Small business owners or startups of any kind, mainly tech, start off by borrowing money and the money they borrow isn’t going to sit in the company’s bank account rather it will be thoroughly spent on the company priorities such as product development, hiring a concise yet well-motivated team to kick start the project. As a young company, the people in charge of mainly the COO who is entrusted with the company’s future projections can make rough financial projections but nothing is for certain and that is where the CEO needs to play it smart and make decisions that are usually overlooked by many entrepreneurs and founders are alike.
To start off, the company needs to understand that the cash in the bank isn’t going to stay there forever and predict when they will start getting affected by the lack of it. When should the revenues start to kick in is the ultimate question and for that, you need someone, who is a professional and has done it with different companies at a similar stage.
Short on cash to outsource a whole department? What the CEO needs is to search for the rarest gems in the city and with a little bit of help and a bit of word of mouth, you can get a cheap tax return accountants that can have the prowess to guide the company to sunny shores and make informed decision based on the position that the company is in.
You need not hire an accounting servicer when you badly need it and that is around the time of sorting out your company’s annual accounts or doing your company’s first tax return but way before it to lay down some financial infrastructure to build your company’s future on.
It goes without saying that the financial infrastructure is the core, the backbone, of the company. The infrastructure for a small company starts with bookkeeping and it includes inventory tools, salesforce, and Human Resource tools.
So, for a company to run smoothly it has to incorporate the mentioned functions properly. The system would collapse if the customers aren’t invoiced properly and if the customers aren’t invoiced properly then they would not pay, and if there were no payments received then had there been a clear credit collection policy then the company would be able to sustain the loss.
Set up a professional accounting system and in today’s world, it is pretty easy. You can get the apps required for any business at a minimum cost and relieve the company of doing their accounting on Excel and putting in tedious amounts of work which could be done in mere minutes.
Today’s tools are much helpful and one example is the automated invoice reminder that doesn’t require you to remind your customers or clients to pay rather it does it on its own with reminders that have the right amount of frequency.