At Integra Books we have helped multiple clients raise capital from Angels and VC’s. Fund raising is an exhaustive process involving due diligence , pre & post funding compliance’s. Investors look at not only at the business prospects but also at the financial systems in the company. Consequently, having a few key things tied up and organized can make all the difference. We have already given you a primer on making your accounting effective. Here is a quick guide on setting up financial systems.
Set up Books of Accounts
An ideal accounting system reduces the time spent by the founders on record keeping, provides the investors and founders with profit & loss statements, cash flow and balance sheets. A software like Zoho Books integrates with whole range of applications like Zoho Payroll, Zoho People,Zoho Expense in the background so you can concentrate on running your business.
Track your Expenses
A business must track every rupee spent. A clean Profit & Loss statement makes the audit a smooth affair. Moreover, there are tax rules which have to be complied with regards to expenses. Hence, a keeping a keen eye on expenses is critical. A tool like Zoho Expense can completely digitize the process of expense management. Say goodbye to shoe boxes of receipts, further Zoho Expenses syncs with Zoho Books enabling automation.
Set up a Payroll System
Employees are the most critical component of your business. A properly structured payroll can be a win-win for the employees and the employer. A payroll system must ensure compliance with tax & labor law, ensure payment on time to employees. Here is where Zoho Payroll can automate the payroll process, create diverse pay structures and enable payment on time. Integration of Payroll with Books reduces a lot of manual work.
Stay Compliant with Laws
India is has many compliance’s to be met by businesses. Recently, India has moved up on Ease of Business rankings but a lot more remains to be done. Non compliance can have grave consequences both founders and investors. Every business needs help to stay on top of compliance’s. At Integra Books, we have developed a Compliance Calendar which intimates our clients on compliance due dates.
Set up a Reporting System
Now that you have an accounting software integrated with other tools, its time to set up a reporting system. Investors mandate that financial reports be provided regularly. This report goes beyond P&L and Balance Sheets and must provide key metrics of your business. As founders,automating these reports will reduce both time and effort. We recommend Zoho Analytics.
Prepare for Due Diligence
Due diligence is a precursor to funding. It is a test a business must pass before money can roll into the company. We have provided a due diligence check list here , the next venture round or sudden acquisition suitor always happens at the least convenient time, so make sure you’re prepared ahead of time!
Financial systems are required to take the business to the next level. Every business must leverage technology and automation to avoid chaos. As companies grow the burden of managing numbers and compliance’s always tend to fall on few shoulders. Moreover, logistical challenges around these can overpower any business. Early adoption of financial technology can reduces these challenges freeing up founders to run the business.
At Integra Books we have helped many business’s transform their finance functions. Get in touch to transform your business.