Common Slippage In Early Days Of Entrepreneurship

Common Slippage In Early Days Of Entrepreneurship


Start-up is becoming a buzz word and rightly so. Our honourable Prime Minister also made a mention Start-up India in his speech on Aug 15, 2015. Every month about 8000 company incorporation happens and almost ten times ideas being emerged, discussed and debated. Upon incorporating company entrepreneurs focus on building business, hiring employees, meeting customers, deciding marketing plans, putting together portal/product development plan 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 choice of appointing wrong consultant who just listen to customer requirement and do not perform job of true professional by advising founders what all need to be done. This also happens due to competencies.



So entrepreneurs continue focus on day to day fire of handling crisis, running for growth, employees, customers, digital media presence and when the time comes to knock investor doors, its a real nightmare to put together everything in order for last few months or quarter. So here comes to a real test of entrepreneurs to start learning accounting, tax and legal compliances and breaking his head 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 times they are not even competent to be provide you all the services considering the complexities of business. Somehow if founders manage to put together the fund raising pitch deck with all financial and compliance details (of course a quick job) but when it comes to getting signed terms sheet in hand and due diligence consultants from Venture Capital Firms knock doors, Founders really have nothing except few bills, invoices in mail boxes, bank statements and some petty cash excel sheet.

Now due diligence team goes back and a mail hit founders inbox with detail due diligence check list to be ready in seven days. Now imagine founders are anyway stuck with everyday`s fire and for sure they need funding to grow, build business, build technology and in middle of all this if you are asked to prepare accounting books, complete secretarial compliances in seven days, its worst time because he does not know where to go, what to do and above all from where to start.

May be he was required to get registered for Professional Tax but not done, he has made payment to vendors not deducted TDS or not even got registered for TDS (obtaining TIN number) and so on.

Its all good to focus on business, executing strategy, hiring 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.

You May also be interested in Reading: Features of ROC Software is the option you must consider if you have just started up or started couple of months / quarter back and now aiming for fund raising. In our journey we have experienced many cases where we had founders really got stressed that they will not be able to raise fund as books and compliances were in order. Though we managed to get everything in order and cleared the mess created by earlier professionals. We plan to cover in upcoming case studies.

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