It’s no exaggeration to say that there has never been a better time to start a business in Ireland. The Irish government is finally recognising the economic and employment value of SMEs. Business support is available in a variety of guises including mentorships, grants and programs designed to transform an idea or business concept into an investable company.
While all Start-ups are different, they all have something in common. They are all operating on a shoestring budget.
In this bootstrapping climate, it may be tempting to forgo hiring a professional accountancy firm. Perhaps the CFO/Content Manager/Software Developer can also double as the company’s chief financial officer?
After all, accountancy can be completed using software, right?
Wrong. Having a stable financial model to base future growth on is vitally important for all start-ups. If a start-up doesn’t have its financials in order from the start, they are extremely vulnerable to sudden changes in the market or the economic landscape.
To put it simply, a start-up needs the services of a professional start-up accountant.
A professional start-up accountant does an awful lot more than just manage a start-up’s financials. A start-up accountant is invaluable in setting up the company as a legal entity.
Don’t think this is important, well consider the case of CouchSurfing.
Couchsurfing and Airbnb
A full three years before Airbnb became a Silicon Valley success story, there was Couchsurfing.
Couchsurfing was originally incorporated as a non-profit. The charitable view by Couchsurfing’s founder was that the platform allowed people on a modest budget to travel to exotic locations all over the world. Admirable for sure, but being incorporated as a non-profit stalled and complicated Couchsurfing’s ability to seek investment. A lack of funding meant Couchsurfing’s platform began to stagnate, until it was eventually overtaken by the modern and sleek Airbnb.
Airbnb made no mistake when incorporating their company. They registered as a for-profit, which allowed them to bring in outside investors and funnel this money into marketing and platform development.
Couchsurfing eventually re-incorporated as a for-profit but by this time Airbnb had too much of a head start. Couchsurfing ended up looking like another Airbnb knock-off, rather than the market innovator it actually was.
The above story illuminates the importance of having a professional accountant oversee not just the start-ups financials but the company’s formation.
An idea or a concept worth billions could be squandered by a simple mistake in this early but crucial phase.
Bond And Co Start-Up Accountants
Bond and Co have years of experience working directly with start-ups. We can provide invaluable financial advice and help the founders establish their business the right way.
Don’t let your start-up turn into a cautionary tale. Contact our offices and schedule an appointment with one of our start-up accountants today. For more information on our accountancy services, visit our Start-Up Accountant page.