Startups Should Start with a CPA
Entrepreneurs who are starting a new business have a lot on their minds. Between fine tuning their million dollar idea, creating a business plan, and finding a source of early funding, setting up an accounting system is often neglected.
However, in many cases not implementing an accurate and thorough accounting system early in the life cycle of the business can be the difference between success and failure.
Obtaining Funding. Having accurate accounting records are important when applying for bank loans and when soliciting potential investors. Put yourself in the bank and/or investor’s position. Would you loan to or invest with your company? Clean records allow you to better showcase the financial position of your young business to lenders and investors.
Measuring Results. There are a variety of tangible and intangible ways to measure the success of your business. From a financial perspective, cash flow and profitability are just a few of these key indicators. Without a strong accounting system, it can be difficult to benchmark your business both historically and with other businesses in your industry.
Making Decisions. Starting a new business often requires a lot of “trial and error”. Timely and accurate accounting information can help ease this process by highlighting what “works” and what doesn’t. By having this information at their fingertips, an entrepreneur is better positioned to spot trends and adjust their strategies or objectives to achieve profitability and cash flow goals.
For tips on getting started, please contact an Anders tax consultant.