Start-ups are becoming a buzz word and rightly so. Our honorable Prime Minister also made mention of Start-up India in his speech on Aug 15, 2015. Every month about 8000 company incorporations happen and almost ten times ideas emerge, are discussed, and debated. Upon incorporating a company entrepreneurs focus on building business, hiring employees, meeting customers, deciding marketing plans, putting together portal/product development plans, and so on but in the process, founders always forget the need to have proper accounting, tax, legal, and secretarial compliances in place.
This generally happens due to ignorance and the choice of appointing the wrong consultant who just listens to customer requirements and does not perform the job of a true professional by advising founders on what needs to be done. This also happens due to competencies.
Entrepreneurship
So entrepreneurs continue to focus on day to day the fire of handling crises, running for growth, employees, customers, and digital media presence, and when the time comes to knock on investor doors, it’s a real nightmare to put together everything for the last few months or quarters. So here comes a real test for entrepreneurs to start learning accounting, tax, and legal compliances and breaking their heads to put everything together.
Calling professionals who incorporated your company may not help as they just looked at you one-time customer. Most of the time they are not even competent to provide you all the services considering the complexities of business. Somehow if founders manage to put together the fundraising pitch deck with all financial and compliance details (of course a quick job) but when it comes to getting a signed terms sheet in hand and due diligence consultants from Venture Capital Firms knock on doors, Founders really have nothing except few bills, invoices in mailboxes, bank statements and some petty cash excel sheet.
Now due diligence team goes back and a mail hits the founders’ inbox with a detailed due diligence checklist to be ready in seven days. Now imagine founders are anyway stuck with every day`s fire and for sure they need funding to grow, build a business, and build technology in the middle of all this if you are asked to prepare accounting books, and complete secretarial compliances in seven days, it’s worst time because he does not know where to go, what to do and above all from where to start.
Maybe he was required to get registered for Professional Tax but has not done so, he has made payments to vendors not deducted TDS, or has not even been registered for TDS (obtaining TIN number), and so on.
It’s all good to focus on business, executing strategy, and hiring the right people but at the same time, it’s quite essential that founders ensure that they appoint competent consultants capable of providing all services under one roof and they are aware of today`s world business complexities.
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Volody is the option you must consider if you have just started up or started a couple of months/quarterback and now aiming for fundraising. In our journey, we have experienced many cases where we had founders really get stressed that they would not be able to raise funds as books and compliances were in order. However, we managed to get everything in order and cleared the mess created by earlier professionals. We plan to cover this in upcoming case studies.
Please visit https://www.volody.com/ to avail the services.
