The modern-day industrial environment is witnessing an escalation of tech start-ups athwart the globe. A management expert does not necessarily spearhead these start-ups. At times it is a team of excellent techies who come together to create their dream start-up. Their core competencies and focus may not be inclusive of a key business component. Well, it’s the accounting that we’re referring to. An efficient accounting system is the backbone of every business. There isn’t a business that operates without any money! A technology-based start-up is no exception to this.
Why hire an accountant?
If ever a tech business requires an accountant, it is during the initial stages. This does not imply that they don’t need an accountant after that. Well, at any given point of time, it is highly advisable to hire a word-class accountant. The accounting needs of a tech company are quite complex. To begin with, there is a significant investment in the start-up. In other words, you have spent money even before you’ve started making money. So, there begins the need to account for your money.
Handling your cash flows:
As a start-up, your expenses are more likely to hit the roof even before you realise it. Keeping track of your expenses against your income is vital. Naturally, healthy cash flow is what keeps your business going. If there is no accountant in place to partner with from the beginning, things will worsen sooner or later. And if you’re new to accounts, trust us; it’s not going to be your cup of tea. Managing your cash flow doesn’t end with the initial weeks. It’s an on-going process that needs diligent attention and care. Maintaining cash flow statements, preparing forecasts for the future, analysing them and providing timely information can mean a lot to the decisions you make.
Dealing with your assets and liabilities:
Your tech start-up is sure to have high-value assets with fairly high depreciation rates. This would be owing to the nature of the industry where products and services become obsolete rather quickly. Speaking of liabilities, you will need to comply with the required legislation. You will also have to provide for any after-sales services or upgrades that you offer. And on goes the list. Accurate accounting policies and estimates need to be in place to ensure your assets and liabilities are properly accounted for.
Why Accounting Inc.?
Hiring an accountant will help you with your bookkeeping. But hiring us will give you much more. We help you walk your way towards a steady and consistent growth of your start-up. The highly specialised teams at Accounting Inc. provide you with accounting & tax services, management advice, and compliance requirements. Being a tech start-up, you could also find yourself eligible for research & development tax credits that you can benefit immensely from. And yes, we can work this out too!
As a passionate techie and an aspiring entrepreneur, we know what your start-up means to you. While you focus on creating wonders with technology, let us shoulder your accounting and financial needs. We would love to be part of your journey from a start-up to a successful tech company, and we wish you best luck! Please Contact Us for a free informal consultation.