The first type of entrepreneur will tell you that they plan on buying a new house, put a down payment down on the newest Tesla model, and go on an extravagant vacation to celebrate their accomplishments. These are the types of entrepreneurs I’ve seen become insolvent a year later, or sometimes sooner. The key defining characteristic to highlight is that they view their newfound capital as a means to consume personal luxuries.
Setting up a bookkeeping system doesn’t have to be overly complicated, and there are many different software platforms out there for every budget. Industry leaders like Quickbooks Online
provide cloud based options, while smaller players like WaveApps
provide a free (albeit limited) bookkeeping platform. If you are unsure of how to set up a bookkeeping platform, be sure to consult an expert
on laying the foundation for sound bookkeeping from the start.