Starting a new business is a bold and exciting step. You’re brimming with fresh ideas, and you just want to get the show on the road, right? Each decision you make early on – how you structure your business, organize your finances, and budget – sets the tone for your future success. At Bland Garvey, we’ve helped countless new business owners take those first essential steps with confidence. Here, we’re sharing 6 critical financial moves that can help you set up a resilient business that’s ready to grow.
1. Choose the Right Business Structure
Your first major financial decision will be selecting a legal structure that suits your business needs—whether it’s an LLC, Corporation, Partnership, or Sole Proprietorship. Each structure has unique tax implications, liability protections, and compliance requirements, so you need to consider your tax plan and protection needs as you make this choice. Be sure to also register with the appropriate government bodies and secure the necessary licenses and permits.
2. Build a Trusted Team of Advisors
Having a strong support team makes all the difference, especially when you’re just starting out. The right professionals bring expertise and perspectives that you’ll rely on for many business decisions. Essential advisors include:
- Accountant/Tax Advisor: For bookkeeping, tax planning, and financial compliance.
- Attorney: For establishing your legal structure and protecting your interests.
- Financial Advisor: For investment guidance and growth planning.
- Business Consultant: For strategy and operational support.
If you need help finding the right advisors, Bland Garvey can connect you to trusted professionals who will help you navigate each stage of your business.
At Bland Garvey, we recommend bringing your personal and business finances under one roof. When your CPA understands your whole financial picture, you get the benefit of informed advice to align personal and business finances. And when your CPA and wealth advisor have the same information, you end up with a holistic approach that serves you today and in the future.
3. Set Up an Accounting System with Essential Financial Processes
An organized accounting system is essential for tracking your business’s financial health. Choose user-friendly accounting software and establish a Chart of Accounts (COA) to categorize all income, expenses, assets, and liabilities. A well-structured COA lays the groundwork for accurate financial statements, supporting performance tracking and securing funding down the line.
Alongside your COA, set up processes for invoicing, expense tracking, payroll, and account reconciliation. Together, these systems ensure smooth cash flow management and minimize errors, making your financial operations more efficient and reliable.
4. Track Your Expenses and Separate Business Finances
Properly tracking expenses will give you an accurate picture of your finances and reduce confusion at tax time. Consider expenses like:
- Start-Up Costs: Initial fees like attorney costs, market research, and branding.
- Operating Expenses: Ongoing costs like rent, utilities, and salaries.
- Capital Expenditures: Long-term assets, like equipment or furniture, which are depreciable over time.
Maintain separate business accounts from the start, including a business checking account and credit card, to avoid complications and help keep your personal and business finances cleanly separated.
5. Create a Budget and Stick to It
A budget is your financial roadmap. As exciting as it can be to purchase new equipment or tools, a budget keeps spending aligned with income and cash flow needs. Sticking to a well-planned budget helps you avoid overspending and sets the stage for sustainable growth.
6. Stay Informed on Tax and Legal Regulations
Regulations change, so stay in close contact with your CPA and attorney, especially before making major changes to your business. For example, adding a partner or making large purchases can have tax or legal implications. Keeping your advisors informed can help you avoid costly surprises.
With a solid financial foundation, your business can grow with fewer bumps along the way. At Bland Garvey, we’re here to support your success, so you can focus on building your business confidently. Here’s to a prepared and prosperous start! Schedule a Consult
Ling Liu joined Bland Garvey, PC in 2018 and is currently a Manager with the firm. She has experience assisting clients in numerous areas including small to midsize business, healthcare, non-profit groups, and family limited partnerships. She has a Master of Professional Accountancy from Stephen F. Austin State University. She is married with 2 children and loves swimming & snorkeling.
