Bookkeeping and Accounting Setup
Assess whether your new business has a bookkeeping system, chart of accounts, and process to keep clean records from the start.
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For founders, new owners, and anyone starting out
Books, Chart of Accounts, and Opening Balances
Clarify books, chart of accounts, and opening balances as a first-time owner: what decision you are making, what must happen now, what can wait, and the next concrete action.
6 guided steps
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Official guidance links
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Your free guided checker
Answer a few quick questions below. It is private - nothing is submitted or stored - and takes about a minute.
General information only; not legal, tax, insurance, cybersecurity, or investment advice. Confirm formation decisions with qualified advisers in every applicable jurisdiction.
The questions this tool walks you through
Here is what the checker asks and why each step matters. Prefer to talk it through? Contact us and we will help directly.
Before the first close, have you selected the accounting method, separated balance-sheet and income-statement accounts, recorded contributed assets and debt, and established a document trail to opening balances?
Answer based on what you genuinely know today. A “No” identifies a question or task; it does not mean you made a mistake.
Continue to the next control. Note this item for your final action list, then continue.
Official guidance: IRS recordkeeping
Do you know which personal purchases, equipment, cash, loans, and credit-card balances are entering the business on day one?
Answer based on what you genuinely know today. A “No” identifies a question or task; it does not mean you made a mistake.
Continue to the next control. Note this item for your final action list, then continue.
Official guidance: IRS recordkeeping
Can your bookkeeping separately show revenue, refunds, processing fees, sales tax, owner money, debt, and major expense types from the first transaction?
Answer based on what you genuinely know today. A “No” identifies a question or task; it does not mean you made a mistake.
Continue to the next control. Note this item for your final action list, then continue.
Official guidance: IRS recordkeeping
Have you gathered statements that support every asset, loan, and credit balance entering the business on day one?
Answer based on what you genuinely know today. A “No” identifies a question or task; it does not mean you made a mistake.
Continue to the next control. Note this item for your final action list, then continue.
Official guidance: IRS recordkeeping
Are sales tax payable, processor fees, refunds, and owner draws mapped to dedicated accounts before the first live sale?
Answer based on what you genuinely know today. A “No” identifies a question or task; it does not mean you made a mistake.
Continue to the next control. Note this item for your final action list, then continue.
Official guidance: IRS recordkeeping
Before the first close, have you chosen cash or accrual, finalized the chart of accounts, and posted supported opening balances?
Answer based on what you genuinely know today. A “No” identifies a question or task; it does not mean you made a mistake.
Finalize the chart before recording live sales List day-one assets, debt, and cash moving into the business
Official guidance: IRS recordkeeping
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