Listen to the podcast here: https://moneypig.buzzsprout.com/2136084/13912828-how-to-start-a-new-business-on-good-financial-footing
The Money Pig Podcast by Goodwin Investment Advisory, is joined by CPA Krista Dempsey to discuss starting a small business on good financial footing.
The top five things to consider are:
- Entity selection
- Setting up a bank account separate from personal finances
- Choosing an accounting software like QuickBooks Online
- Understanding the chart of accounts and how it affects balance sheets and profit and loss statements.
- A balance sheet that summarizes what you own and owe while a profit and loss statement shows revenue and expenses for a period of time.
The speaker discusses the importance of reconciling accounts in order to obtain accurate financial statements. They mention using QuickBooks to make the process easier and emphasize the need for proper bookkeeping or the help of a CPA. The speaker also talks about their business package, which includes accounting software, bank reconciliations, and data entry services. They highlight the importance of regularly reviewing balance sheets and provide insights into hiring personnel and marketing strategies for small businesses.
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