Entrepreneurs and in particular those just starting, face a rocky path if they are not well prepared for the potential pitfalls that can meet any business. The statistics of the number of companies that fail in the first few years are frightening and very real.

This article is not written to frighten or discourage you, however. Quite to the contrary, we believe that with awareness and some preparation, the road ahead can be a pleasant one.

Most entrepreneurs are passionate about what they do, which is a great place to start, but they are often naïve to the financial realities of creating a sustainable business. The financial aspect of any business, therefore, has to be an absolute priority and the first consideration for any Entrepreneur. This is why we say great Entrepreneurs and great Accountants make for an even greater partnership.

Entrepreneurs and Accountants need to join together on three primary concerns to form a great partnership which will invariably lead towards success – and these are …

Future Projections

A successful entrepreneur needs to be able to predict future trends, needs and the way his customer base and opposition will move. To provide exceptional products or services, you always need to be a step ahead.

Accountants and financial experts can provide the tools the Entrepreneur needs to predict the future, by projecting future revenues, future operating costs and the assets that will be required to service future demand.

Commitments and Compliance

Certain necessities have to be met in any business. Not only the necessity of time and sweat but financial necessities too, like investments for equipment, rentals, salaries and possibly loans for expansion etc.

Compliance is also essential – correctly dealing with financial documentation and of course, taxation matters. VAT and year-end tax returns and year-round taxation compliance are simply part of running a business.

Accountants assist with all of these. Cost accounting, cash flow projections and of course, advice on and the submission of taxes, are all a vital part of managing commitments and compliance.

Measured progress 

The Entrepreneur will learn that there is nothing in business that does not need to be measured. Profits or losses, marketing results, staff progress and obviously your own ongoing financial progress need to be measured, recorded, analysed, and when need be, adjusted to ensure the longevity of your enterprise.

One of the primary causes of failure in business is the failure to measure and adjust when the time is right. Accountants measure financial progress, report on it and advise on when adjustments need to be made. Shared information, awareness and transparency are vital aspects handled by proficient Accountants.

Apart from the smoother running and better communication, security and storage of documentation gained from cloud-based accounting, we help Entrepreneurs through ticking all the above boxes. We also provide not only cost-effective but fixed cost accounting for those who prefer to know their regular bottom line.

We have just summarised a big subject in this article and will expand on each of these three keys for success in future articles. Watch this space.

Contact us to find out more!