7 accounting tips for startups to survive the first year | [Guide]

It is estimated that the 90% of startups that are launched in Singapore dies within five years of life . The reasons are varied but in a large number of cases, the financial and Accounting problems mean that many companies have to dissolve.

In the end, most of the people who set up a business are not economists or have experience in business management. On the contrary, they are experts in their area (related to their product or service) and assume the role of accountants by necessity or obligation.

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1. Use the technology best suited to your needs

The Excel expired a long time ago.

Today there are online accounting tools that will make your life easier thanks, among many other things, to cloud technology. It has certain advantages:

• You can access from anywhere with your passwords and consult the information you need.
• You can give access to other team members and control what they see and what they do not.
• You will have the information updated in real time.
• You will have updated reports with just one click.
• You can take all the accounting of your company from one place.

2. Invests the money with a head

When time runs against you and money is limited, you need to analyze very well what you spend every euro of your company.

Ideally, at the beginning of the project, you have a business plan in which you define the expense items and that this will serve as a guide.

However, if at any time there is an opportunity, always ask yourself this question: how and when will you get a return on this investment? That is, if for example you are going to dedicate a game to a marketing campaign you must be very sure of how much you will report in terms of business.

3. Hire an expert to help you with accounting

If you know that you want your business to grow, hiring an expert advisor is a good idea . Depending on your budget, there are different options:

• Hire an external advisor, the most economical.
• Hire an internal advisor who works remotely and for half a day.
• Hire an internal consultant who is full time dedicated to your company.

For the first two, having an online accounting tool will be very useful since the advisor will be able to consult the data and do the accounting from anywhere.

4. It has real-time data

When the life expectancy of your startup is only five years, every second counts.

Therefore, you can not spend a day without being aware of what is the economic status of your company . For that, you need to have real-time data of your income, expenses and benefits (at least).

Only then, you will be able to identify possible problems and solve them in time .

5. Make projections adequately

In addition to analyzing the present of your business, you also have to think about the future . It is important that you know how much income you should generate in order to maintain the current growth rate.

This is done through projections that will give you a reference of how your business should go and allow you to work with realistic and concrete objectives.

6. Create an infallible billing system

Selling and charging are also an important part of a startup.

If work begins to accumulate make sure you have a secure and reliable billing system . That is, you have the certainty that you will never run out of a job delivered due to a mistake or error. If this happens you would be losing money and working in vain.

7. Take into account your responsibilities with the Treasury

The declaration of VAT, the payment of taxes ... no company, however small or recent, is free to comply with the obligations stipulated by the Tax Agency.

Be clear what they are because, in case you miss a deadline,  the penalty may cost you a lot of money .

Taking into account these aspects and being very rigorous in the control and economic management of your startup, you will be able to grow and prolong the life of your business .