Establishing an Accounting Department
Every start-up has the goal of rapid expansion, which may be measured by expedited development, bringing a product to market or through growth in sales. A company’s ability to garner investor funding in order to minimize obligations, can oftentimes be driven by one or more of these benchmarks. While growth is every company’s primary objective, it is easy to overlook investing in the accounting function. Many companies consider the accounting function unnecessary overhead, that can be costly. However, it is important to recognize that having a functioning accounting department helps to achieve this primary goal of growth. The accounting function, if well structured, can provide a better picture of how the company is doing financially (on a close to real time basis) and can help management decision making. Additionally, investors will want to see accurate financial statements before they invest.
Here a few things that you can do to develop the accounting department:
By giving the above items serious consideration, you will see the benefits outweigh the costs associated with building out this function.
Written by: Annette Tolentino, Manager