Do you understand your Company’s financial metrics intimately enough, to know which levers to pull and which to hold for steady growth? Here are the Three Reasons Your Tech Company Needs an Accountant.
A seasoned accountant cannot only prepare financial statements and reports, but also can and should help you setup and understand those key performance indicators (KPIs) that impact the Company’s value (during the fundraising, exit, or even just month to month), customer retention, growth, and finally cash flow, which leads to reason #2.
2. Cash Flow Management
Accountants are great with numbers and love looking at positive and growing bank balances. How does this help you? Well, cash flow is the life blood of any Company, and if not managed well, can be the reason your Company ends up closing its doors! An experienced accountant can plan out your cash flow position one month, three months, and even a year down the road, offering strategies to maximize your cash on hand (such as making sure your vendor payment terms are longer than the terms you provide to your customers), and ensuring you’re investing in the right things.
3. Pricing Your Product / Service
Pricing is one of the most important aspects of the business, because it’s quite literally at the center of everything that you do. Everything you work on, from your sales and marketing to your support and product, works to drive prospects to your pricing page or to justify the numbers you’re putting on that page. Yet, even though pricing is absolutely crucial to your success, the tech industry as a whole is absolutely awful at taking pricing seriously. In fact, the average amount of time companies spend on their pricing is only 8 hours! A tech experienced accountant can guide you the process of pricing your existing product / service, showing you the financial implications of price increases, decreases, promotions, etc.
We at District Advisory help grow strong, healthy tech companies by providing financial leadership and discipline…making sure every penny spent is focused on maximizing your Company’s valuation.
Still unsure if you need an accountant for your company? Contact us today to learn more.