Finance is regularly considered one of the core pillars of any successful business. While money may not legitimately make the world go round, it is a pretty crucial factor in both measuring the success of your business and guiding it on its next steps. After all, if you’re making more money, you aren’t exactly going to see that as a negative. Therefore getting your start up business financing right is essential to helping it progress to the next level.
Hiring the help of someone with experience in accounting for start up businesses can be critical to promoting growth within your company. Here are some of the key reasons as to why:
Accountants Help You Better Understand Your Start Up’s Position
No one knows your business quite like you do. Like a new family dog, start ups are exhilarating and unpredictable. But most importantly they are also extremely personal. (Bear with us on the obscure metaphor).
Accountants can’t dictate the way that your business should develop. Nor would we dream of doing so. What we can provide is sound advice as to your current financial standing and the potential paths that you can follow next.
To refer back to our metaphor – think of us as the head honcho dog whisperer at your puppy training classes. We aren’t going to snatch the leash off you and take control of your business ourselves. However, we can draw on our wealth of experience to advise you on making all the right moves and avoiding the classic pitfalls.
Everyone thinks that they’re pooch is the best on the planet. Then they come home to discover the new sofa has been torn to shreds and a nasty surprise on the kitchen floor. Quite often creative business owners think the same way about their start up.
Whilst your business won’t leave your house in tatters, failing to understand its current position could lead to a financial mess. Accountants help stop this from happening and allow your company to develop in a healthy, natural and efficient manner. From this, it is easier to structure a business plan through which you can implement creative start up business ideas and utilise as a guide for taking the next step towards becoming top dog in the industry (sorry).
Make Sure You Get Your Pricing Right
Accountants can be used as a means of getting the very most out of your business. You can rest assured that those with experience in accounting for a start up business will have been through the motions before. Drawing on this wealth of experience, they can inform you where past clients have excelled and where others have flopped.
One of the more difficult aspects of kicking off a business – ecommerce or otherwise – is knowing how to make sure the price is right. Unlike the iconic eponymous TV game show, this shouldn’t be a case of throwing random guesses at Bruce Forsyth in the hope that it is close to the right answer.
Pricing your product or service correctly takes into account what you have done, correctly calculating your margins and finalising either a service-based or hourly charge rate. We have written a short guide on the matter, but getting advice from an accountant that is personal to your services goes a long way towards developing your business.
We Do The Accounting For Your Start Up Business, You Stay At The Helm
By soliciting help from an accountancy agency, you are essentially adding a new branch to your start up business. However, rather than hiring a new employee, you are getting help from an entire team. And not just any team, but an experienced group with a history of working together with start ups and creative businesses like a well oiled machine.
Accountants appreciate that some creative business owners despise the thought of handling all those numbers, equations and industry terms. The good news is that it is exactly what we love doing. By taking this element of your business off your to-do list, you have more time to focus on the passion that made you start your company in the first place. You are happy. We are happy. Everyone’s a winner!
Use All The Right Tools In The Right Ways
Much of modern accounting takes place through a series of specific-use programmes and apps. While having these apps in the first place is a step in the right direction, we hate to break it to you but having them doesn’t mean that you have mastered accounting.
Like most contemporary working situations, the cloud has become key in managing business finances. Cloud accounting through the use of apps like Xero and A2X allows you to monitor your finances in a digestible, easy-to-understand way on a daily basis. However, not every tool is right for every business. And – as we have mentioned – just because you have them doesn’t necessarily mean that you are using them properly.
Think of it like giving an inexperienced individual all the tools and equipment to build a shed but none of the guidance. Sure, you’ll get your shed but there is a good chance that it will leak, cower in the face of the lightest winds and probably won’t stand the test of time…
Getting help from someone with experience in accounting for a start up business will allow you to use these tools to their full potential and get your finances in the right place for that business boost that you are after.
Better Financial Status Means A Better Reputation
It goes without saying that the better your financial status, the higher the general regard for your start up business. Accountants can help keep your financial incomings and outgoings well ordered and squeaky clean. This gives off a great impression to not only potential investors, but also customers and future employees.
By improving your reputation through a tidier financial status, you are opening your company up to increased investment, sales and staff. All pretty key components for helping your business venture grow from an ambitious start up to what one of our clients once referred to as the “sh*t just got real” stage.
We don’t mean to brag, but here at Raedan we have extensive experience in helping start ups grow naturally through sound financial advice. If you want to know how our past experience accounting for start up businesses can help, contact us.