The First 5 Financial Steps Every New Business Owner Should Take

Starting your own business is exciting, kind of like bringing home a new kitten. There’s a mix of joy, nerves, and maybe a few “what did I just get myself into?” moments. When it comes to your business finances, a little setup now can prevent a whole lot of chaos (and fur flying) later.

Here are the first five financial steps to help you start off on the right paw. 🐾

1. Open a Business Bank Account

Even if your income is just starting to trickle in, keep your business and personal finances in separate bowls, err, accounts. It’s the easiest way to stay organized and avoid hairballs at tax time. A dedicated business checking account lets you clearly see what’s coming in and going out, and adding a separate savings account for taxes helps you stash away what’s needed before you’re tempted to “bat it around” elsewhere.

2. Choose a Bookkeeping System (and Stick With It)

Find a system that works for you, whether it’s QuickBooks Online or a spreadsheet system (soon to be available on this site). Think of it like choosing the right scratching post: you’ll use it more if it fits your style. The key is consistency. Review your transactions regularly so your books stay neat and tidy, just like a freshly cleaned litter box.

3. Know Your Numbers (Even the Basic Ones)

You don’t need a CPA degree to keep tabs on your money. Start by tracking three simple things:

• Revenue – what’s coming in (treats earned!)

• Expenses – what’s going out (treats spent…)

• Profit – what’s left over (hopefully still some treats!)

These numbers tell you how healthy your business really is and help you make smart decisions about pricing, hiring, and growth, no need to chase your tail.

4. Set Aside Money for Taxes

This one’s crucial. Many new business owners forget to plan for taxes until it sneaks up like a cat at 3 a.m. Avoid the surprise by setting aside about 25–30% of your net income in a separate account. Future You will be purring with relief when tax season rolls around.

5. Get Professional Support Early

Even the most independent cats need a little help sometimes. Working with a professional bookkeeper (hi, that’s where I come in!) can save you time, stress, and guesswork. We’ll help set up your systems, keep things running smoothly, and make sure you always land on your feet when it comes to your numbers.

Final Thoughts

You don’t have to have everything purr-fect from day one, just take consistent, confident steps. Laying a solid financial foundation now means fewer surprises later and more time to focus on the fun parts of growing your business (and maybe sneaking in a cat nap or two).

About Two Cats Bookkeeping

At Two Cats Bookkeeping, we help new business owners feel calm, confident, and in control of their finances. Whether you’re setting up your books for the first time or trying to make sense of what’s already there, we’ll walk you through each step, no judgment, no jargon, just clear guidance (and maybe a few cat puns along the way). Because running your business should feel less like herding cats, and more like watching them nap in a sunny window. ☀️🐈