Recently named as 1 of 3 Alternative Tech Startup Cities by Entrepreneur.com, Reno, Nev. has rapidly transformed throughout the past decade to transcend its former personality of a shadier Las Vegas. Therefore, it only seemed fitting that in the midst of our hometown’s up and coming identity transformation, VAST would provide some startup accounting tips tailored for entrepreneurs. While entrepreneurs may be eager, ambitious and talented, most often they are not experienced accountants. Here are 4 simple yet effective startup accounting tips for new entrepreneurs.
Plan for Long-Term Expenses
Forecasting future expenses can be difficult; however, it’s really important. More often than not, they’re also really expensive. It can be nearly impossible to account for technology upgrades, new equipment and new employees without budgeting for them from the beginning.
Money is incredibly valuable when first beginning operations. So, when that money is stolen or misused, the repercussions of not acting fast can be detrimental to your business. Always check your financial statements for any type of fraudulent activity and act immediately in the event you find something out of place.
Track Your Marketing Efforts
It can be easy to gauge whether your startup is profitable, but it can be frustrating and difficult to determine which marketing strategies are worth continued investment or a kick to the can. Keeping track of online interactions through Google Analytics and social media software can help you determine what is actually worth spending your money on.
Use a Professional
This may be the most important startup accounting tip for entrepreneurs. While business is growing and profitable, convert your financial accounting to a professional team. The cost of employing an accounting service is far more affordable than many would think, and the benefit far outweighs the cost. Eventually the time will come to hand over the hat of CFO; do it before it’s too late.
VAST works with professionals to let them do what they do best: running their small business, and that includes letting entrepreneurs keep on dreaming of the next new thing. Take these startup accounting tips for entrepreneurs and continue making Reno the Biggest Little Startup City it has the potential to be.