A great business idea is just one of the few essential steps that play a vital role in its success. While many entrepreneurs develop excellent ideas, not all of them manage to sustain their business, primarily because they fail to execute the right strategy.
One effective approach many successful startups in Thailand implement is outsourcing tasks unrelated to their company’s core competency, such as accounting. Professional accountants bring their expertise to the table and help startups at various stages of their entrepreneurial journey.
Help entrepreneurs build good business habits right from the beginning.
Many startup business owners in Thailand tend to neglect their accounting and bookkeeping functions. Consequently, they panic when the tax period comes since their bookkeeping files and folders consist mainly of various receipts. Engaging with a proper accounting Thailand firm will help startup entrepreneurs commit this mistake and help them create the appropriate business attitudes right from the start.
Good business habits help prevent future personnel from stealing and enable business owners to keep a tighter rein on costs. Also, they would always know where their company stands financially with correct and up-to-date accounting records. A competent accounting firm can also teach them the know-how of accounting and bookkeeping, so they understand what is happening each step of the way.
Provide essential information and analysis when seeking investment capital
Whether seeking funding from angel investors or applying for a small business loan, up-to-date and accurate bookkeeping and accounting, along with profound and astute financial statements, could make a significant difference between obtaining the money required for the business to expand or having to give up early in the game.
Accounting outsourcing services offer startups with the right financial statements and bookkeeping records, together with financial statements’ data’s explanation, which help the company excel amidst other small businesses which are not as thorough and prepared.
Help determine the entrepreneurs’ burn rate.
Many startups do not know their company’s burn rate: the rate at which the company spends its cash supply over time to stay in business. Understanding the company’s burn rate helps startups, particularly tech startups or other early stages businesses with a long lead time, to know how much time they need to wait before they start generating income from sales. Fortunately, bookkeeping and controller agencies can help determine the company’s burn rate.
Offer reliable advice in the company’s critical first years.
A reputable accounting services agency is more than just a data entry operator or provider. It also provides sound advice and insight regarding the company’s financial data, forecasts and budgets, especially during its establishment and initial years of operation.
Professional accounting services can help startups with the following essential actions:
- Determining the right business structure
- Business plan’s financial analysis
- Choosing the right type of accounting software
- Setting up a business bank account
- Compliance with the government’s rules and regulations
- Tracking daily business activities’ expenses
- Separation personal from business expenses
Once the company is off the ground, accounting agencies will help business owners carry out certain actions on an ongoing basis, which include:
- Explanation of the financial statements
- Overseeing the payroll and payment processes
- Advice on estimated tax payments for the year
- Compiling and filing financial reports, taxes, and other necessary paperwork on time to relevant authorities
Help the company scale and grow.
When startups are ready to grow their business, accounting firms can become an integral resource which offers advice and aid them to manage the necessary process, including:
- Helping them identify growth areas by offering insight on cash flow patterns, business financing, inventory management, and pricing.
- Offering advice on equipment and property purchase and leasing.
- Prevent them from getting audited.
- Prepare and guide them through an audit (if required).
- Generate financial forecasts to make better business decisions
- Work with them to devise a business budget plan which supports the business goals
- Offer advice and resources to help them scale their business properly
Choosing the right accounting services provider in Thailand
Accounting outsourcing services firms help streamline accounting function and enhance business management overall efficiency. They also keep the company from violating the country’s rules and regulations and are charged with hefty penalties.