The First 90 Days of a Company: Financial, Tax and Management Checklist

The first 90 days of a company are a decisive period for turning the structure created on paper into an operation capable of functioning effectively, meeting its obligations and producing useful management information. This is when processes, responsibilities, cash flow, accounting and priorities begin to be tested by the reality of the business.

A successful transition between formally setting up the company and running it on a daily basis requires a structured approach. Starting to sell is not enough. The company needs to understand how money moves in and out, who makes decisions, what information management needs to receive and which obligations must be fulfilled.

During the first 90 days, the company should establish a solid foundation, define priorities and create simple routines that can grow with the organisation. The sooner this structure is in place, the less likely the company is to need major corrections when the volume of work increases.

Why are the first 90 days so important?

The first three months provide an important opportunity to implement processes before habits become difficult to change. This is also the period in which the entrepreneur begins to understand whether the assumptions made before incorporation match the actual behaviour of the business.

Revenue may take longer to arrive, certain costs may be higher than expected and some activities may consume more resources than initially estimated. The objective is not to predict everything perfectly from the beginning, but to create a system that makes deviations visible quickly.

A company that can monitor financial, commercial and operational information from an early stage is better prepared to make decisions about investment, recruitment, pricing and priorities.

First 30 days: organise the operation

The first phase should focus on implementing the basic processes required for the business to operate. After incorporation, it is important to confirm that all the conditions necessary to begin activity are effectively in place.

Confirm commencement of activity

The declaration of commencement of activity should be properly completed before the business begins operating. For resident legal entities, official information is available through the commencement of activity service on the Portuguese government portal.

This stage influences the company’s tax framework and should be aligned with what the business will actually do.

Prepare invoicing

The company should define how commercial documents will be issued, stored and controlled. The chosen system should be appropriate for the size and activity of the business without creating unnecessary complexity.

The Portuguese Tax Authority provides information on issuing invoices and receipts, including the main deadlines and applicable rules.

Separate personal and business transactions

One of the most important initial actions is to establish a clear separation between personal and business transactions.

This discipline facilitates accounting, bank reconciliation and cash flow analysis. It also gives management a clearer view of how much money actually belongs to the business and which financial commitments the company has.

Create a document management system

Invoices, contracts, receipts, bank documents and tax information should have a defined storage location and a consistent filing routine.

The objective is not to create bureaucracy. It is to ensure that everyone works from the same information and that documents can be found quickly when they are needed.

Days 30 to 60: measure and diagnose

Once the basic operation is in place, the second phase begins: understanding what is actually happening in the business.

Between days 30 and 60, the company should already be producing enough information to compare expectations with actual results.

Monitor revenue and expenses

There is no need to begin with a complex reporting system. A simple structure showing revenue, costs, payments, collections and available cash may be enough to provide the first clear view of the business.

What matters most is that the information is current and easy to interpret.

Control cash flow

A company may generate sales and still face liquidity difficulties. Cash flow control should therefore form part of the first 90 days.

Management should be able to see how much cash is available, which payments are expected, which customers have not yet paid and what the company will need over the following weeks.

Identify variances

If costs are above expectations or sales are below forecast, this phase should be used to identify the cause.

Variances may result from poorly defined prices, lower-than-expected demand, unplanned expenditure, excessively long collection periods or inefficient processes.

The lessons from the first months are particularly valuable because they allow decisions to be corrected before small problems become larger ones.

Days 60 to 90: create a management routine

In the third phase, the focus should move from organising the business to actively managing it. The company now has some real operating information and can begin to establish more consistent monitoring routines.

Define indicators

Every company needs indicators that reflect its business model. Some of the most useful at this stage may include:

• revenue;
• gross margin;
• fixed costs;
• cash balance;
• accounts receivable;
• accounts payable;
• number of customers;
• average transaction value;
• profitability by product, service or project.

The selection should be strategic. Monitoring dozens of indicators without the ability to interpret them is less useful than consistently following five or six metrics directly linked to business decisions. For a deeper analysis, see the 10 financial indicators every manager should monitor each month.

Create a reporting routine

Management should receive information at a defined frequency. Depending on the size and activity of the business, it may make sense to analyse cash flow weekly and financial results monthly.

The objective is to build confidence in the information and avoid decisions based only on perception. A management accounting structure helps transform these figures into useful information for monitoring margins, costs, cash flow and results.

Review priorities

The plan created before operations began should not be treated as fixed. After 60 or 90 days, the company already has real information that may justify changes.

Certain products may be generating more demand, some costs may need to be reviewed and particular sales channels may be producing stronger results.

A structured approach allows priorities to be defined based on actual performance rather than continuing to execute a plan that is no longer aligned with the market.

What if the company starts hiring?

When employees are hired during the first 90 days, the company takes on additional administrative, employment and Social Security responsibilities.

Registration of legal entities with Social Security is mandatory and occurs automatically in the situations provided for by law. Portuguese Social Security provides specific information for employers.

Employee admissions must also be reported through the applicable channels. The rules and procedures are available in the Portuguese Social Security guidance on employee admissions.

Beyond formal compliance, the company should establish onboarding processes, clear responsibilities and effective internal communication.

When new people join the business, aligning expectations from the beginning helps avoid overlapping responsibilities and execution gaps.

The role of accounting during the first 90 days

During the first 90 days, accounting should not be used only to meet tax obligations.

Commercial companies are required to maintain organised accounting records in accordance with Portuguese law. The legislation also requires accounting entries to be supported by documentation and properly recorded.

The Portuguese Corporate Income Tax Code establishes the main accounting obligations applicable to companies.

However, the company should go beyond compliance. Accounting information can help management understand margins, costs, profitability, cash flow trends and the capacity to invest.

This perspective is essential for turning accounting into management. Learn more about how management accounting turns financial information into decisions.

Which management meetings should take place?

Even in a small company, a basic review routine helps keep decisions aligned.

During the first 90 days, a monthly management meeting may cover:

• sales and commercial performance;
• available cash;
• accounts receivable and payable;
• costs above budget;
• main challenges and opportunities;
• recruitment requirements;
• planned investments;
• priority actions for the following month.

Where planned investments require additional resources, the company should assess financing and incentive options in advance, together with their impact on cash flow and the financial structure.

If the company is planning Research and Development activity, it may also be relevant to assess whether eligible expenditure could benefit from SIFIDE, Portugal’s R&D tax incentive.

Where several shareholders, managers or other stakeholders are involved, this routine also helps create a shared view of the company’s position.

Internal and external stakeholders may require different levels of information, but the underlying data should remain consistent.

Quick wins also matter

A newly established company cannot solve everything at the same time. It should therefore identify a number of quick wins.

Quick wins help validate decisions, build confidence and demonstrate that new processes are beginning to produce immediate results.

This may involve eliminating an unnecessary cost, improving collection times, simplifying invoicing or ensuring that the first financial report is available when management needs it.

These improvements do not replace strategic work, but they help build confidence in the way the company is being managed.

Mistakes to avoid during the first 90 days

Managing only through the bank balance

The bank balance alone does not show profitability or all future commitments.

Delaying document organisation

Small delays accumulate quickly once the volume of transactions begins to increase.

Failing to define responsibilities

When several people are involved, everyone should know who decides, who executes and who monitors each area.

Trying to grow too quickly

Growth without control can increase sales while simultaneously worsening cash flow, operational capacity or profitability.

Failing to review the initial plan

The first months generate information that did not exist when the business was originally planned. Ignoring that information means losing one of the main advantages of this stage.

First 90 days checklist

First 30 days

• Confirm the tax framework.
• Prepare invoicing and document archiving.
• Organise the company bank account.
• Define administrative procedures.
• Identify responsibilities.
• Create an initial cash flow control process.

Days 30 to 60

• Compare revenue and costs with the budget.
• Analyse payments and collections.
• Identify relevant variances.
• Review prices and costs where necessary.
• Test the processes defined at launch.

Days 60 to 90

• Define management indicators.
• Create a reporting routine.
• Review strategic priorities.
• Assess recruitment or investment requirements.
• Define objectives for the following quarter.

How can FHH support the first 90 days?

The first 90 days are a transition between formal company creation and real business management. The objective should be to equip the business with simple processes, reliable information and clear priorities.

FHH Genesis was designed specifically to support this phase, creating a structure aligned with the needs of the project and preparing the company to make decisions with greater control.

If you are starting a company or would like to organise the first months of activity, speak with the FHH team.

Frequently asked questions

What should be prioritised during the first 90 days of a company?

Priorities should include tax compliance, cash flow, invoicing, document organisation, internal responsibilities and the creation of a minimum level of management information.

Is reporting necessary from the beginning?

There is no need to create a complex system immediately. However, a company should begin monitoring revenue, expenses, cash flow and other indicators that are fundamental to the business from an early stage.

When should management control begin?

It should begin as soon as there are enough transactions to generate relevant information. Establishing the routine early is much easier than trying to reconstruct several months of information later.

Should the initial plan be changed?

Yes, when real information justifies a change. Planning should guide the company, but it should not prevent decisions from being adjusted when new data becomes available.

Preparing for the next 90 days

Success during the first months should not be measured only by sales volume. It should also be measured by the company’s ability to understand the business, identify problems early and make decisions based on reliable information.

By the end of the first 90 days, the company should have a clearer view of its operations, a basic financial routine and a defined list of priorities for the following quarter.

From this stage onwards, it makes sense to deepen the analysis through the main financial indicators and a consistent management accounting structure.

To structure this phase with specialist support, schedule a meeting with FHH.