Gaining investors is part and parcel of starting a business. But even with a strong idea and decent sales projections, securing financial funding is often a long and arduous task. One way you can make it easier? Get your bookkeeping in order before you start your search.
At Angel Bookkeeping and Payroll Services, we provide bookkeeping in Henfield to both start-ups and scaling SMEs. We’ve worked with numerous brands seeking investment and have helped them secure funding through the power of organised, balanced books. Now, we’ve put together this guide exploring why proper bookkeeping is essential for attracting investors.
Provide Proof of Your Projections
It’s easy to say ‘We’re expected to turn an annual profit of £1 million by 2040’, but where’s the proof? Investors need to see evidence of any figures you put forward, and organised bookkeeping makes sharing your numbers a whole lot easier. With your cash flow clearly laid out, you can hand over exact figures on expenses, past sales, and projections, all of which are backed up by our professional seal of approval.
Show That You’re Serious
Investors are approached by start-up owners and entrepreneurs constantly. How do they know you’re the business they want to back?
By being able to present your finances and bookkeeping when asked, you show that this is more than just a vague concept or pipe dream, but a serious business venture. You’re already putting in the legwork to create solid foundations for your start-up, and that goes a long way in terms of first impressions.
Clarity on Cash Flow Helps Gain Trust
Investors want to know a couple of things quickly: how much additional cash you have and how you want to use it. If you can answer these questions in a few minutes, with current figures and facts, you’ll build trust.
Bookkeeping goes a long way to helping you portray confidence around your finances. With our bookkeeping in Henfield, for instance, we use cloud software so that your records are connected to your bank accounts and constantly updated in real time. When an investor asks, you don’t have to guess or stutter; you have all the information they need, and you’re ready to provide it.
Set the Basis for Good Payroll
When you hire your first employee, payroll becomes an integral part of your business operations. Poor payroll leads to unhappy employees, HMRC issues, and potential legal complications, none of which are green flags for investors.
When you invest in bookkeeping, you can also explore our start-up company payroll services. While you might not need them right now, it gives you a plan when investors ask, and highlights that you’re not just thinking about current business needs, but future ones, too. For investors who are considering handing over their money, that’s exactly what they want to hear.
Stay HMRC Compliant
Staying compliant with tax laws isn’t a choice, and investors will always do their due diligence before funding a start-up. If they find something missing or your tax records don’t add up, you’re not likely to secure their investment. Professional bookkeeping in Henfield takes the stress out of HMRC compliance by ensuring that everything’s done by the books, submitted on time, and reported correctly.
Invest in Bookkeeping in Henfield
If you’re preparing your investor pitches, make sure you’re giving your start-up the best chance with our trusted bookkeeping in Henfield. Learn more about our services by speaking with our team today.