You’ve found the perfect idea, built your business plan, and completed all administrative formalities to launch your company? Congratulations—you’re about to embark on your entrepreneurial journey! With this launch comes a critical responsibility: managing your business accounting. We know—it’s probably not the most exciting part of starting up—but planning your accounting system is essential. Below are 7 key steps to help you understand how to properly set up and organize your startup’s accounting from day one.
To start organizing your business accounting effectively, we recommend that you establish a chart of accounts (also known as an accounting plan or account schedule). The chart of accounts is a structured system for collecting financial information. It is the foundational tool required for the preparation of financial statements at the end of your fiscal year. It classifies accounting transactions according to standardized presentation rules. Regardless of your business type, accounting always uses seven main account classes. You can then import your chart of accounts into Kiwili software to properly categorize and organize all financial transactions. Want to learn more and see examples of charts of accounts? Read our article: Free Chart of Accounts: 5 Templates to Discover.
In Canada and France, opening a professional bank account is mandatory only for incorporated businesses. However, even sole proprietors—though not legally required—are strongly advised to open one. A business account helps you clearly separate personal and business transactions, simplifying cash flow management and making tax audits smoother. Learn more in our guide: Professional Bank Accounts for Entrepreneurs in France.
Sales tax rules vary depending on where your business is registered—and even where your customers are located. Be sure to research applicable regulations so you can correctly charge sales tax to your clients. When in doubt, consult your accountant—they’ll guide you through local compliance requirements.
As a freelancer or small business owner, online payments are the simplest, fastest, and most secure way to receive money. With Kiwili’s accounting software, it’s easy to accept online payments via PayPal and Stripe. Simply create a PayPal or Stripe account and integrate it into Kiwili. Once you land your first client, just create an invoice, send it, and get paid online—effortlessly!
Generally, you can deduct any reasonable expense incurred (or expected) to generate business income. Keep all receipts and log your professional expenses using accounting software like Kiwili. Using a business expense tracking tool will help you monitor outgoing funds and track tax amounts paid.
Cash flow refers to the movement of money in and out of your business—in other words, your ability to cover daily expenses with available funds. Cash flow is therefore a critical indicator of your business’s viability and long-term sustainability. In fact, cash flow problems are among the leading causes of business failure. Use Kiwili’s cash flow management features to effectively monitor your budget and liquidity.
Your business must maintain proper accounting books that record all daily financial transactions throughout the fiscal year. Well-kept books also empower smarter business decisions by providing clear financial insights. You can manage your bookkeeping yourself using accounting software like Kiwili, or delegate the task to a professional accountant. Note that you are legally required to retain certain accounting and administrative documents. The type of document and retention period depend on your jurisdiction. Always remember: financial management and accounting are critical to your business success. By following these 7 steps, you’ll have your accounting in order from day one—starting strong and setting yourself up for long-term growth! To go further, read our article on 8 Accounting Mistakes Every Business Must Avoid. Did you know that Kiwili launched a new accounting module in September 2018 to help you gain greater autonomy and real-time visibility into your finances? Discover the full details of our advanced accounting features!
Creating an accounting dashboard is always recommended to better manage your finances.
January 25, 2026 - BY Admin