Any startup entrepreneur has to keep up with accounting in order to grow the business financially. Yes, we know, that is not the most exciting part of running a startup. Nearly 40% of all startup entrepreneurs claim that accounting is the worse part of their work, but definitely one of the most important ones.
See, as your company grows people may want to invest in you. Whether that money is coming from family & friends, angel investors, VCs, accelerator or bank, people want to be sure that they are investing in a healthy business. To demonstrate that healthy state of your company, you need to be able to provide a good overview of your financial situation and value of your business.
The accounting industry is changing fast with all kind of new automated solutions, apps, bookkeeping services designed for specifically for startups that promise to save you time and money. And they will. The only problem there is that you need not forget that accounting and bookkeeping is also a lot about human-to-human interaction.
In most cases the problems you may encounter with your accounting come from the fact that accountant does not know the overall picture of your business goals. Many entrepreneurs do that mistake, narrowing the communication down to only email and rare phone calls. This approach may seem effective at first glance, but don’t be surprised if it results in massive fees for accounting services later on. If you think of your company as a living body, you may think about your accountant as a personal doctor. Take a preventive approach to your company health and meet your accountant regularly.
“We meet our clients at least once every 3 months, but we are glad to meet them every month if needed. This way we both can make sure we are on the same track and know what our next steps should be,” says Tuua Huuskola from Nordic C-Management.
Just like there is no “one size fits all” in personal healthcare, there is no unified solution in accounting. Each business and each client is different. Search for an accountant that will provide you with all the insights and reports you need to make informed decisions about the future success of your business. In other words, a good accountant will always find a solution that works for you and helps you to achieve your business goals.
“We asked our clients how do we make it easier to manage documents and receipts. Their feedback confirmed that a simple well-designed tool would indeed save our clients a lot of time, and money,” says Huuskola. “We plan to start the development shortly.”
A professional network is a very good indicator of who you are working with. A man is known by the company he keeps. Many accounting firms expand their services to include things like business valuation, financial services, strategic marketing and more. Many have their own network of lawyers, investors and other business services that you can greatly benefit and learn from.
“At C Management we organize breakfast events on a regular basis so that our clients can pass by for a cup of coffee, meet other clients, network with them and hopefully, make deals”, says Huuskola. “Plus, we use our own network to assist clients in the business. We can help in various matters whether it is legal or any other business development services. ”
If you have been in business for a while, notice if your accountant is showing these signs at work. If you are just starting, here are our 5 bulletproof tips on the accounting done right.
Nordic C-Management is an accounting company that we use for ArcticStartup and have been very happy with their services. They offer all types of financial management services to companies of all sizes in Finland and Estonia. They have a very personal approach, good electronic accounting, CFO & controller services, among others. Reach out to them over the phone +358 207 346 900 or visit their website.