Working Partner: Futurebooks
Futurebooks is a corporate secretarial and accounting firm for growth startups and modern small businesses. They are committed to providing practical business solutions as accounting and corporate secretarial advisers, protecting client confidentiality, and maintaining high levels of customer service.
We find out more about startup financial fundamentals from CEO Namita Sethi, who has over 13 years of experience in finance and accounting in both Australia and Singapore.
What is the biggest problem that startups come to Futurebooks with and how do you usually tackle it?
Most entrepreneurs and startups are good at what they do: they know their product and offerings, and they have the vision to grow and expand. However, most of them do not know the financial metrics of their businesses and probably lack understanding of the regulatory requirements. It is important for startups to understand that keeping their accounts in place from day one is crucial as this will help them create an accurate perspective of their business. This is specifically true for firms that require capital-intensive investments and are looking to expand through funding. In addition, knowing the local regulations and its requirements are also key to smooth growth and an even transition for an expanding company.
Could you share some actionable tips with our community on approaching the financials of a business, for
1. A business that has just started
It is important for founders to establish the necessary agreements before incorporating the company. Agreements such as Founders Agreement, Shareholders Agreement, among others, are necessary to protect the founders and the company’s interests.
2. A business which works in small teams
We have seen a trend of sophisticated tools which small and medium sized businesses can use in order to plan and measure its company’s financials. Cloud-accounting software Xero works well for SMEs as they help ease up the manual processes in bookkeeping and accounting, saving them time and money. Xero also works well with various cloud integrators, the Add Ons, such as Spotlight Reporting which does an excellent job in forecasting the company’s financial performance.
3. A business which is scaling
To reiterate my point earlier, it is important for growing companies to know the financial metrics of their business especially when they are constantly meeting investors and looking to expand in the region. Financial metrics act as a scorecard for your business as it tells you how much runway you have before all your cash is burned.
How would you advise businesses to leverage upon Singapore’s financial and legal infrastructure?
Singapore’s strong financial and legal infrastructure are highly regulated and act as great advantage to companies starting in Singapore. Most of the information required by growing companies are available online, making it easier and transparent for entrepreneurs to conduct business in the country. In addition, Singapore has a good network of over 76 double-taxation agreements (DTAs) making an ideal location for firms to establish its regional holding position the city-state. Overall, the main attraction in doing trade in Singapore for growing startups is in the taxation, startup benefits, a diverse range of investors and an A-Z checklist of regulations with no hidden agenda.
TWC members receive 5% off their initial invoice with Futurebooks on their accounting and corporate secretarial services.