START UP FINANCIAL REPORTING ISSUES
Delay in setting up financial software and related financial controls
Have you got drawers, credenza files or trays full of documents that are out of control and needs tender loving care?
Too often start-ups leave this side of the business until the last moment. If appropriate systems had been setup earlier, it will help enormously in providing timely financial/management data and peace of mind, that this area of the business is under control.
Whether the decision of not seeking professional accounting help is postponed due to cash flow or it is just too hard to deal with, a delay in introducing systems and procedures will most likely cost you more money in the end to fix or catch up (when the first statutory deadlines approach or are missed). It also means that you may not have received critical financial information during the first 1 to 2 years of your business operations, that invariably, could have aided you in making pertinent decisions, that would improve the bottom line, and potentially keep the start-up solvent.
Financial software may initially be a little scary for those with no background. The task of a professional is to take this fear away by
i) Setting up the structure of the file to capture vital management information such as profitability of each business segment/location.
ii) Training you or your selected staff (with minimal experience) in entering transaction data correctly, reconciling and producing great management reports on a timely basis, be it weekly, monthly or even daily, in order to run your business more effectively.
iii) Training in the functionality required to best utilize the features of the software, whilst ignoring the rest of the buttons, drop down lists etc. that are not relevant to your business.
The result of the above means that statutory tasks required, such as annual financial statements and tax returns, are so much easier (and less costly) to provide.
Excel Spreadsheet Shortfalls
More often than not, an excel spreadsheet will not give you the relevant information that you need to prepare accounts and understand each month, how the business is really performing. It usually only reflects the historical transactions that have gone in and out of the bank. If so, it does not give you effective control over Trade Debtors and Trade Creditors. Therefore limiting the collection of overdue debts and the orderly payment to creditors when cash flow is forthcoming.
Potential Deficiencies in the Role of the Accountant
Accountants assigned the role of preparing your annual accounts, often prepare the accounts in a different format from the information given to them.
Giving you advice on how your business is performing is also not normally provided.
The accountant often only recommends one software product due to either lack of knowledge of other financial software products or practice requirements to use one product only. This may result in using a product that does not satisfy all your needs.
My Services- Customised Accounting Solutions
If you engage my service, i can provide a fully customised solution to meet your needs at an affordable price. I look forward to meeting you and sincerely hope I can be of service to your business.