The first step is to create a bank account for your business. The importance of having separate accounts cannot be overstated. It makes you more likely to receive funding and protects your personal assets in case of audits or lawsuits. While opening an account, ensure you have varied options as charges for business accounts are higher than personal ones. You also need to have a business credit card and a business name for funding and registration purposes. Remember to have separate savings account for handling taxes.

Furthermore, you need to have a paper trail indicating all your business expenses. Keeping a log of receipts and the people who paid will help greatly when regulators call. Things like travel and the purpose of those trips should also be carefully logged. Having these will also help to track the growth of your business and the spendings it incurs.

Additionally, you need a solid bookkeeping system. Although bookkeeping varies from accounting in the sense that it is basic, it still helps to document transactions on a daily basis. You can either do this yourself with an Excel spreadsheet or other software or hire an affordable accountant to run it for you.