Early Stage Start-ups

Overview

Accounting is the backbone of any business. So, one of the first things that start ups have to sort out is the accounting part. Accounting is an elaborate term for all those things that include numbers. This includes all the financial part and every start up has to make sure that this is managed properly.

Accounting is not only chronological arrangement of transactions. It is a much wider concept, which includes-

1) Financial Accounting : All the bank transactions, details about the sales and income and the expense statements need to be recorded.

2) Tax Compliances : TDS & GST are an important part of any business. Accounting is integral for filing of taxes and regular compliances associated with a business.

3) Other Compliances : Company audit, Income tax returns are nearly impossible without proper accounting. All these functions are dependent and thus require the basics of accounts to be practised on a regular basis.

4) Management Decisions : The decision that the management takes will also depend on the accounting figures. The management has to take into account the sales report, cash flows and profit and loss statements in order to determine the path that the company needs to follow.

Process


The process that needs to be followed


Bookkeeping and basic accounting are the areas of concern for any start-up. Every start-up has to ensure that they keep a record of different transaction and documents. Following steps should be followed in the regular course of business.

  • Collection of all accounting information has to done on a regular basis. This includes bank statements, invoices, expense statements, cash statement etc.
  • It is equally important to make sure that all the correct data is collected which is compiled into a report and given to the management. This compilation of data has to be accurate because the management is going to take important decisions based on this information and report.
  • For any company to survive TDS, GST and income tax compliance is necessary. The rules have to be followed failing which the company will have to face serious repercussions.
  • If you do not have much knowledge about accounting then it is always better to take advice from a qualified professional who will explain you all the rules and regulations in details.
  • It is equally important to have regular meetings with a CA in order to understand the financial status of the company.


What we do?


This is how we make the process simpler for you.


1) Position paper :
We provide position paper as per the nature of your business. This will help you understand your tax liability.

2) Common drive :
We will arrange all the data on cloud in a systematic way. You can easily access this data at anytime and from any place.

3) Tracker :
This will help you understand that all the compliances are being done properly and they are being done as per the committed schedule.

4) WhatsApp group :
This will help in easy communication. It will also make it easier to record the different transactions properly.

5) MIS reporting and monthly reviews:
It is equally important to have proper reports and reviews in order to understand if all the policies are being followed. It will also give a better idea if the accounting procedures are being followed properly. It will also help in making any changes for better company management

Start up journey is a difficult one. Handling start-up finance needs in-depth knowledge. There are so many things that you need to do. Accounting is one such aspect. But not to worry! We are there to help in making your journey smooth.



FAQs :


1. What are early stage startups?

The seed stage of a new business venture or startup is the early stage. Early age startups are typically only a couple of years old.


2. What is the easiest way to begin a startup?

The easiest way to begin a startup is to find customers or clients for your services. This means you have to first define what services you can provide.


3. What are the biggest startup opportunities today?

Any startup which provides services online can capture most of the customer base. It is important to gauge the market and work on the needs of your customers.


4. What are investors looking for in a startup?

Investors are looking for:-
a. A business plan
b. A competent team
c. A well thought out risk management plan
d. Clean structure and governance


5. How do I get funds for an early stage startup?

Following are the sources to secure funding for a startup :-
a. Angel investor
b. Venture capital investors
c. Equity shares
d. Join a startup incubator or accelerator
e. Crowd funding


6. What is angel investment?

Angel investment comes in at a very early stage for start-ups and is considered as an asset class from investor's perspective.


7. How long will the funding process take?

It typically takes 6 weeks from the time of your application submission to final approval and the actual funding date. Once fully funded, you should expect to receive your funds within 2 weeks.


8. When does the money from investors actually distribute to my business?

Typically 14 days after funding is completed.