Everything You Need to Know About Finances for Your Startup

first_imgTravel. If you need to go to a conference or on a business trip far from home, make sure you keep all of the receipts.Fully tax deductible.  Advertising. Whether you try and get the word out through the Google Ad network, Facebook ads, or traditional snail mail, the costs are fully deductible. What it Takes to Build a Highly Secure FinTech … Business lunches. The government will pay 50% of your business lunches, as long as the expense can be substantiated (just check the small print first).Aim for Market Rate Pay Most entrepreneurs won’t give themselves a salary. They’ll work day in, day out, and take a little bit of money when they desperately need it and the company can afford it. It makes sense; you’re just starting off, why waste cash?The problem with this ethos is that it creates an unsustainable business model and an unworkable financial picture. Long term, it just doesn’t work. You should either pay yourself what your role demands or fit it into your short-term financial plans.Expect a Rainy Day You have a fantastic idea. The buzz seems promising. People are buying what you’re selling. It’s all looking good. Until it doesn’t. No matter how good you are at your job or how rosy things look, there’s almost always a bump in the road somewhere.Budget for a rainy day. Keep a buffer for the times when cash flow isn’t good. Retain quality employees even if you’re going through a rough couple of months. Keep your doors open while you weather the storm. Having a rainy day fund will get you out of the tough spots, so make sure you build a decent one.Even If You Know Everything, It’s Still Hard! Startups are exciting, liberating, and have the promise to give you professional satisfaction and making you (potentially) millions of dollars. On the flip side, running a business isn’t a cakewalk.Even if you know everything there is to know about startup finance, it’s not going to be an easy ride. With that in mind, equip yourself to deal with those difficult days. Keep learning about the dollar side of things as often as time allows. And don’t be afraid to call in the experts when you need to. Reasons to Outsource General Counsel Services f… Theodora Evans How OKR’s Completely Transformed Our Culturecenter_img Related Posts Theodora is a passionate blogger from Sydney and she is someone you would call an IT nerd. Also, she takes great interest in psychology and helping people deal with their mental and anxiety issues. Besides that, she loves martial arts and enjoying the nature. Tags:#finances#small business#startups brGetting a startup off the ground isn’t easy. Instead of focusing solely on your baby, as in the actual product or service that you’re selling, you’ll also have to deal with administrative headaches. Managing your startup finances is one of these necessary evils. Here’s everything you need to know about finances for your startup.As a business owner, you’re going to have to get involved with the financial side of things. There are no two ways about it. Here’s what you need to know to steer your company’s finances in the right direction.Manage Your Finances Entrepreneurs will generally do everything except manage their finances properly. Making money is obviously a major concern and often a big driver in starting the business, but actually taking care of the day to day finances tends to take a backseat. And that’s a recipe for disaster.Managing your finances should be one of your top priorities. No “We need to focus on our product,” no, “I’m not a money person,” or “We’ll figure out the finer details later.” In short, no excuses. Manage your cash or you’ll go out of business, period.Your Accountant is ImportantI’ve already emphasized that managing your money is super important. Accountancy deserves its own headline, as it’s the crux around which your financial health will be measured. Without it, your paperwork will be a mess, the IRS will start sending you threatening letters, and you won’t have a clue about how much money you really have.Of course, a startup doesn’t always have the cash reserves to spend money on a fancy (and generally quite expensive) accountant. In the beginning, you’ll be able to do it in-house. You’ll need to brush up on your skills, however, and a course that covers the accountancy essentials should be plenty for Year one, either for yourself or for one of your designated employees. Once your numbers start getting a bit more complicated, hire a pro.Expensive Credit = Big No No You’re just starting out, which means you need money. And quickly. Trust me, as a former small business owner, I get it. When banks and credit card companies start sending you leaflets offering you a bunch of money and all you need to do is fill in a form, it’s easy to fall prey to temptation.I’m going to spell it out with some big letters (just to put some extra emphasis and also to be slightly annoying): NEVER GO FOR EXPENSIVE CREDIT.  It’ll (almost always) end in tears. If you’re relying on credit to get your business off the ground, you’ll likely run out of money before you can start paying it back.Keep Your Expenses LowWorking out of your basement or getting a cool office? Hiring a battalion of employees or working 18-hour days and hiring freelancers? Logo designed by expensive hipsters or something you got off Fiverr?These are choices you’ll be faced with, and while I’m not saying you should cut corners at every opportunity, keeping costs low, to begin with, are key to survival. You don’t want to burn through your finances in the first few months, nor do you want to get saddled with long-term contracts you can’t get out of. Spend money when you need to, but don’t be frivolous.Don’t Merge Personal and Business There’s business, and then there’s personal. They always say you should never mix the two, and ‘they’ are right. When you launch your startup, you’ll need a commercial bank account. For any business expenses, use this account only. Never, ever, use your personal bank account to cover any expenses. Even if it’s a short bridging loan or a matter of convenience. There are simple reasons for this:1) You won’t be tempted to make it a regular occurrence and2) It makes doing your taxes a lot more straightforward.Know Your Tax Deductions Tax deductions can seriously lower your expenses. You should know them inside out, or hire an expert who does. You’ll be surprised by the type of things you can include:Utilities. You can deduct electricity, gas, cell phones, internet connection, you name it. And yes, you can even claim this stuff if you work out of a home office.  China and America want the AI Prize Title: Who …last_img read more

Focus now on 2015 and not on retirement, says Viswanathan Anand

first_imgTwo world championship losses in successive years to a younger and more dominating opponent and the retirement question becomes a norm, even if you are- Viswanathan Anand. But seeing the ambition in his eyes and the determination to bounce back you realise its futile asking him that question. “There’s a lot to look forward to this year,” he tells Headlines Today in an exclusive conversation.Following his loss to Norwegian Magnus Carlsen, Anand has since won the London classic. And although not a big fan of the football like 3 for win, 1 for a draw, points system for the tournament, he admits the win has helped him recover. “The whole thing with the world championships was a pity especially because I had chances but life goes on. The very next tournament I won has made me feel a lot better,” says the 45-year-old Anand.The five time world champion agrees a non championship year allows him a breather and is strongly in disapproval of the way two championships were held in succession in the past two years. “It’s definitely insane playing a world championship every year. I think they should change that schedule anyway. Either 13′ or 14′ should not have been a world championship. But it will be nice to play tournaments and try and take them as a challenge in 2015.”He hates to delve into the Sochi encounter too much but one can see how much it meant to him. “There is disappointment but at some point you realise that life goes on and you find new challenges. I am fine now,” he says.advertisementEfforts to have another crack at Carlsen in 2016 will keep him going, but to get there would mean another candidates win in the same year. And to get to the candidates tournament in good form, he would require a good 2015. “This year I will play tournaments and keep my self in shape. Plus lots of young players are all trying to qualify for the candidates so I will be following them and trying to learn and pacing myself. It’s also nice to have a year where you have just tournaments and a different kind of challenge. That’s not to suggest that this year I will just be lounging around it’s a serious year with serious tournaments,” he says firmly.Just minutes ago somebody asked him a question if Magnus Carlsen reminds him of any cricketer? “Virat Kohli maybe,” he thinks and answers. And is there any cricketer like Vishy Anand? “Can’t think of anyone,” he says. He didn’t say it but could well have said MS Dhoni.So does body language play a role in chess, we ask him of facing off against the more expressive Magnus Carlsen. “Not too much. Everyone has their own body language. What matters is a series of good moves. When that happens, all falls in place,” he says.We take a final effort to see if he has even begun to delve into retirement. If he got another shot at Carlsen and won, would the thought than occur to him? “There are too many ifs in the question. Let’s focus on what I can do this year and try and get there in 2016,” he signs off with a smile.last_img read more