Every great venture starts will a few simple steps. Launching your own online store is very challenging but if you start with the right actions, you will be on your way to a successful business.
In order to operate smoothly, first, you have to know and understand the things you have to do especially relating to accounting. In this article, we prepared some of the steps that you must master.
START A BANK ACCOUNT
One of the first and most important things you have to do aside from legally registering your business is to create a bank account where you can set aside your business income. This will also make records easier to manage when it’s time to settle taxes.
By separating this from your personal assets, you protect your own money. This also helps build a strong business financial record which can help you in case you need additional funds from creditors or investors.
A business checking account is a good place to start. This can be followed by a savings account to organize resources and prepare for taxes. Experts advise putting 25-30% of your income for tax withholding. A business credit card can be considered later on to build credit and ensure future funding.
Research is necessary before talking to a bank and opening an account. This is to determine fee structures on business accounts. Obviously, before you can open a business account, you must first have a business name registered with your state or province. All other documents entailed to your company must also be prepared just in case.
MONITOR YOUR EXPENSES
What gives a business, accurate and stable bookkeeping is proper tracking of expenses. Everything from building financial statements, tracking deductible expenses, and preparation of tax returns, and growth the business will not be possible without starting with it.
Receipts and other important receipts can be organized and processed with an accounting system. You can find one online or from service providers who offer this. It must reflect and categorize expenses so you can differentiate personally used funds from those that are for business. With software, this can be easily achieved using a phone.
ESTABLISH A BOOKKEEPING SYSTEM
The process of recording and categorizing business transactions, and consolidating bank statements on a daily basis is what makes up bookkeeping. Meanwhile, what differentiates it from accounting is that accounting involves looking into the progress of the business and analyzing the data produced by the bookkeeper.
You can do all these using software as simple as an Excel spreadsheet. Alternatively, you can also outsource from a third party or pay for the service of an on-call bookkeeper. Soon when your business is stable enough, you can consider hiring an in-house bookkeeper and/or accountant.
Bookkeeping may seem complex, but when you learn and get the hang of it, soon you will find yourself managing your own books and personally seeing its notable benefits.
SET UP A PAYROLL SYSTEM
It is totally okay to start a business on your own. But with luck and by being serious and devoted about it, it will come to a point where you can expand. During that time, it will make sense to hire additional manpower. In doing so, you will be required to create a payroll schedule to make sure that correct taxes are being withheld. You can invest in services or accounting software solutions to help yourself with this.
On the other hand, if you employ independent contractors, just make sure you are fully aware of how much you’re paying each person.
STUDY IMPORT TAX
It might seem overwhelming for you but importation to other countries is an opportunity that will be open to every business depending on its model. When importing, keep in mind that you have to learn and be updated especially if you are into the dropshipping business.
Incoming goods may be subject to fees in your country. Luckily, this information is readily available in most countries so you can easily check it out and familiarize yourself with the guidelines. Also, when importing goods, you may need a duty calculator in estimating the fees in your own business and planning for costs.
