on why start-ups fail, among the top reasons for a failed start-up were flawed business models (19%) and pricing and costing issues (15%).

So, if you’re just starting out and need advice on this, don’t panic. We’re here to help. Here are a handful of ways for you to successfully track your company finances. 

Written books

If you’re someone who likes to do things the traditional way, there’s nothing wrong with keeping written books recording all of your business’s finances. The crucial point to remember with this method is to keep them regularly updated, line by line, every payment including invoices, expenses, and any other outgoings. At the end of each financial year, you’ll then pass your books over to a qualified accountant who can check if everything is in order, aligning as it should be.

It can be really satisfying to hold your finances as a physical item in your hands. Remember though, to keep it in a safe, sound – maybe even locked space, to secure its integrity and not to risk losing it.

Spreadsheets

If you’re well-versed in using Microsoft Excel you probably know all about the superpower of spreadsheets. But don’t worry if you’re not. There are tonnes of online resources where you can brush up on your knowledge and get to grips with this program. Excel is great for organising your figures with precision. It does this with the use of formulas – so there are some maths involved, as you’d probably imagine with any finance recordings. Once you’ve cracked your formulas, however, Excel becomes an easy drag-and-drop way of keeping your finances in order, all in one place. You can have several sheets open on one document too, meaning you can easily flick back and compare current figures with last year with just a click of a button.

Outsource to a professional 

If you want to ensure you’ve dotted all your i’s and crossed all your t’s, you always have the option to outsource your accounts to a professional financial consultant. This will give you peace of mind that everything is being recorded efficiently. Using their qualified skillset they can take care of everything from tax breaks, audits, staying up-to-date with legal changes, and any other financial services that you may require. They can also answer any questions you may have along the way, keeping you informed with regular financial updates on how the business is performing. This allows you to change sales tactics when necessary to increase revenue if you’re falling short of your set targets. 

Sure, it does come with extra costs to hire someone either internally or externally, but it also allows you to forget about the financial work altogether. With growth come more responsibilities and tasks – and some of them will drain the hours you have available in your day quickly. Just because you can do the work on your own, doesn’t mean it is the smartest way to handle it. If it means that you won’t have time to do the thing anymore that was the reason you started your start-up altogether, you might lose focus fast. Outsourcing necessary work to maintain a constant workflow on your ideals and goals, will not only ease your mind but also give you a great foundation to grow even further.

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