{"id":2617,"date":"2021-03-30T12:30:33","date_gmt":"2021-03-30T16:30:33","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=2617"},"modified":"2026-02-12T04:48:56","modified_gmt":"2026-02-12T09:48:56","slug":"top-3-accounting-tips-for-startups","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/top-3-accounting-tips-for-startups\/","title":{"rendered":"Top 3 accounting tips for startups"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-us\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tTop 3 accounting tips for startups\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2021-03-30T12:30:33-04:00\">March 30, 2021<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Top 3 accounting tips for startups\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-us\/blog\/top-3-accounting-tips-for-startups\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-us\/blog\/author\/johannabrown\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2019\/07\/Johanna-headshot2-350x350.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Johanna Brown-Lyons<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>You work hard at making your business a success because you love what you do\u2014not because you love balancing the books. But accounting is a business essential that\u2019s crucially important to your success as a startup.<\/p>\n\n\n\n<p>Here are our top three accounting tips for <a href=\"https:\/\/www.youtube.com\/playlist?list=PLG3VAatOz36k--3-6Hp_gd4_d8Nw6K2UY\">successfully managing the company finances<\/a>, wherever you are on your business journey.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><br><h2><strong>Understand your financial story<\/strong><\/h2><br><\/li>\n<\/ol>\n\n\n\n<p>When you look at your financial statements, you should know what\u2019s behind every figure. You don\u2019t need to take a course in advanced accounting.&nbsp; But, it\u2019s useful to have a sound understanding of basic accounting practices and terminology.&nbsp; At a minimum, you should become familiar with the following three financial statements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Balance Sheet is a snapshot of your finances on a given day.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/profit-loss-statement\/\">Income Statements<\/a> show a business\u2019s progress over a set period of time.<\/li>\n\n\n\n<li>A <a href=\"https:\/\/www.sage.com\/en-us\/blog\/glossary\/cash-flow-statement\/\">Cash Flow Statement<\/a> shows how changes in the Balance Sheet and income affect cash.<\/li>\n<\/ul>\n\n\n\n<p>Your business accounts don\u2019t have to take hours of your time. With the right tools, such as a cloud accounting solution, managing your books can be quick and simple\u2014so that you can focus on your business journey.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><br><h2><strong>Keep up-to-date records<\/strong><\/h2><br><\/li>\n<\/ol>\n\n\n\n<p>Businesses with up-to-date accounting records are far better at making informed, educated decisions based on real, current facts. It\u2019s therefore essential that you allocate some time every week to updating your books. With the right tools, you don\u2019t need to spend more than a few minutes a day, but it won\u2019t be long before your business starts reaping the rewards. Keeping your records up to date helps you create and maintain a solid and reliable idea of progress\u2014making it easier to see if you can pay yourself and your employees this month. You need to record revenues, business costs and allowable expenses as they happen. A few minutes a day can save you hours over the course of a year.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><br><h2><strong>Create and maintain a budget<\/strong><\/h2><br><\/li>\n<\/ol>\n\n\n\n<p>Try plotting your future expected income and expenses so that you can foresee cash flow. <a href=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-create-a-business-budget\/\">Creating a monthly budget<\/a> until the end of the current financial year\u2014and then tracking and updating your provisional figures with the real ones as they come in\u2014helps you monitor progress against your plan, and adjust your plan to improve future performance. And don\u2019t forget to run your overall budget for the full current financial period (usually a year) so that non-regular expenses\u2014such as annual insurance premiums, taxation, or periodic services expenses\u2014are also factored in.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">A guide to small business finance<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>In this guide we&#8217;ll walk you through the financial statements every small business owner should understand and explain the accounting formulas you should know.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-07b2de02-834c-45aa-9ed4-8042b04893e9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1327779575-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1327779575-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-ab515c6e-7e90-4c2f-a67e-113872516e8b\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"Working from home with tea in hand\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>You work hard at making your business a success because you love what you do\u2014not because you love balancing the books. But accounting is a business essential that\u2019s crucially important to your success as a startup. Here are our top three accounting tips for successfully managing the company finances, wherever you are on your business [&hellip;]<\/p>\n","protected":false},"author":795,"featured_media":2620,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[43],"tags":[110],"business_type":[40],"lilypad":[],"context":[102],"industry":[55,54],"persona":[96,97,95],"imagine_tag":[230,231],"coauthors":[645],"class_list":["post-2617","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","business_type-small-business","industry-professional-services","industry-retail"],"sage_meta":{"region":"en-us","author_name":"Johanna Brown-Lyons","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2017\/09\/GettyImages-610436768_super.jpg","imagine_tags":{"230":"Small business","231":"Start up business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/2617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/795"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=2617"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/2617\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/2620"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=2617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=2617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=2617"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=2617"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=2617"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=2617"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=2617"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=2617"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=2617"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=2617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}