How can I efficiently manage my accounting as a start-up founder?
August 26, 2023 | 40,00 EUR | answered by Martina Köhler
Dear tax advisor,
I am on the verge of starting my own business and now face the challenge of efficiently organizing my accounting. As a startup entrepreneur, I have no experience with bookkeeping and therefore have some uncertainties.
My business concept involves offering IT consulting services. I plan to start as a sole proprietor in the first few months and want to set up my accounting correctly from the beginning to avoid making mistakes later on.
Currently, I have not used any accounting software and am unsure about which programs are suitable for me as a startup entrepreneur. Additionally, I do not know which documents I need to keep for accounting purposes and how to best document my income and expenses.
My concerns are that I could make errors in accounting that could lead to financial problems or even legal consequences. Therefore, I would like to establish a good foundation from the beginning to efficiently and accurately manage my bookkeeping.
So my question to you is: How can I efficiently organize my accounting as a startup entrepreneur? Which accounting software do you recommend for me and which documents do I need to keep for accounting purposes? How can I best document my income and expenses to maintain a good overview?
I look forward to your expertise and thank you in advance for your support.
Best regards,
Erwin Karpinski
Dear Mr. Karpinski,
Thank you for your inquiry and your trust in my expertise as a tax advisor for startups. I am pleased that you are already thinking about setting up your accounting correctly to avoid future mistakes and to keep a good overview of your finances.
As a startup in the IT consulting industry, it is important that you maintain efficient accounting from the beginning. This includes selecting the right accounting software, keeping the necessary documents, and documenting your income and expenses appropriately.
For accounting as a sole proprietor in the IT consulting industry, I recommend using software specifically tailored to the needs of small businesses and self-employed individuals. Programs like lexoffice, sevDesk, or DATEV can help you simplify and streamline your accounting. These programs offer features such as automatic receipt capture, invoice creation, and management of customer and supplier data.
To maintain your accounting correctly, you should keep certain documents that are relevant for tax returns and audits. These include income and expense statements, invoices, bank statements, receipts for business expenses, contracts and agreements, as well as all relevant documents related to your business activities. You should carefully store and organize these documents to have all necessary information available in case of an audit.
To keep a good overview of your income and expenses, I recommend regularly reviewing your financial situation and promptly recording all transactions. Keep a careful cash book in which you document all income and expenses accurately. Use the features of your accounting software to analyze your finances, generate reports, and keep an eye on your operational key figures.
I hope these tips help you efficiently manage your accounting as a startup. If you have any further questions, please feel free to contact me, and I will support you in implementing your accounting.
Best regards,
Martina Köhler, Tax Advisor
