3. Manage basic bookkeeping
You might consider bookkeeping to be one of the most tedious/boring and low priority parts of running your venture, but it is also a key activity that needs to be maintained over time.
Having your books cleaned up on a quarterly basis is extremely important as it allows for accurate and timely reporting required to go get grants, investors, loans, etc in addition to compliance.
It also helps you to stay on top of those pesky tax related requirements.
What is the difference between bookkeeping and accounting?
According to Quickbooks, here is the difference:
Accounting is the umbrella term for all associated processes tied to recording a company’s financial transactions. The goal of accounting is to interpret, categorise, analyse, report and summarise all financial information accurately.
Bookkeeping, on the other hand, is an integral part of the accounting process. It zeroes in on the administrative side of a company’s financial history and present.
Here are some more tips from the folks at Quickbooks around bookkeeping.
Tools for bookkeeping
It’s not that hard to keep track. You should start by thinking about the items you will need/want to track for your business.
For most early stage startups, an excel template like the one we have provided is sufficient to do your bookkeeping.
Once your business starts getting some traction, you might decide you want to upgrade to bookkeeping/accounting software. There are many options for this — one tool we recommend for startups is Quickbooks.
District 3 has negotiated a discount for D3 startups. Check out the Notion page for more details.