Be a Successful Startup Business
Unlike established businesses, startup businesses have no track record, no credit history, no inventory, and no accounting system in place. With the introduction of Quicken in 1991, many startup businesses began purchasing this bookkeeping system as a mean of organizing their records while saving the cost of hiring a bookkeeper. Shortly thereafter, Intuit introduced a more robust accounting system called Quickbooks. Today, Quickbooks is used by thousands of small business owners in a variety of industries.
Unfortunately, purchasing an accounting software package does not assure the users that the information is correct and properly categorized. In fact, in 2010 the IRS purchased thousands of licenses to assist in the audit of individual company's such as yours. IRS regulations allow agents to request and receive files created by Quickbooks.
One of the biggest challenges new startup business have is record keeping and how to classify transactions. Additionally, here are some tips to help businesses at inception:
Establish a budget.
Develop a team
Monitor your progress
Establish a format that helps you operate your business. And make sure your budget and actual numbers are compared on a routine basis. Many small businesses analyze their business at a minimum of once every quarter. This not only gives them an insite on how profitable their business has been over a short time span, but also allows owners the ability adjust any tax liability and minimize surprises at year end.
In all there years I have been in business, I have yet to see a sure fire way to eliminate these necessary steps for succeeding in business. How you establish your business and who you involve in it's success will determine if your's is one of the 80% that fail or 20% that succeed.