Bookkeeping for Startups: What You Need to Know from Day One
Startups are fast-paced and resource-constrained. It’s easy to put off bookkeeping while you focus on growth, funding, and product development-but doing so can cost you down the line.
In this guide, we break down what every founder needs to know about bookkeeping and financial setup from day one.
1. Set Up a Business Bank Account
Mixing personal and business expenses causes confusion and tax issues.
Fix: Open a dedicated business checking account before spending your first dollar.
2. Choose the Right Bookkeeping System Early
Manual spreadsheets may work for a few weeks, but they don’t scale.
Tip: Use cloud-based software like QuickBooks Online or partner with a provider like Remote Books Online that sets up and maintains your system.
3. Track Expenses and Income From Day One
Every investor, accountant, and tax pro will ask for this. Delaying setup creates a backlog.
Solution: Categorize all income and expenses in real-time with the help of a bookkeeper.
4. Understand Burn Rate and Runway
Your burn rate is how fast you’re spending. Runway is how long your cash will last.
Why it matters: These are the metrics investors want-and you need-to survive.
Bonus: Remote Books Online provides monthly reports so you know where you stand.
5. Stay Compliant With Taxes and Filings
Missed filings or untracked expenses can derail your startup later.
How to avoid it: Use Monthly Bookkeeping to track income, expenses, and prepare quarterly reports.
Use Case
A SaaS founder in California launched without any financial system in place. By the time they closed their seed round, they needed 12 months of financials, fast. Remote Books Online set up their books, reconstructed expenses, and delivered investor-ready reports within 10 days.
FAQs
When should a startup start bookkeeping?
Immediately. The earlier you start, the easier it is to scale and stay compliant.
What if I don’t know how to set up QuickBooks?
Remote Books Online can set it up, customize your chart of accounts, and manage it going forward.
Can I switch later if I outgrow the system?
Yes. We assist with migrations and scale alongside you.
Do I need bookkeeping before raising funding?
Absolutely. Investors will want to see clear, current financials before signing a check.
Get Your Startup Bookkeeping Right from the Start
Remote Books Online gives you expert support to set up, manage, and grow your books as your startup scales.
Schedule your free consultation or call 1-800-583-0148
Stay organized and tax-ready year-round with our flat-rate monthly bookkeeping services.
Tax professionals and CPAs rely on our QuickBooks bookkeeping services to streamline financials and scale their practices efficiently.
If you’re behind on your books, our catch-up bookkeeping services can help you get current fast-no stress, no mess.
