Importance of Financial Reports for Start-up Companies

Startups ( start-up ) should consider the quality of the financial statements held to be ogled investors. However, as a start-up company , it must have recording financial statements that show how the initial bookkeeping conditions were. They can confirm that the records are correct. Do they have a system for recording financial transactions? Are they able to make a good report? All of these considerations are important for any start-up company to complete . A good financial report is the initial basic capital for start-up business actors.

An investor is certainly reluctant to invest their money in companies that do not have good skills in preparing financial reports. One of the important criteria for a start-up company is to have good financial reporting records. When a company start-upalready having good books, prospective investors will get an idea of ​​how the company performed in the early days of their start-up. Financial reports are important as a basis for calculating future prospects and projections. So that when an investor agrees to invest and in the future there is a need to increase the capacity of human resources (HR) or facilities such as buildings, this financial report projection can be used as a reference for making decisions that must be made.

Another important thing to note is the non-financial side that can be measured and linked to money in the future. Future market potential must be an instrument in calculating the value of a company that becomes a reference for investors. Examples are Gojek, Tokopedia, or Traveloka. The market coverage that we can estimate is the total transactions, the number of customers, how many customers entered, how many orders occurred and the average transaction value per day. All of these are important things outside of financial statements.

In the era of the Industrial Revolution 4.0 is the number of users / user becomes the most important benchmark. Because to calculate the value of a digital start-up business, it can be calculated from the number of users or users . For example, if one user is valued at seven dollars, assuming the number of Gojek users is 2 million people, then the business value is worth 14 million dollars. The only problem remains, whether the number of users can enter the financial report? This is still a matter of debate.

In the era of the Industrial Revolution 4.0, it requires us to innovate and adapt to survive. In a relatively short time, the Gojek and Grab applications were able to beat the economic value of Bluebird or conventional taxi fleet service providers that had been established many years before. In fact, they don’t have a single vehicle as their fleet.

If these two things have been fulfilled, then it is only a matter of waiting for investors to come and invest. It is important to work with consultants and public accountants to do bookkeeping properly and map future needs. In the Industrial Revolution Era 4.0, accountants were no longer just note takers but also appraisers.

Thus, an increase or change in the current business and economic model can cause the principles and work models of an accountant to change.

 

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