1. Track your expenses:
Your entrepreneurial journey starts before you incorporate your company. Have discipline in tracking your expenses. There are a lot of good apps (zohoexpense.com, etc) which take care of paperwork and tracking. You don’t need to worry about filing bills or missing expenses.
2. Set up an accounting system:
This is not as complicated as you think. Cloud-based apps make this process very easy and intuitive. You can get any decent accountancy firm to review your books every month and ensure that they are in order.
3. Set up a payroll system
Tracking your employees' payouts and managing their time sheets is as important as getting work from your employees. Use any cloud-based software available to track employee payments.
4. Figure out your compliance
Knowing your company’s compliance requirements is very critical. Compliance can range from any matter relating to RBI, ROC, TDS, GST, PF & ESI basic size of your company or sector. You can ignore these only at your peril.
5. Buildup a financial model
You need to know when you will run out of cash. Build up a financial forecast model to capture your income, expenses, and your targets for the year. A cash-flow forecast is as critical as the product or service you are creating.
6. Organize due diligence files
Always organize your due diligence files for quick reference. Investments will go smoothly when materials are ready for due diligence. You never know when you will land up with a term sheet, so always be prepared and get the best out of the situation. You can look forward to a template from us shortly.