Accounting & Invoicing system setup: A guide for new businesses & Startups
Proper financial organization is not just a tax obligation—it is the foundation for growth and profitability. Below is a practical guide to help you set up a reliable accounting and invoicing system, whether you’re a startup or a small business.
1. Benefits for your business
A well-structured accounting and invoicing system provides:
Financial stability: Understand where your money goes and manage cash flow efficiently.
Compliance without stress: Avoid fines and delays by keeping accurate income and expense records and submitting tax returns on time.
Efficiency & Time savings: Automated processes reduce administrative workload, allowing you to focus on business growth.
Investor & Funding appeal: A transparent financial record strengthens your credibility with banks and investors.
2. Choosing the right system
Selecting the right accounting and invoicing system directly impacts efficiency and financial accuracy. Depending on the size, industry, and needs of your business, you can opt for simple tools or comprehensive software.
Manual systems
Use spreadsheets, requiring manual data entry and regular updates.
Examples: Microsoft Excel & Google Sheets.
Ideal for small businesses or freelancers with minimal transactions.
Accounting Software
Specialized programs that automate and simplify financial processes, reducing the risk of errors.
Examples:
SoftOne cloud ERP: A comprehensive accounting management system for businesses of all sizes.
Entersoft business suite: Designed for structured tax and financial management.
Xero & QuickBooks: Cloud-based solutions ideal for startups and small businesses, offering seamless accessibility.
ERP Systems (Enterprise Resource Planning)
- All-in-one solutions integrating accounting, inventory management, and sales operations.
Examples: SAP Business One & Entersoft Business Suite.
Ideal for larger businesses managing multiple departments.
Invoicing tools
- Facilitate electronic invoicing and transaction tracking.
Examples:
MyData (AADE): Greece’s mandatory electronic invoicing platform.
Invoice ninja: Perfect for freelancers and startups, offering easy invoice management.
Zoho invoice: A flexible, user-friendly solution for invoicing and payment tracking.
3. Setting up your accounting system
An organized accounting system gives you a clear financial overview and ensures compliance with tax regulations.
Choose an accounting method
1.Cash basis accounting
- Records income and expenses only when a transaction is completed (i.e., payment received or made).
- Ideal for small businesses with simple transactions.
2. Accrual basis accounting
- Records income and expenses when they occur, even if payment is made later.
- Suitable for larger businesses needing precise financial analysis.
Create a chart of accounts
- List key accounts (income, expenses, assets, liabilities).
- Use a structured categorization system for easier financial analysis.
4. Organizing & Issuing invoices
An effective invoicing system ensures timely payments, improves revenue management, and enhances customer experience.
What an Invoice Should Include:
- Customer & business details
- Invoice number
- Issue date
- Description of products/service
- Total amount & VAT
Choosing invoicing tools
- Use invoicing software or online platforms that simplify invoice creation, sending, and payment tracking.
Integration with your accounting aystem
- Link your invoicing tool to your accounting system for automatic revenue recording.
5. Legal & Tax compliance
Staying compliant with tax regulations is essential for smooth business operations and long-term viability. Understanding your obligations helps you avoid penalties and legal complications.
Follow greek accounting standards (Law 4308/2014): Adhere to guidelines for bookkeeping and invoicing.
Submit tax returns on time: Ensure compliance with local tax regulations, including e-invoicing, VAT reporting, and income tax filings.
Maintain records: Keep all financial documents (invoices, receipts, VAT reports, bank transactions, payroll records) for at least five years, as required by law.
6. Practical tips for better financial management
Monitor cash flow regularly: Review income and expenses frequently to maintain liquidity and prevent financial difficulties.
Automate processes: Use software to automate expense tracking, send payment reminders, and sync with bank accounts.
Work with experts: An accountant or tax advisor can guide you through tax obligations and help you maximize financial benefits.
7. Educational resources
Knowledge is key to effective financial management. With specialized seminars and online courses, you can enhance your skills and manage your business finances with greater confidence.
Institute of accounting & Finance: Seminars on accounting system organization.
Online courses (Udemy, Coursera, LinkedIn Learning): Training programs on accounting and financial management for small businesses.
A well-organized accounting and invoicing system gives you full control over your finances, improves cash flow, and ensures business sustainability. Invest in the right tools, stay compliant with legal requirements, and automate processes to save time and reduce errors.
Useful Business Templates
A template used to identify the difference between the current and the desired state, identifying improvement actions.
A template for evaluating employees' performance, recording skills, achievements, and areas for improvement.
A structured plan outlining how your business will promote, sell, and deliver its products or services to meet revenue goals.
Related topics
Understand Business Jargon Easily
Find clear, easy-to-understand explanations for complex business terms in our comprehensive glossary.
