Performing an annual self-audit on your startup helps to streamline accounting procedures while finding and cutting unnecessary expenditures. Your success, as an entrepreneur, is directly correlated to how you choose to allocate your companys capital. Here are a couple tips for internal auditing and strengthening your finances:
- Hold a periodic financial review with your accountant or bookkeepers. When they close out the books each month, ask to review the financial statements with them and inquire about line items that are increasing or more costly than you imagined.
- Reduce your meal expenses. As a young startup, you may be tempted to treat all potential customers and clients to dinner or drinks on your tab. However, you must remember that only a fraction of these expenses are allowed to be written off. Save your money for crucial expenses, not food or drinks.