The global pandemic has spurred the growth of startups globally. In Singapore, almost 103,600 new businesses were formed between 2020-2021, outnumbering the 73,000 companies that folded. Even with government grants, around 30% of new businesses are projected go bust within the first three years. According to Joseph Khong, assistant director and head of engagement and communications at Action Community for Entrepreneurship (ACE), the three common issues for startup failure comes either from lack of funding, talent or market access.
Say you have a lot of investor funding to burn through, setting up proper accounting practices is still crucial in improving your startup’s chance of success. Why? Because it helps you to make business decisions that are more in line with your business’s financial health. Read on to learn more about the basics of financial accounting and how they can help you.
- Topic:
- Finance
Accounting software is indispensable for the efficient running of businesses. In a nutshell, it helps businesses track their accounts receivables and payables in order to manage cash flow and plan taxes.
There are many accounting software available in the market at different price points with various pros and cons. So how do you pick a great accounting software that becomes your business ally today and in the long haul?
- Topic:
- Finance
With limited budgets, cash flow issues are usually one of the more pressing challenges small and medium-sized businesses (SMBs) face. A healthy cash flow means that businesses can pay their employees and suppliers on time, while meeting overhead costs.
For many businesses, ensuring that there’s more money coming in (accounts receivable) versus money going out (accounts payable) is a tricky balancing act. Cash flow problems have been further exacerbated by the ongoing COVID-19 pandemic, with nearly two-thirds of businesses seeing their revenue plunge by 31% on average in Singapore.
- Topic:
- Finance
