10 Points Every Entrepreneur Must Know About Finance And Accounting
- 7 out of 10 businesses fail because of poor cash flow management. Cash Flows, not necessarily profits or assets are key to keep your business running!
- There are more than 300+ free tools for finance / accounting. Free tools don’t matter, knowledge & actionable advice matters. Choose wisely!
- 3 Key metrics for every entrepreneur to know – Cash Burn Rate, Net Company Equity, Profit Margin Ratio YoY
- Engage in sound discipline. Manage your business finances and personal finances separately. You will see astounding results.
- Respect and Protect your Equity. You should know that Equity is your costliest asset.
- Be prudent to report all profits, easing the need to borrow loans and simultaneously earning goodwill for a great business!
- To be ready to scale for future, your financial data is key to drive your decisions. Don’t ignore them.
- Checks and Balances, keeps your business stabilised and is a key to success that many entrepreneurs forget in their journey.
- Consider/Avail all the tax planning opportunities for a wise utilization of funds resulting in a promising business.
- To forecast financial risks and employ preventive measures, a profitable business calls for special attention on Risk Management.
More than half of the entrepreneurs never realise that their choice of an accountant is the key to data driven decisions & better financial decisions. The activities undertaken by these accountants are mostly transactional in nature, ignoring the managerial and strategic aspects. At Relativity, we provide accounting services that will suit your personal and business goals. To realize the unexplored dimensions of an accountant, take a quick look here.