Bookkeeping - This is how you do it.
One of the most common startup-related questions we receive is how to manage your finances and bookkeeping. There are several different ways to handle your bookkeeping. Either you do it yourself through an accounting program or you can turn to an accounting firm. Which is best for you and your business depends on several different factors, including time, knowledge, and money.
What does bookkeeping involve?
Accounting is simply a compilation of all the income and expenses that a company has. Every business transaction that occurs in a company, such as purchases, payment of wages, or taxes, should be accounted for. By, among other things, accounting, you can keep track of the company's revenues and expenses and see if the company is making a profit or a loss. In this way, you get answers to important questions such as how much salary you can take out and how much money goes into the company. Everyone who runs a business, regardless of company form, has an obligation to keep accounts. The more often you do your accounting, the better control you get over your company's finances.
The accounting is not only for your sake.
Bookkeeping is not only for your own benefit, there are other stakeholders who, for various reasons, have an interest in your company's finances. It is important to keep the bookkeeping in order so that these stakeholders can receive accurate information about your company.
Examples of stakeholders can be:
Investors- not least in a startup company, it is important for potential investors that the company has a good financial situation.
Swedish Tax Agency- who need support for income or tax declaration.
The bank- to grant any loans.
Shareholders- who, as a co-owner, wants to stay updated on the company and how they are managed.
Where and how can I book?
As previously mentioned, you can choose to handle the bookkeeping yourself or contact an accounting consultant. It doesn't have to be complicated to do it yourself as there are many good platforms that can assist you, but we know that time is incredibly important in a startup phase and then it can be an advantage to get help with bookkeeping so that you can focus on developing and running the company.
The easiest way is to do the bookkeeping with the help of an accounting software, but you can also do it manually in a cash book. However, it is not allowed to do the bookkeeping via regular spreadsheet programs on your computer, you must use an accounting software that is adapted to the legislation regarding bookkeeping.
Here are some examples of accounting software:
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