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  • May 11, 2023
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Money Matters: Setting Up Your Small Business Accounting and Payment Systems

Starting a small business is an exciting venture! Yet, even once you’ve got the idea off the ground, there are still a few steps that need to be taken before your business can start taking off. Between finding the right space, hiring the right staff, and making sure you have all of the necessary permits, it can seem like a never-ending to-do list. But what's one of the most important parts of running a successful business?... (Continue Reading)

Starting a small business is an exciting venture! Yet, even once you’ve got the idea off the ground, there are still a few steps that need to be taken before your business can start taking off. Between finding the right space, hiring the right staff, and making sure you have all of the necessary permits, it can seem like a never-ending to-do list. But what's one of the most important parts of running a successful business? Getting your finances in order! Luckily, setting up accounting and payment systems for your small business doesn’t have to be daunting. With the right guidance and resources, you can make this process as painless as possible. Read on for some tips on how to get started.

Setting up the right accounting and payment systems for your small business is key to running an efficient operation. Don’t let yourself get lost in a tangled web of spreadsheets and receipts – take the steps upfront to create an organized structure that will save you time and money down the road. Plus, if you’re ever audited, having everything squared away neatly and orderly can only mean one thing: more time to spend celebrating your success.

Let's understand these processes in segments:

1. Accounting

Accounting in a small business requires being something of a one-man show. You not only need to be knowledgeable in the field but also quite creative! The accounting duties range from bank reconciliations to understanding financial statements - and everything in between. Plus, you'll need to be an expert in taxation legislation, ensure compliance with all laws and regulations, and create budgets and forecasting documents; it's enough to make anyone’s head spin! All this and you're still expected to remain organized despite the day-to-day demands of running a business. If you believe your inner accountant can hack it, then okay. If not, perhaps it's time to consider other options; starting with:

  • Choosing Your Accounting Software

To keep track of all the incoming and outgoing money from your small business, you will need an accounting system in place; but choosing an accounting software can be a dizzying task. It’s like shopping for new shoes - there are way too many options, and you’re never quite sure which ones are the most stylish on the market or will fit you right. So, it’s vital to conduct your own research before making your decision. It’s also important to consider what features you need for the software to meet all of your needs—for example, if you have multiple locations or departments within your business, you may want to look for an option that offers multi-location support.

To make sure that you select the right program for your business, there are a few important factors to consider. Does the system have up-to-date technology that will help simplify your tasks? Is it secure enough to safeguard customer information and sensitive financial data? Are customer support options available in case of technical difficulties or some other issue? Taking time to answer these questions should help you narrow down the list of possibilities so you can make an educated decision. At the end of the day, selecting accounting software just comes down to what will deliver an enjoyable user experience for you and your staff that keeps money flowing through your books.

Some popular software programs that can help you organize and categorize your finances in an easy-to-understand way include QuickBooks, FreshBooks, Xero, and Wave. Remember: with the right accounting software, you can save time and be more efficient with your finances. So, if you're looking to step up your bookkeeping game, choose carefully and make sure to pick something that fits perfectly.

  • Setting Up Your Bank Accounts

Once you’ve chosen an accounting software, it’s time to get down to the business side of things: setting up your bank accounts. To get the most out of your banking experience select a financial institution taking into account factors like fees, security, and technology. Think through the convenience options that are most important to you; if having a physical location nearby is essential, focus on banks nearby. Consider online banks as well, if their offerings and services suit your needs better. And finally, don’t be afraid to get creative. Remember that banking goes beyond traditional brick-and-mortar sites — services like Paysafe and Venmo can be great tools too.

Setting up your bank accounts is a fundamental part of using accounting software - connecting the dots so that all your financial information can be accurately tracked and organized. This critical step will help you keep your money matters in check, ensuring that you never miss a payment or encounter a surprise again. Depending on your business's complexity, you may want to set up multiple accounts—such as one for payroll, one for taxes, etc. Most banks also offer online banking services that allow you to manage all of your accounts from one place, which can be incredibly helpful when it comes time to reconcile everything each month. So do some research and decide the best course of action for yourself.

  • Connecting Your Accounting Software with Your Bank Accounts

The next step is connecting your accounting software with your bank accounts so that all transactions are automatically imported into the system (and vice versa). This will save you a lot of time in the long run since it will eliminate the need for manual data entry every time a transaction takes place. Most modern accounting software programs come with easy-to-use tools that allow you to connect them with any number of third-party applications—including banks!—so don’t be afraid to explore these options if they seem like they would help streamline processes within your business.

Although it may sound complicated, technology can make this process much simpler for you. However, if you're not interested in that option, there is another one available to you.

  • Accountant

Depending on the size of your company and the complexity of your finances, you may want to look into hiring an accountant or bookkeeper who can assist with setting up the system that works best for you. Now, I understand as a small business owner, you may have considered yourself a jack of all trades, but finding an accountant to help out can be a valuable asset for your business. So, how can an accountant help a small business?

An accountant has the financial expertise to provide you with the necessary in-depth fiscal advice and guidance. They can help you create financial plans that make setting and reaching your goals easier - from bookkeeping, filing taxes on time, and navigating complex tax codes to providing the accurate financial documents needed for review. Think of an accountant as your fiscally savvy sidekick who is there to ensure success through planning, understanding, and utilization of your company's numbers.


Accounting for small businesses is a bit like a daring game of financial Jenga: you’re trying to build the highest tower with limited pieces and simultaneously trying not to bring everything crashing down. In this game, those “pieces” are all the financial activities that come with running a business, from tracking expenses to preparing taxes. It’s no easy feat, but with the right accountant or the right accounting software and just a few tweaks, any business can stack up tall and sturdy—without having to take its chances playing too fast and loose with their finances.

Now that we learned about accounting, let's look into payment and setting up payment systems.

2. Payment

Payment is the lifeblood of a small business. Without reliable and prompt payment, it's almost impossible to keep the lights on, much less thrive in an ever-evolving academic climate. But, for small-business owners, “payment” is a double-edged sword. On one hand, they are comforted by the arrival of money coming into the business coffers. On the other, they know that gathering and processing payment data quickly and accurately incurs important administrative costs. Luckily, payment management systems have been invented to take the edge off managing cash flow. These enhanced payment systems make it easy to generate invoices, track customer payments and manage transactions across multiple payment methods—all from one cohesive platform. In short, these systems provide a comprehensive suite of tools for smarter spending and faster collection of payments—unlocking a business owner’s dreams in no time.

  • Payment Processing

It's no secret that payment processing plays an essential role in any successful small business. From denying declined cards to protecting against fraud and collecting data, payment processing is an important tool that helps keep commerce running smoothly. Your business' success could very well depend on setting up a payment processing system that allows customers to pay you quickly and securely by credit card or other payment methods. Of course, understanding all of the available options helps ensure small businesses are set up with the best approach for their particular needs; Paysafe is one such example of a secure payment provider but it is also important to do some research for yourself before deciding which one is right for you.

When it comes to selecting a payment processor, there are a few factors to consider. First and foremost - costs. Are you willing to pay more per transaction or do you need something more cost-effective? Look into fees associated with each service as well as any additional features they may offer such as invoicing capabilities or customer loyalty programs that could benefit your business. Maintenance fees, setup charges and the complexity of integrating into your existing system may also be deciding factors. Then there's speed - a crucial factor for businesses needing transactions to complete quickly and accurately. And of course, don't forget about customer service and user experience as these can make or break your brand. You won't find a one-size fits all answer here, but with a bit of research and knowledge, you can find the right fit for your business. By leveraging technology, businesses can set up payment processing quickly and easily - saving time and money.

  • Payment Management Systems

Payment management systems are the superheroes of personal and commercial finance - shielding you from having to keep an eye on all your transactions across multiple accounts in various currencies. These systems can be configured to serve both basic and complex needs – from keeping track of your spending habits to taking care of bill payments (including employees' payroll setup) for small businesses.

For small businesses that want to trim their costs and increase efficiencies, a Payment Management System (PMS) is an absolute must. PMS allows you to track payments and keep tabs on spending, so you can maintain company budgets, pay your bills on time, and save money in the process. Setting one up can seem challenging at first, but with a little know-how, it becomes much more straightforward. Aim to find a system that'll easily integrate with your existing financial infrastructure as well as any third-party integrations your business might need further down the line; that way you won't be spending time fussing around with complex setup procedures - just set it up and get back to running your business.

Managing payments made to, and received from clients has never been easier than with the advent of PMS. No more time-consuming trips down to the bank or stressful phone calls to your accountant. There's no accounting degree required; just input your data and watch the system take care of the rest. The automated processes will even generate reports on a daily, weekly, or monthly basis - giving you more time to focus on what matters and turning data into actionable insights. So don't get frustrated when managing payments for yourself or your business; let payment management systems do their work - because with great tech comes great responsibility...of automating away all the mundane stuff.

Whether it means slashing your accounts receivable time or getting creative with payment options like installment plans, having a plan for payments and a convenient payment processor that works for you, your employees and your customers are vital for any small business. And since even one delinquent payment can leave a sour taste in their mouths, the best policy is always to stay organized and be sure everyone's on the same page about when – and how – payments are due with the right PMS.

Another important thing to remember while setting up accounting and payment systems for your business is security.

  • Security

When it comes to managing money online, security should always be a top priority. Make sure you have encryption protocols in place (SSL/TLS) so that customer data remains secure at all times. Additionally, most payment processing services come with fraud protection built-in so make sure this feature is enabled if available. Lastly, regularly monitor user activity on your site for any suspicious behavior that may indicate attempts at hacking or identity theft.


Keeping track of your small business' finances can be one of the most challenging aspects of running a successful company but having a good understanding of how to properly manage your money is essential. Having a payment management system to handle transactions and accounting processes helps to streamline operations, no matter your business size or industry. The right setup can ensure secure payments, automate tedious tasks, and save time while running a successful small business. Plus, if you’re ever audited, having everything squared away neatly and orderly can only mean one thing: more time to spend celebrating your success.

Setting up accounting and payment systems for small businesses can be an overwhelming task. It's important to have a good understanding of your financial needs and the type of system that will work best for your particular business. First, you should decide what accounting software you want to use. There are many options available, from desktop-based programs such as QuickBooks and Sage 50 to cloud-based solutions such as Xero or FreshBooks. Once you've decided on the software, it's time to set up your financial records. This includes creating bank accounts and tracking income and expenses, setting up invoices, tracking vendor payments, reconciling bank accounts, and preparing financial statements.

Next, is the payment systems setup. Here you'll need to consider how customers will pay you - via cash or credit card payments - which forms of payment they can use (such as mobile payments or digital wallets), and any additional fees associated with processing payments (such as credit card processing fees). You'll also need to look into setting up a merchant account if needed. After selecting the right payment processor for your business, it’s time to connect it with your accounting software so that all transactions are recorded correctly in your books.

Finally, there are payroll setups for any employees. This involves registering with the government (for taxes) and setting up a payroll system where employee wages are paid accurately each month/period according to their contracts/agreements with you. You'll also need to ensure compliance with local labor laws and regulations regarding employee benefits such as health insurance and vacation time-off policies.

In conclusion, setting up accounting and payment systems for small businesses requires some planning upfront before implementation can begin in earnest. Don’t let yourself get lost in a tangled web of spreadsheets and receipts – take the steps upfront to create an organized structure that will save you time and money down the road. A payment management system could be just the thing you need to take control of every aspect of managing payments for your business. However, it’s important to remember that managing money requires diligence; stay vigilant about protecting customer data at all times, and don’t forget about monitoring user activity on your website regularly to prevent fraud or other malicious activity from taking place on your platform. Make sure to use encryption protocols and fraud protection services to keep your data safe. With these considerations in mind, you should be able to confidently set up accounting and payment systems that work best for you.

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