When starting a business, the product is your priority and everything is secondary to the product. It’s the product that you believe in and is working so hard for! As soon as the idea is conceived, you think of investment models, partnerships, marketing, and even what the primary platform (website, social media, etc) would look like.
Since this is the digital age and everything must be “instagrammable”, let’s add content creation and aesthetics to our plate too! Amidst all the things which we ‘must’ be doing to develop a start-up worthy of our dreams and hard-work, accounting and financial matters (other than investment) take a back seat. It is mostly after the investment is done and the business is established that business-owners begin to think of numbers.
Why must numbers and accounts come later and not be part of business planning and development?
As your local accountant in St. Ives and Greater Sydney, we specialize in helping Start-up businesses in their journey starting from a business plan, cash flow projections, break-even analysis, and build a future forecast for your business.
Below are some of the advantages of hiring a professional accountant while you are starting a new business
Start-ups are a gamble which, as a business owner, you are already aware of. For many, the need for a professional Accountant may seem insignificant especially when there is already a long list of “Must Haves” and human resource to be invested in.
However, having an expert as part of your start-up is your gateway to objective, reliable, and result-oriented advice which is purely for your business. It’s not something you’re discussing with a bunch of friends, family members, or professional acquaintances. As your local accountant in St. Ives and Greater Sydney, MYM Accounting & Business Consultancy can build a rock-solid foundation for your accounting and finance matters.
Creating a budget is in itself a tedious and thought-provoking task that will require you to think of all related costs that your business may incur in the specified time. Add to it the constantly evolving economic dynamics (inflation especially). Accountants specialize in numbers and metrics will be able to think of various expenditures, obvious and hidden, which you will need to make at the time of initiating your start-up and also during its life.
Whether your start-up caters to B2B clients or B2C clients, you will have to deal with third-party payments. For this, you need financial literacy including know-how of regulations, payment modes, applicable taxes, and even chamber certifications which your start-up must acquire before commencing financial transactions.
There will also be government taxes (GST), tax returns, FBT return, and subsidies to take care of. Add to these the internal financial responsibilities such as annual financial statements, monthly variance, company secretarial items will also need to be taken care of. As your local accountant in St. Ives and Greater Sydney, MYM Accounting & Business Consultancy we can take care of all your day to day bookkeeping, reporting and legal and tax compliance.
It is possible and natural for entrepreneurs to apply for loans, seek investment, or get a new partner to share the struggle of a business. For all these, financial forecasting is essential. A well-done business plan includes a breakdown of the total investment, a list of expected initial and monthly expenses, an economic forecast, and an expected return. This information is fundamental for obtaining external funding and also for business owners to have a financial expectation plan for their start-up.
Your start-up might be based on your passion for a product or service you want to provide, and also to create an impact. Both these reasons make your business model special and unique. However, revenue and profit are equally important for the sustainability of a concern. Beyond personal motivation, profit is a significant driving factor, especially for start-up owners who put their savings and those of their loved ones and believers into a venture. This is exactly where an Accountant’s job comes into play.
Accountants have gone through extensive training which has developed their insightful and result-oriented skillsets. They can offer ample financial information and suggestions to create a profit-based model. Their specialization is in their ability to analyze similar business models, gauge competitions, and make profitable suggestions. Having them on-board will also keep you (as the business-owner) updated on the numbers and the market benchmarks!
Whether you are in the planning phase or have already established your brand, you, at all stages, need an Accountant’s support to understand, gauge, and analyze financial risks and gains. As an amateur, you may not realize in the beginning, but each business move is tied to financial risk. A professional Accountant can help forecast the outcome of what may seem pure business/operational decisions.
Therefore, you need someone who understands and can regulate finances, create monthly reports, evaluate business metrics, and is aware of your financial position (at the time of starting and later too). Equally important are the financial insights which only the Accountant can provide which will be invaluable in devising effective business strategies.
So now you know, having an expert accountant can benefit the business planning and development more professionally. It will add quality, consistency, and also a system for financial check-and-balance to your plans. Let’s also not forget that their help will be highly significant when thinking along the lines of registering or expanding the business!
Disclaimer: This is a generic Information & post; content about the services can be changed from time to time as per your requirements and contract. To get the latest and updated information, contact us today or visit our website.