Many entrepreneurs believe not having access to creative tools, software and space are the biggest obstacles to getting a business off the ground. According to Forbes, lack of capital is the biggest reason why startups fail. Having an accountant on your team from the beginning can make the difference between success and having to start over. Below are several reasons it’s important to have an accountant on your team from the beginning.
Help Attracting Investors
When starting a business, the entrepreneur-turned-owner is typically the company’s only employee. This means running day-to-day operations, marketing, networking, and many other roles. Which leaves little time to manage the finances. An accounting firm can alleviate some of that extra burden by keeping the books and records up to date. Accurate books and records, along with timely financial statements, are key to raising capital and the success and growth of a business. As an added bonus, investors love seeing an accountant on the startup team.
More than Tax Returns
Filing your yearly tax return and making sure your company is compliant is going to be a major part of an accounting firms’ job, but there are many other areas they can help with. Payroll questions, entity planning, state and local taxes, fundraising, and valuations are all important items that deserve attention from any entrepreneur looking to start their business. With an already complex tax code along with recent tax reform it is now more important than ever to have a knowledgeable team of accountants and advisors to not only keep your company compliant, but to make sure you are taking advantage of any items that are available for your startup.
Local Resources to Help You Grow
Another benefit of partnering with an accounting firm that specializes in working with startups and entrepreneurs is tapping into their network of potential investors, business relationships, and entrepreneur resources. The St. Louis startup ecosystem is rich with hubs of activity that are available to all entrepreneurs.
Between shared workspaces, incubators, accelerator programs, competitions, venture capitalist firms and grants, there are endless opportunities for entrepreneurs to fund and grow their startup visions in St. Louis. The shared workspaces give a lower cost option to traditional office spaces, not to mention the close proximity to other like-minded individuals. Accelerators and incubators help startups by providing money or operational resources, which can sometimes even include free rent at a shared workspace! Competitions, venture capitalist events, and grants are more ways for startups to show off their ideas and companies and fund their startups. With an abundance of opportunities, St. Louis entrepreneurs have all the tools to create their dreams.
With the many resources available in St. Louis, the lack, or mismanagement, of capital shouldn’t be the reason your startup doesn’t succeed. Bring an accountant to your team and watch your company grow. Contact an Anders advisor, or learn more about the Anders Startup Group.All Insights