Once you start your business, you start selling and buying, you need to maintain your records, track income and expenditure, organize and utilize information to make the right business decisions. In short, you have to be your own bookkeeper. Without this information, you’ll be rudderless in the sea of business and money-making.
Because you are a start-up, you begin differently in a disciplined manner. Take out time each day to maintain your accounts and make a separate bank account. Download accounting software to make your life easy, in which you can maintain payrolls, invoices, online transactions.
Keep proof of payments to suppliers, dealers, etc. if there are any hard copies of bills. Maintain income statement, balance sheet, cash flow statement, etc. You also need to keep yourself updated on statutory compliances, tax benefits, govt schemes for start-ups, budgeting and future planning.
For the first three years, a business start-up is tax free or alternately you can pay tax at 22 pc, but then 3-yr tax benefit cannot be availed.
Chart of account creation
It is a chart with a four-digit numbering system in which you will have categories like assets, liabilities, expenses, revenue, equity (in case you have investors). Each account category will have two same initial numbers and then next two numbers will be used for the sub categories. You may keep adding smaller categories like travel, rent, legal expenses, stationery, as your expenses grow and diversify.
You’ll have to buy this online software, but be careful while buying one. Check whether it fulfills your requirements and allows changes and has sub-categories you require, like QuickBooks Premiere allows you to make changes in your accounts, QuickBooks Online does not; QuickBooks Enterprise Solutions offers the maximum features, QuickBooks Pro provides limited features.
The first step is to register for QuickBooks which gives you free subscription for 30 days only on any plan, customize your settings, import business data, sync contacts, credit cards, bank accounts with QuickBooks.
Before you jet off with QuickBooks, you must train yourself on using them, learn QuickBooks online at your own pace, if it’s difficult for you understand on your won, take a paid service. For a person familiar with accounts terminology, it would be easier, for a novice it could take time to learn. So, if you want get the maximum benefit out of QuickBooks, become QuickBooks friendly first.
Book Keeping is different from Accounting because accounts are prepared from information that is provided by bookkeeping. AccountingCoach.com and other websites like this can help you do Book Keeping online.
Its name comes from traditional book-keepers who would maintain ledgers to note down all transactions of a shopkeeper or business owner. Book Keeping helps to record, classify and organise data. The accounts department uses the books to prepare end of the year statements. Because you are a small business now, you can maintain bookkeeping in a register, and also on the computer by downloading bookkeeping software.
Point of Sale/ Merchant Services
A PoS (Point of Sale) is the place where customer makes payment for the item of purchase. There is a PoS software for digital transactions. In a store or shop, PoS is the counter at which customer takes his purchase and pays the bill. This is the place where you can recommend other products or market your own product to the buyer.
You need to download a cloud based or native PoS software on your computer or laptop, and install hardware like printer. If you can afford an employee at the PoS, it’s a great help in case your stat-up is big enough.
A PoS will streamline and tidy up the fascade but staff training or personnel at the PoS is crucial. A smiling, warm and helpful personnel are an asset to any employer. They must help to reduce check-out time, customer frustration, especially during peak season and loss of customer. Rude and crude front staff is a big put-off for any customer. Getting employee feedback and they in turn getting customer feedback is very very important. The staff should be trained adequately on using PoS software and hardware both. If you are doing PoS management by yourself, learn first.