Any board member of a successful startup company knows just how crucial building strong financial infrastructure actually is, especially if you want your new business to run smoothly from day one. Yet, far too often young entrepreneurs tend to leave this step for later in a we’ll cross that bridge when we get there fashion, making their company volatile right from the beginning.
But the truth is, managing business finances doesn’t have to be too stressful. Although it may seem like a complicated task to an untrained eye, dealing with startup finances is, though critical, much easier than it looks like, especially in the beginning. Plus, it can save you a ton of stress in the long run.
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What is great about startup companies is that they typically don’t have a great deal of activity when it comes to overall finances, not during the first months anyway. This means that managing business finances can actually be a walk in the park at first, giving you enough time to learn all the ropes and become rather skillful at it for later when your company gains traction.
As for the very system you will be using to keep track of your financial activity, you can go old-school and keep all the receipts in a cardboard box, but we recommend using an Excel spreadsheet before you are ready to move onto one of the online programs designed especially for this aspect of managing a young business company.
Should you decide to use a spreadsheet, we suggest you keep track of both your cash inflows and cash outflows in the following manner:
Cash inflow info:
1. The amount of money you collect
2. Date when it was collected
3. Name of the person it was collected from
Cash outflow info:
1. The amount of money spent
2. What it was spent on
3. To whom the money was sent
Also, make sure you keep all the invoices and receipts, both sent and received, somewhere safe.