Starting a new business venture is an exciting time.  It can also be daunting, as there are so many issues to consider and keep on top of.

From the adminstrative side there are a few key strategies that you should be aware of and follow religiously.  These will not only save you headaches later, but also greatly increase your chance of success and potentially save you thousands of dollars.

Here are the big three.

1.   Keep business and personal affairs separate – if you do just one thing, let this be it.  Right from the start set up a business bank account and don’t use it for any personal expenses.   All your revenue will be deposited into this account and all your expenses will be paid from this account (don’t worry – this system still gives you the option of paying by credit card or cash).  If you need to top up the business account or withdraw money for personal use, move money in a lump sum from/to your personal account.

2.   Keep a mileage log for your vehicle.  This is another key to success.  Not only will having a log save you grief at tax time, it will also allow you to better manage your business.  Accurate job costing is essential to business success and travel costs should not be left out of that equation.  Furthermore, unless you have a vehicle that you use exclusively for business (and the proof to back it up), you are going to have to tell the Canada Revenue Agency what portion of your driving was for business and what portion was personal.  A mileage log is the only way to do this.

3.   Document and save all your receipts.  Always make out invoices for your clients, and always get receipts for your purchases.  Most receipts itemize what purchases where made, but you should add your own documentation to remind you later as to how that item was used in your business.  If you paid for a business lunch record who you had the meal with and what you talked about.  If you bought some job specific supplies record the name of the job.

There are many more issues involved with setting up the administrative side on your business that your accountant can help you with.  Utilizing the above three strategies will keep you on the right track in the meantime and allow you to concentrate on the growing your business.