The Ultimate Financial Checklist for Your New Business

Hey there, future millionaire besties! 👋 If you’re reading this, chances are you’re taking the first steps toward building something amazing—your own business! Starting a business is an exciting, nerve-wracking adventure. But don’t worry; I’m here as your CPA Bestie to guide you through it, making sure you’ve got all your financial ducks in a row. Because let’s be real: the best way to set yourself up for long-term success is by making your finances a top priority from the start.

Why a Financial Checklist?

Think of a financial checklist as the backbone of your business. It’s the roadmap that’ll keep you organized, efficient, and ready for anything. You’re not just building a business; you’re creating wealth and freedom—and it all begins here. So, grab your favorite pen (or tap away on your phone), and let’s dive in!

1. Define Your Start-Up Costs 💸

Before anything else, you need a clear picture of what it’ll cost to get your business off the ground. Some expenses are easy to predict (office supplies, website fees), while others might surprise you.

• Tip: List out every possible expense, from legal fees to equipment and initial inventory. Don’t forget those little things—they add up fast! This helps you avoid financial hiccups and makes it easier to stick to a budget.

2. Open a Business Bank Account 💳

One of the biggest rookie mistakes is mixing personal and business finances. Do yourself a favor and open a dedicated business account ASAP. It keeps your transactions organized and makes tax season much less of a headache.

• CPA Tip: Look for a business account with low fees and good online management tools. You’ll be thankful later when it’s time to track expenses!

3. Separate Your Business and Personal Expenses 🔍

Using a business bank account is a start, but remember to keep it strictly business. Avoid using your personal card for business expenses—it complicates your finances and can cause issues when filing taxes.

• Bestie Wisdom: Make this a habit from Day 1. Use your business account for every business expense, no matter how small!

4. Set Up a Basic Bookkeeping System 📚

You don’t need to be an accounting pro, but a simple system will keep you organized and save you hours later. Track your income, expenses, and payments in an accounting tool (like QuickBooks or Xero).

• Pro Tip: Schedule regular “Money Mondays” (or pick another day) to go over your finances. Dedicate just 15 minutes to review transactions, track expenses, and set small financial goals.

5. Estimate Monthly Expenses and Income 📈

This is where budgeting comes into play. Try to estimate what your monthly expenses and expected income will look like. This helps you stay cash-flow positive, which is crucial for new businesses.

• Tip: Use conservative estimates for income and realistic numbers for expenses. It’s better to be surprised by having more cash on hand than less.

6. Create a Cash Flow Plan 🏦

Cash flow is the lifeblood of any business. It’s about understanding when money will come in and go out, so you don’t run into cash shortfalls.

• CPA Insight: Plan for at least three months of cash flow ahead of time. Even small businesses should know their weekly cash position to avoid cash crunches.

7. Understand Your Tax Obligations 📑

Every business has unique tax obligations. You’ll want to know whether you need to file quarterly taxes, collect sales tax, or pay self-employment tax.

• Tip: Research your tax obligations in your area. Or, better yet, work with a CPA to make sure you’re covered. Keeping up with taxes from the beginning prevents stress and surprise bills later.

8. Get Familiar with Financial Ratios 📊

Once your business is up and running, financial ratios are a great way to keep track of your financial health. Two good ones to start with are the profit margin (to see how much money you’re actually keeping) and the current ratio (to understand your liquidity).

• Quick Math: Profit Margin = (Net Income / Revenue) x 100
  Current Ratio = Current Assets / Current Liabilities

These ratios give you insight into whether you’re making money and staying financially stable.

9. Create an Emergency Fund 🚨

Life happens, and so do unexpected expenses. An emergency fund can protect your business from shortfalls and give you peace of mind.

• Bestie Advice: Aim to have 3-6 months of expenses saved up. Even if you start small, just make sure you’re setting something aside each month. It’s a lifesaver when surprises pop up.

10. Invest in Your Financial Education 🎓

Whether it’s a book, a course, or simply reading blogs like this one, the more you know about finances, the more confident you’ll be in running your business.

• Your CPA’s Tip: As a business owner, learning financial basics will help you make informed decisions. If there’s one investment you won’t regret, it’s investing in your financial literacy. How convenient for you, we have an amazing comprehensive 10 week course that’s soon available to new and current business owners! Contact Us to learn more!

You’ve Got This!

Starting a business isn’t easy, but trust me—you’re setting yourself up for long-term success just by focusing on your finances. Stick to this checklist, make it a habit to revisit these steps, and you’ll be lightyears ahead.

Remember, I am cheering you on every step of the way. You’ve got everything you need to succeed, and I can’t wait to watch you turn those financial goals into reality. Here’s to smart planning, positive cash flow, and all the success you deserve! Need more personalized financial advice for your business? Connect with your CPA bestie for a consultation!

Go get ‘em, future millionaire! 💰💪

To your success,
Your CPA Bestie – Avery A CPA