Myth 9: Books, records, and insurance are for big companies only
Bookkeeping may seem like it’s the province of big companies with millions of dollars on their ledgers, but it’s vital for every business to keep thorough, accurate records, no matter the size. Accurate recording is necessary to get you through due diligence, to say nothing of the myriad other reasons why you should keep good financial records.
Bookkeepers do a yeoman's work, tracking all of the receipts and checks for your business and keeping them organized. While this may seem like something that you can handle yourself, it's a good idea to have a professional who understands the methods of proper bookkeeping handle such an important aspect of your business. It probably seems simplistic, but having a clear understanding of your expenses and obligations against your income to understand the health of your business.
If you're looking to take out a bank loan for your startup, the bank will undoubtedly want to see copies of all your financial records, and on that day you'll be grateful for the time and effort and money put into having accurate records on hand. And good bookkeeping can also keep you out of trouble with the IRS, who I'm assured take the matter of faulty tax returns quite seriously.
Insurance is another area that no company is too small to ignore. No matter what size your business is, insurance is critical for protecting your assets, particularly if your business is operating online and accepting payments via credit card. Insurance will also help cover for such unexpected events as an injury to an employee, the death of a cofounder or partner, natural disasters, or lawsuits against your company. If your business has employees, you are required to pay for both workers' compansation and unemployment insurance, and possibly disability insurance. Beyond that, it is worth exploring wheter your business would be best suited to have product of professional liability insurance, as well as general liability insurnace.