Being an entrepreneur in today’s highly competitive digital world can be challenging, with 90% of new businesses failing within the first five years. According to a recent survey from Flair, 38% of these new businesses fail because they run out of money.
Navigating the many financial hurdles can be a stressful endeavour that distracts business owners from the tasks that really matter, like building on value propositions and delivering fantastic services.
Fortunately, the right accountant can provide critical guidance when businesses need it most. This article explores how accounting teams can provide invaluable advice for overcoming financial challenges for startups and build resilience. Read on to learn more.
Understanding Financial Challenges for Startups
Entrepreneurs face an array of financial obstacles when launching their brand. These challenges for startups include (but are not limited to):
- Tax compliance: Understanding tax obligations and regulatory compliance is a challenge for around 19% of startup ventures.
- Cash flow management: Ensuring there are sufficient funds to meet operational requirements with enough money left over to invest in growth opportunities.
- Financial forecasting: Accurately predicting future economic performance and mitigating risks.
- Debt management: Ensuring debt obligations are always met without compromising on overall business performance.
- Raising capital: Compiling financial information to apply for funding to spur business growth.
Accountants for Startups: Solutions and their Benefits
Accountants for startups offer a range of services to help entrepreneurs overcome financial hurdles and thrive in the fast-moving global economy. Their solutions and services can include the following:
Business setup: Accountants for startups can provide businesses with all of the services they need to hit the ground running and mitigate financial risk. This can include registering new businesses with government authorities, choosing the right business structure, and navigating relevant legal complexities, such as obtaining necessary permits, meeting employee minimum wage requirements, and delivering mandatory benefits.
Securing funding: Once a brand is established and the business is running smoothly, entrepreneurs will soon look for investment opportunities to help their business grow. Accountants can help develop business plans, create financial projections, and prepare documentation for investors. All of these services help demonstrate credibility and financial acumen amongst potential investors.
Financial technology advice: Accountants keep their finger on the pulse of finance and accounting technologies to help businesses streamline financial management, minimse errors and gather data insights to inform decision-making.
Tax services: From tax planning to preparation and eventual filing, accountants can help brands minimise tax liabilities and avoid costly compliance mistakes. Moreover, they also keep track of tax regulation changes and let companies know ahead of time if they will be affected, saving them time and effort in checking the latest news themselves.
Financial training and education: Some entrepreneurs can hugely benefit from the educational services accountants provide. For example, some accountants can advise on altering pricing structures to boost profitability, offer tips for lowering supply chain costs, enhancing risk management strategies and more.
Data analysis: Accountants for startups can provide regular financial analytics reports to help brands maintain optimal financial health. From understanding market trends, to tracking KPIs, these crucial data insights can help brands make informed decisions ahead of global expansion projects, mergers and acquisitions, company restructuring projects and more.
INAA: Helping Entrepreneurs Access Vital Financial Advice and Support
Whether you’re just starting on your business journey or need help overcoming financial challenges for startups, joining the INAA connects you with accounting experts that can help you realise your business ambitions.
Our worldwide accounting network is dedicated to keeping up with the latest industry developments and sharing specialised knowledge through exciting events, resources and collaboration. See our INAA clients page to learn more about how we can support startup businesses, or sign up for INAA membership today.