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"Accounting. Bookkeeping: The very words conjure up images of dusty ledgers and drudgery. Despite accounting’s boring reputation, however, it can't be emphasized too much how essential it is that your business follow accounting's best practices right from the start.
In fact, financial mismanagement is an oft-cited reason for business failure: An Influential study by CB Insights of 101 failed startups found that cash flow was the No. 2 reason why some of those small businesses failed, and was second only to businesses trying to sell a product that their market didn't need.
So, whether you’re a bootstrapped startup or you’ve secured funding, pay very close attention to proactively managing your business's cash as it ebbs and flows. That kind of attention is vital for both long and short-term success.
Thankfully, adhering to accounting best practices is no longer as challenging and time-consuming as it once was. In the past decade as a founder, I've learned about a host of tools to help ensure my -- and your -- business maintains its all-important focus on the bottom line. Here are five standout ones small businesses can use to perfect their accounting practices and ensure their financials remain transparent."
To continue reading Thomas Smale, Founder of FE International's 5 Challenges Startups Face and the Tools That Will fix Them, visit Entrepreneur.com.
Author Bio: Thomas Smale co-founded FE International in 2010, growing the business with zero funds from scratch to a seven-figure-a-year business. Specializing in advising and brokering the sale of established websites and online businesses, FE International has completed over 400 transactions. Smale has been interviewed on podcasts, blogs and also spoken at a number of industry events on online businesses, exit strategy and selling businesses.
*This article is an opinion piece and reflects the opinions and experiences of the author.