Running a business can be very demanding. There are tons of things that demand your attention, customers to reach out to, and paperwork to keep up with. Unfortunately, in the middle of a frenzy, many entrepreneurs may drop the ball on the most crucial aspect of their businesses. This is where they start making financial mistakes.
If you are caught up in a rut, you should seek expert assistance. While I have made major financial mistakes in my business, I was able to find help from a trusted firm offering accounting and bookkeeping services in Singapore, and I got my groove back.
Here are a few key financial mistakes you should be aware of and how I managed to quit doing them altogether.
1. Dreaming of an investor
Like many start-up entrepreneurs, I spent too much time hoping and hustling to raise outside capital. Little did I know that I should have spent the time and effort in making the business work. You must have a clear financial plan if you plan to start your business successfully.
Firms offering corporate accounting services in Singapore, such as Ackenting Group, can ensure that you have the right financial knowledge to get started. From key analysis on your financials and risks, they can ensure that you do not make the wrong decisions that may damage your financial capability. The most important aspect of start-up business is capital, and their goal is to ensure that you have enough to grow and expand your business.
Once I was able to prove that my ideas could make money, I came up with a clear plan. This made it much easier to draw investors’ interest in the business.
2. Spending too much too fast
When the business started to pick up, I began to celebrate. As such, I began spending too much, too quickly. I rented a fancy office, brought in designer furniture, and wouldn’t spare a dime at opulent restaurants just to impress clients. I also spent lots of cash, hiring top talent and consultants.
Later on, I discovered that if I outsourced to a firm offering SME accounting services, I could do so without spending a ton of funds. For instance, I would be able to have a CFO, bookkeeper, and a tax accountant at a fraction of the hiring cost. Not to mention, they helped me to put a cap on how much I could spend, even if it was to impress a potential client, allowing me to save more.
3. Not budgeting for my salary
You are not alone in this aspect. Fortunately, my trusted outsourced firm convinced me to budget my salary properly. While it wasn’t an extravagant figure, I was able to enjoy the tax benefits and was relieved to separate the business aspects from my other matters.
4. Ignoring tax breaks and other government incentives
Sometimes financial help is essential when establishing a new business. In my case, I didn’t take advantage of the numerous tax breaks and start-up programs that were available in Singapore. I didn’t know about most of these incentives, and the few that I knew, I couldn’t figure out how they worked.
When I finally contracted a firm offering professional account services, they were able to ensure that these benefits could help my business in a significant way. This is where professionals such as Ackenting Group can help you make the right financial choice, evaluate all of your options, and ensure that you are able to receive the financial benefits to continue growing your business. They understand that financial aspects are essential in managing your business. As such, they can help you seek and apply for the benefits you need to keep growing and expanding your business and ensure that you can remain financially viable.
5. I tried to do it all by myself
When you do it all by yourself, you are bound to make similar financial mistakes as I did. It isn’t easy managing a successful company while keeping one eye on your financials. This is where outsourcing to the best audit firm will ensure that these financial mistakes never happen again. If you are already to quit making these mistakes above, then you should seek an accounting services firm and hire them for your business.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
