Good businesses fail in bad books. The fix isn’t complicated: two accounts, one card, one invoicing habit, one monthly ritual.
Banking Setup That Just Works
- Operating account (day-to-day).
- Tax & reserves account (automate transfers weekly or bi-weekly).
- One business card (points are a bonus; clarity is the goal).
- Payments in: Offer ACH by default, cards when needed; know your fees.
- Payments out: Use vendor onboarding forms (W-9, bank details, terms).
International owners: we often pair a traditional bank with a fintech for faster cross-border payments and sane FX.
Bookkeeping: The Minimal Stack
- Software: QuickBooks or Xero—pick one and stick to it.
- Chart of Accounts: Keep it short. Revenue lines by offering; costs by function (COGS, marketing, ops, G&A).
- Invoicing habit: Issue within 24–48 hours of delivery; net terms defined; follow one dunning rhythm.
- Monthly ritual: Reconcile accounts, review P&L and cash, tag anything unclear, capture receipts.
Taxes: What We Remind Every Owner
- Separate your salary/distributions if you elect S-Corp status.
- Quarterly estimates are cheaper than year-end surprises.
- If you sell in multiple states, watch nexus—don’t wake up to surprise filings.
Red Flags We Fix a Lot
- Using personal accounts “just for a month.”
- Ten revenue categories you don’t need.
- Paying contractors with no W-9 on file.
- Zero documentation on reimbursements.
FAQs
Which bank should I choose? Depends on wire volume, FX, support, and onboarding ease. We’ll match you based on your profile.
Cash or accrual? Early-stage services can run cash accounting. If you carry WIP or term contracts, accrual might serve you better.
Do I need a CPA from day one? You need clean books from day one. A CPA becomes essential as revenues, payroll, or multi-state complexity grows.
General info only. We’ll align this to your exact ownership and revenue model.
CTA: Want our “month-end close” checklist and a plug-and-play chart of accounts? We’ll share the templates and walk you through them in 20 minutes.