No matter your level of expertise in creating or marketing a product or service, one thing is certain — the creation of a new business venture is sure to be an educational experience. This is particularly true regarding the financial aspects involved in such a venture, such as tracking profits and losses, handling payroll and invoicing, and dealing with taxation requirements. If you have just started a new business or are planning to do so soon, here are some tips to help simplify your accounting process and bolster your chances of success.

Make record keeping a daily habit

Most new businesses must operate on a limited amount of startup capital. This means that every cent must be spent wisely, in order to make sure that the budget stays viable and on track. New business owners who find themselves constantly searching for receipts or forgetting to enter critical purchase or sales figures are more likely to find themselves with other more serious accounting issues later. 

To avoid this problem, new business owners should strive to develop the habit of tracking key financial data as it happens. While this can be done manually, it can be accomplished more easily and more accurately by using technology, such as apps or mobile software specifically designed for small business use. 

Make sure business and personal funds are separate 

New business owners must also resist the temptation to postpone opening an official bank account for their business. When a personal account is also used for depositing business funds and paying bills related to the business, record keeping instantly becomes much more difficult due to the need to try to separate and classify each transaction.

Using a personal account for your business will also make it very difficult to determine if and when your business begins to earn a profit or if it is experiencing a loss. Filing quarterly taxes will also be much more complicated when business and personal finances have been lumped together in one bank account. 

Make regular oversight part of your plan

Another important tip for new business owners is to always include proper financial oversight on a regular basis. While creating a Chief Financial Officer (CFO) position is an excellent goal for most businesses, most newly founded ventures are unable to afford this type of hire. 

New businesses can get the oversight they need by having a certified public accountant (CPA) handle specific duties, including keeping records, preparing quarterly taxes, and other needed financial tasks.