Starting a business is exciting, the thrill of watching an idea turn into execution fuels the passion of an entrepreneur. But every thrill is accompanied with a risk and in case of a startup it is the risk of a failed venture or worse, financial ruin.
It is extremely essential for a startup to maintain checks and balances in place to ensure that the initial burst in growth is not paved with financial or legal mistakes which can come back to bite them at a later stage.
Some Financial Tips
Below are a few tips as published in a blog post by sprinklebit and our comments on it:
1) Get a professional Opinion
Our comment: While the final decision rests with the founder but an advice from somebody who has considerable experience in his/her field is invaluable and can help reach critical decisions. In matters of Finance and Legal, it is highly helpful to get a view from different people to make a well-rounded decision which doesn’t hamper the long term growth
2) Learn some finance
Our comment: We are fortunate as a consultancy that most of our clients understand Finance and demand more value from us constantly. We love this as this helps us continuously improve ourselves and overcome tougher challenges posed by the client. Even if you decide to outsource your Financial activities, it helps a lot to familiarize yourself with basic financial concepts so that you can derive maximum value from your service provider
3) Manage company debt
Our comment: This is where our opinion deviates slightly from the article a bit. There are various ways to fund your startup and there is no single solution which fits all. We believe that an entrepreneur should consider various options of raising funds and choose the source of funding depending on their circumstances and the options available to them through proper scrutiny and analysis
4) Just say no
Our comment: Absolutely. A growing startup needs to maintain a check on its expenses. Any expense must be accompanied with the thought of “how does this benefit my venture?”
The complete article can be read here: http://blog.sprinklebit.com/4-financial-tips-for-startups/
Managing Financial and Legal function in a startup
Following up on the tips to manage your finance, we would also like to point you to this insightful article by Manish Gulati of Aristotle Consultancy where he describes how Aristotle helps its clients in manage some regulatory aspects relates to startups. Below are a few excerpts from the article:
Foreign Direct Investment: Aristotle helps in providing complete legal and financial assistance, completing all the compliance as per the standards required by the law. We assist companies by completing all the compliance, documentation on company’s behalf which if not done timely can have serious implications
Income Tax Return: Aristotle also assists companies during filing of the Income Tax return by completing all the Legal and Financial compliance
Value Added Tax/Professional Tax/Service Tax: Aristotle helps companies by applying VAT/Professional Tax/ Service Tax registration to the local Department in the prescribed forms along with specified fees and necessary Legal and Financial compliance.
External Commercial borrowing (ECB): Aristotle will prepare all the documentation and help in managing the debt.
You can read the complete article at https://aristotleconsultancy.com/resources/bringing-together-legal-and-finance/
You can provide your feedback to Manish by emailing him at firstname.lastname@example.org.
Learn more about accounting outsourcing at Aristotle Consultancy.