Registering a business is not the only thing you need to do when you open a business. There are thousands of other things that need to be focused on while starting a business. Below is a to-do list that can help every startup to get on track.
A Bank Account
Every startup needs a separate account of the business. A separate bank account is required for corporations, partnerships, and LLCs. However, for a sole proprietor doesn’t require legally to have a separate account but it is recommended to have one. Once you create an account, you should also consider a business credit card.
Track Your Expenses
Keeping track of your startup expenses is a very crucial step for any business. It is not an activity that you should start at a particular point. It is an activity that should start right from the idea of the beginning of the business. There are five special types of receipts you need to pay some extra attention.
- Meals and Entertainment
- Out of Town Business Travel
- Vehicle-Related Expenses
- Receipts for Gifts
- Home Office Receipts
Focus on your Efforts
The number of items you work on should not be too much. It is better to move on to the next work only when you have finished one. Focus on the top priorities first. It is better to complete some work items rather than keeping a large amount of work in progress.
Bookkeeping is a day to day activity where the transactions are recorded and categorized, and the bank accounts get reconciled. You can go DIY method, outsource part-time bookkeeper or hire an in-house bookkeeper based on the size and need of your business.
As a new business owner, you will likely be a single person and would like to hire an employee or a freelancer. For an employee, you will need to decide the payroll schedule, and for the freelancers, you will have to keep track of the amount of money you pay them.
Research on Import Tax
Based on your business plan, you might need to import or purchase goods from other countries. While importing, duties and taxes will become a common thing. You could either purchase from a duty-free shop or import goods based with the help of Duty Calculator to estimate your budget.
Read Also: 10 Common HR Mistakes in Startups
Mode of Payment
When your business starts running, cash will start flowing in, and you will have to decide on the modes of payment. Not just money, but you will have to accept even cards and online payments. Doing so will be convenient for customers to make their payments.
Sales Tax Procedures
With the emergence of eCommerce, the roots of sales tax have shaken up. In a brick and mortar, you need to for the state of the province you purchase. But when it comes to online, you sell it to customers from a different state or country. It can be easier to sell to an international customer rather than local customers. You need to discuss all these things in detail with your accountant so that you can take clear business decisions.
Calculate Gross Margins
To earn more income overall, you need to improve the gross margin of your store. To understand gross margin you need to know the Cost pf Goods Sold (COGS).
Gross Margin (%) = (Revenue – COGS)/Revenue.
Spend some Time for the Future
While focussing on today’s tasks, you also need to focus on the future of your business. There might be a need to hire more employees if your business grows rapidly. There might be needs for additional equipment, more marketing, larger space, and/or more capital. Revisit your goals and include some long-range goals for your business. It is always advised to prepare for long-term success while focussing the present scenarios.
The Bottom Line
Starting a business can be overwhelming, but getting your startup on the track requires you to follow the above steps. Everything must be taken seriously to gain success in your business.