Setting up new company accounts: your first 30 days
Organising accounts at the start is easier than reconstructing several months of activity later. During the first month, focus on clear records, responsibilities and transaction handling, then develop the process as the business grows.
Week one: understand the business cycle
Document how a customer agreement becomes an invoice, how money is collected and how purchases are approved and paid. List the bank accounts, currencies and payment methods in use. This gives the accountant a practical basis for designing the process.
Collect formation, funding and pre-opening expense documents. Explain who paid each amount and its purpose instead of assuming every initial payment should be treated in the same way.
Week two: organise records and accounts
Create a sensible filing structure by period and document type, with customer or supplier folders where useful. Agree file naming, backups and access responsibilities.
Design the chart of accounts around the information management needs. More accounts are not necessarily better. The objective is consistent classification of revenue, expenses, assets, liabilities and equity, with enough detail to explain the business.
Week three: test actual transactions
Take a sale, expense, receipt and payment through the complete process. Is the evidence available? Is the account selection understandable? Can a reviewer move from the report back to the original transaction?
Resolve gaps while volumes are manageable. Software can support the workflow, but it does not replace a clear explanation of the transaction or an appropriate review.
Week four: review the first report
Check bank, customer and supplier balances, unclear expenses and owner-funded amounts. Agree a monthly closing date and a process for submitting documents and resolving questions.
Make responsibilities visible
- Who issues and approves invoices?
- Who collects purchase and payment evidence?
- Who records transactions and reviews the output?
- Who monitors relevant accounting and tax deadlines?
One person may initially handle several tasks, but the steps should still be explicit. Review the company's tax position separately when setting up the accounts. A sound bookkeeping process supports compliance work; it does not, by itself, determine which tax obligations apply.
How EQRAR can help
EQRAR helps organise your information and identify the support your business needs within an agreed scope. Explore our related service or request a proposal.