by Swapnil Shinde, Co-founder & Chief Executive Officer of Zeni
As a startup founder, your relationship with accounting can be complicated. On one hand, it’s your window into the financial health of your business, empowering smarter decisions and giving investors confidence. On the other hand, it can feel like a time-consuming chore that eats up days each month — time you’d rather spend growing your business.
Love it or hate it, accounting is non-negotiable. Ignoring it can leave you flying blind, risking costly mistakes, compliance issues, or even investor skepticism.
The good news is that modern tools and strategies can make accounting a lot more manageable. Here are some practical tips to help you take control of your finances without letting them take control over your life.
Tap into automation
One of the easiest ways to increase efficiency is by adopting tools that automate repetitive tasks in your bookkeeping and accounting processes. For example, expense reporting apps let your team snap a photo of a receipt, automatically extracting and categorizing the data. Additionally, invoicing tools can generate and send invoices automatically when an order is placed or a project is completed.
Automation doesn’t just save time — it also reduces errors. Processing large amounts of data, line by line, and the sheer volume means mistakes can happen. Automation ensures accuracy, eliminating problems like duplicate entries or misclassified expenses.
Even better, many automation tools today now use artificial intelligence to streamline the accounting process further. AI-powered platforms can learn your workflows, predict trends, and help you make data-driven decisions in real time.
Keep business and personal expenses separate
When you’re running a business, it’s easy for the line between personal and professional expenses to blur. Your living room becomes your office, your phone serves both personal and business calls, and dinner with a potential client feels a lot like hanging out with friends.
However, when it comes to finances, it is essential to keep business and personal expenses separate. Blurring the lines can make tax season a logistical nightmare, make it harder to track financial health, and even lead to missed deductions or penalties.
Set good habits early by separating your business and personal accounts. Use a corporate credit card exclusively for business expenses, and take advantage of automated tools to categorize transactions as business or personal automatically.
A little organization now will save you a lot of stress later.
Opt for accrual accounting over cash accounting
There are two primary methods for recording business financial transactions:
- Cash accounting: Record income and expenses only when money changes hands.
- Accrual accounting: Record income and expenses when they’re earned or incurred, regardless of when the cash actually moves.
While cash accounting is simpler, accrual accounting provides a clearer picture of your financial health. It aligns with Generally Accepted Accounting Principles (GAAP), which makes it easier to meet regulatory requirements and build trust with investors.
In short, accrual accounting helps you plan smarter and scale faster.
Stay on top of compliance and taxes
Taxes and compliance aren’t exactly the most exciting parts of running a business, but ignoring them can lead to costly penalties and missed opportunities for savings. Taking the time to get organized now can save you from headaches later.
Start by understanding the specific regulations and filing deadlines that apply to your business. Knowing what’s required and when ensures you avoid last-minute scrambles or, worse, penalties for missed deadlines.
Accurate, detailed record-keeping is just as important. Tracking business expenses like travel, office supplies, or professional fees can unlock valuable deductions and reduce your overall tax burden. Organized records also make it easier to spot trends and stay prepared for audits or compliance reviews.
By prioritizing compliance and taxes upfront, you’ll avoid unnecessary risks and position your business for long-term financial health.
Don’t be afraid to ask for help
Let’s face it — accounting is complicated, and your time is better spent driving your business forward than stressing over the details of bookkeeping, taxes, and compliance. Sometimes, the best move is to bring in a partner who can handle it all, giving you peace of mind and the freedom to focus on growth.
The right financial partner combines cutting-edge technology with expert support. Look for a solution that checks all the boxes: automating tedious tasks, providing real-time financial insights, ensuring tax compliance, and offering strategic guidance when needed. This isn’t just about outsourcing tasks — it’s about equipping your business with the tools and clarity to make smarter decisions.
Professional help isn’t just about easing your workload; it’s about giving your startup the financial clarity and confidence to grow.
The bottom line
Accounting doesn’t have to be a source of stress. By embracing automation, separating business and personal expenses, staying compliant, and working with a forward-thinking financial partner, you can turn your accounting process into a strategic advantage.
With the right tools and support, you’ll spend less time managing spreadsheets and more time building the business you’ve always envisioned.
Swapnil Shinde is Co-founder & Chief Executive Officer of Zeni and General Partner at Twin Ventures. He is a three-time entrepreneur with two successful exits, as well as an advisor and investor in more than 40 early-stage startups.
