5 Financial Mistakes Startups Make in Their First Year (And How to Avoid Them)
Starting a business is a dream for many, but the first year is often filled with financial hurdles and learning curves. At MY CA India, we’ve worked with numerous startups and witnessed firsthand how early missteps can impact long-term sustainability. This blog highlights five common financial mistakes startups in India make—and how they can be avoided with proper planning, compliance, and professional support.
1. Ignoring Basic Compliance and Tax Filings
The Mistake:
Many startups delay GST registration, TDS setup, or ROC filings—either due to a lack of awareness or a focus on operations.
How MY CA India Helps:
Our team ensures your business is correctly registered under applicable laws and keeps you updated with a compliance calendar so you never miss a filing deadline.
2. Mixing Personal and Business Finances
The Mistake:
Using a single account for both personal and business transactions leads to confusion during audits and tax filing.
How MY CA India Helps:
We assist in setting up separate business accounts and provide bookkeeping support so your financial records remain clean and audit-ready throughout the year
3. Operating Without a Financial Plan
The Mistake:
Running a business without a defined budget or forecasting model can lead to overspending or underestimating capital needs.
How MY CA India Helps:
Our experts help prepare realistic budgets, forecast expenses, and provide advisory support to improve cash flow management tailored to your industry and business model.
4. Delayed or Improper Bookkeeping
The Mistake:
Waiting till the end of the financial year to organize records creates pressure and increases the risk of filing incorrect returns.
How MY CA India Helps:
We offer regular bookkeeping services aligned with Indian Accounting Standards (Ind AS), helping you stay ready for audits, investor meetings, and compliance reporting.
5. Missing Out on Statutory Registrations
The Mistake:
New entrepreneurs often skip crucial licenses such as MSME, Shops & Establishment Act, or Professional Tax registration.
How MY CA India Helps:
We assist in identifying and securing all mandatory and optional registrations relevant to your startup’s sector and state of operation, ensuring peace of mind.
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