Surviving and Thriving as a Startup Requires Strong Finance and Accounting Practices [Podcast]
May 3, 2016
In the following podcast interview, Jim Jenkins, Angelo Poletis, and Michael Lynch of SC&H Group discuss their recent TEDCO Maryland presentation titled, “Back to Basics: Good Accounting & Finance Practices.”
Last year, venture capital investments focused on pre-IPO startups valued at $1 billion or more that could quickly scale and rapidly capture market share. This year however, a shakeup is occurring among investors – they are looking for startups that can survive market fluctuations and thrive by more deliberate scaling.
Today, the most viable startups are the ones that can endure market turbulence due to their sound financial fundamentals and strong business models. So, as an entrepreneur, how can you implement sound finance and accounting practices to survive and thrive?
Many business leaders don’t have the bandwidth to manage all aspects of tax reporting and fiscal responsibility. Fortunately, there are a number of solutions available to startups, and, the most feasible route is often to leverage the expertise of outsourced accounting and finance professionals.
These were many of the key themes discussed by SC&H Group’s Audit and Tax Services teams at the recent TEDCO Maryland presentation. The team highlighted the importance of properly structuring your business from launch outset, and shared several “war stories” about common finance mistakes made by startups.
Financial preparation for a funding event was another crucial topic covered during the presentation.
When seeking to raise funds, visionary entrepreneurs need to answer tough questions from investors about their financial stability and long-term viability. Jim and Mike discussed the credibility financial data and reporting can bring to an investor presentation. For example, the most viable emerging companies institute dashboards as a method to analyze financial and operational metrics on a regular basis.
By developing sound financial practices early on, it is possible to effectively demonstrate the long-term survivability and viability of your business.
To view the full TEDCO Maryland presentation, please click here. In addition, if you have a dream of owning a company with long-term viability, and need the right accounting and finance guidance, please contact Jim, Angelo, and Mike here.