Accounting is an integral part of starting and operating a successful business. Business owners besides designing the website or choosing the perfect business name should also have a solid understanding of the numbers, otherwise, they won’t be able to shine.
If the entrepreneurs do not concentrate on the financials of their business they would later discover that they are running their business at a loss.
How Can Start-ups Enhance their Financial Prospects?
The Small Business Administration or the (SBA) makes a list where they give 11 reasons why small businesses falter and fail. Amongst the top reasons, at least four of them concentrates on the financial aspect of a small business. And the number 1 reason is trying to do everything on your own.
Hire an Accounting Professional
If you do not have a degree in accounting to boast of you need the help of a professional to set up to update your accounting system. To get to the bottom of your financial nitty-gritty, you have to decide whether you should hire an accountant or a bookkeeper.
What a Bookkeeper can do
Most startup requires the services of a bookkeeper. A bookkeeper's services make the running of business a simple uncomplicated affair. A bookkeeper can look after several aspects your business such as for maintaining a record keeping system, produce your financial statements and handle your financial transactions.
How Can an Accountant Help a Startup?
If you are dabbling in a complex business structure or dealing with limited liability Company, you must hire an accountant, especially when you want to grow your business. An accountant can also help you when you need to hire more employees on a payroll.
Many entrepreneurs start small with a part-time business or also work at home to manage the escalating expenses. If this is the case then you may not be able to hire a full-time accountant. However. You can seek help from an accountant for your end-of-the-year tax preparations.
Cash or Accrual Accounting Methods
The two accepted accounting methods are cash accounting and accrual accounting. Some small business organizations choose one amongst the two while other small startups use the accrual method. Employ the services of an accountant to find out which method you can use, suiting your purpose.
VRamaratnam & Company is one of the top Indian Chartered Accountants firm in Chennai, powered by experienced and skilled Chartered Accountants and other professionals.
The firm has a goal to achieve that is, to provide a large range of financial and consulting services to its clients. Their wide spectrum of services includes direct and indirect taxation, Auditingand Assurance Services, and they largely focus on Non-Resident Indians. Their chief interest veers around startups business valuation, business entity registration in India, along with Accounting and Payroll Outsourcing Services.