Setting up your own business should be an exciting process. You’ve read our guide on the key do’s and don’ts, you’ve thought about your stock, as well as where you’re going to sell and how to manage yourself and your time.

However, you may still feel a little daunted about the accounting side of things, especially if you have very little financial experience. With this in mind, here are five steps to getting your startup on track:

Find a reputable accountant

While you may be looking to save costs, a good accountant isn’t something to scrimp on. You need a knowledgeable person or company who can assist you with your day to day bookkeeping to ensure you get everything right when it comes to tax obligations and payroll should you start to employ people.

Set up a separate bank account

Every business should look into setting up a separate bank account – if yours is registered as a corporation or LLC this is actually a legal requirement. A business account keeps all work transactions separate to personal ones – making it easier when it comes to tax season. You could also look into setting up a separate savings account to pay your self-employed wages into.

Look into software that syncs together

Software that works together is the best choice as it ensures you never miss a thing. When your POS system links to your accounting software and your inventory management then you’ll be able to instantly spot trends and keep on top of payments.

Learn how to keep track of expenses

No one wants to sift through jumbled receipts once it’s time to work out what is a deductible expense and what could be considered taxable when completing your tax return. It’s something you should get into the habit of doing – so that every penny spent for your business is accounted for.

It may be tempting to keep a paper trail – in something such as a classic filofax – but with everything going digital it’s worth looking into a service such as Shoeboxed – which automatically turns receipts into data.

Chase your invoices

It’s vital that you get the money you are owed. After all, until an invoice is paid you’re not getting any benefit from work you carry out or products you have delivered. Delays on invoices can severely hamper your cash flow – especially when you’re first starting out – and cause you to run into problems. Make sure the terms of repayment are clear to your clients and that you have a robust system in place to chase payment for the money you are owed.

Ready to tackle the accounting side of your business? Ensure these five steps are in place and reap the rewards of working for yourself.