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Administering your business

In addition to working with your product, you will have to make sure that the administrative part of the company works well.

Before starting up a business, most entrepreneurs are most worried about everything pertaining to taxes, SKAT, moms (VAT), accounting and other things that the state imposes on all businesses.

For the vast majority of start-ups, this work is actually not so difficult.

95% handled by good bookkeeping

If you follow these 5 easy steps when setting up your business, 95% of your administrative challenges will be taken care of.

You should always:

  1. Get invoices for all activities
  2. Collect invoices in a ring binder - or using online accounting software
  3. Post invoices in an accounting program at least every three months
  4. Pull reports from the accounting program and pay the collected moms (VAT) for the period
  5. Put on your glasses, read reports and evaluate the health of your business

Illustration of the economic system in a company

Illustration of the ecomomic system in a business

If you want to make it really easy on yourself, hire a bookkeeper or accountant to do the work for you.

The food industry

Certain industries have to manage more of the administration than other industries, e.g., the food industry, where there are many rules concerning hygiene.

Make a budget and budgetary control

As part of managing your business, you need to make an operating budget. This budget shows your expectations for the year, expectations for how much revenue you’ll get as well as all the expenses you expect.

When you create accounting reports, you can then compare them with your budget. If you earned less than you expected, you can clearly see where the challenge lies and what you can do about it.

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