The First 5 Things to Do When You Start a Business (From a Bookkeeping Perspective)
Starting a business is exciting—but it’s also a lot to manage. While you're focused on getting clients, building a website, or choosing your logo, it’s easy to overlook your finances. But strong bookkeeping habits from day one can save you money, prevent stress, and set you up for long-term success.
Here are the first five things every business owner should do to build a solid financial foundation.
1. Open a Separate Business Bank Account
Mixing personal and business finances is a recipe for confusion—and possibly tax trouble.
Why this matters:
Keeps your records clean and organized
Makes it easier to track income and expenses
Protects your legal liability if you’re an LLC or corporation
Tip: Choose a bank that integrates with your bookkeeping software (like QuickBooks Online) to streamline your accounting.
2. Choose the Right Bookkeeping Software
You don’t need to be an accountant to manage your finances—you just need the right tools.
We recommend:
QuickBooks Online for ease of use, automation, and strong reporting features
Benefits:
Automatic transaction downloads from your bank
Simple invoicing and payment tracking
Real-time financial reporting
Tip: Set it up properly from the beginning—customize your chart of accounts and connect your bank account right away.
3. Set Up a Basic Chart of Accounts
Your chart of accounts organizes all the financial activity in your business. Think of it like labeled folders for your money.
Key categories include:
Income (by service type or product)
Cost of Goods Sold (if applicable)
Operating Expenses (marketing, software, office supplies, etc.)
Assets (equipment, inventory)
Liabilities (loans, credit cards)
Why it matters: Customized categories give you clearer reports and help you make better decisions.
4. Track Every Expense (Yes, Every One)
Every receipt, subscription, or supply purchase counts—and can be deductible.
Why this matters:
Lowers your taxable income
Helps you spot where your money is going
Keeps your Profit & Loss report accurate
Best practices:
Save digital copies of receipts (use apps or upload directly to QBO)
Categorize each expense promptly to avoid a backlog
5. Set Aside Money for Taxes From Day One
One of the biggest surprises new business owners face is how much they owe in taxes—especially if they’re not withholding from paychecks.
What to do:
Set aside 25–30% of your net profit into a separate savings account
Plan for quarterly estimated tax payments
Bonus Tip: Work with a bookkeeper or CPA early so you’re never caught off guard.
Final Thoughts
The earlier you implement good bookkeeping practices, the easier it is to grow with confidence. These five steps are simple, but powerful—and they’ll save you countless hours and headaches later on.
At DPP Bookkeeping, LLC, we help new business owners set up their books the right way from day one. Whether you need help choosing software or cleaning up a backlog, we’re here to guide you every step of the way.
Starting a new business? Let’s make sure your finances are ready. Visit DPPBookkeeping.com to schedule your free consultation.