While nobody dives into founding a new business without some idea of how it’ll play in the marketplace (or without, ideally, six months of capital just to keep running), there’s a lot of room for financial error, especially for people who don’t come from accounting backgrounds.
As Hicks Crawford writes in SAP Business Trends,
It’s not easy for a newcomer to know all the details of how invoices have to be issued, the intricacies of VAT and taxation systems.
Just as important as getting a solid grip of product development and marketing, new founders should have rock solid control over their accounting department, including expenses, cash flow invoicing, and new tax rules. The clear solution would be to hire an accounting, but many startups can’t spare that expense so early on. What Crawford suggests is outsourcing the accounting work by making use of the accounting software programs currently available, which offer automatic invoicing, regional tax system updates, and expense tracking. Hey, do you think maybe Due can help out in this department?
For more information about how to keep that startup budget under control, read his article on SAP.com.
