How to Set Up Accounting for Your Startup
Starting a business is like going on a first date—you’re full of optimism, but you know there’s going to be an awkward moment or two. As a startup owner, I’ve been through the ups and downs of setting up accounting. Trust me, it’s a bit like learning to dance: you’ll stumble at first, but with the right steps, you’ll find your rhythm. Here’s how I managed to get my startup’s finances in order without losing my mind—or my money. Step 1: Choose Your Accounting Method When I started my business, I thought, "How hard can accounting be? It’s just adding and subtracting, right?" Oh, sweet summer child. The first decision I faced was cash basis vs. accrual basis accounting . Cash basis accounting records income when you receive it and expenses when you pay them. It’s straightforward and perfect for small businesses starting out. Accrual accounting , on the other hand, records income and expenses when they’re earned or incurred, regardless...