As an entrepreneur launching a startup, you have a lot on your plate. Building your product, hiring a great team, securing funding, and acquiring customers are just a few of the many tasks demanding your time and attention. Unfortunately, accounting and bookkeeping often get pushed to the bottom of the priority list amid all the chaos. However, establishing a solid accounting foundation early on is essential for any startup.
At Portali, our AI-powered accounting platform is designed with startups in mind. We understand the challenges you face and have solutions to help you overcome them. Here are the top three accounting hurdles startups encounter and how Portali can help you clear them.
Challenge 1: Limited Resources
As a startup, you're operating with limited resources by definition. Startups typically have limited funding and need to be very careful with how they allocate their resources. You may not have the budget to hire a full-time accountant, and your time is already stretched thin. Hiring a full-time accountant is usually not feasible when you're just getting started.
Using an automated accounting platform like Portali allows startups to handle essential accounting needs without the high costs. The software can generate financial statements, track expenses, categorize transactions, and more. This saves the startup time and money, while still providing the financial insights they need to make important business decisions as they scale.
Challenge 2: Complex Regulations
Startups often struggle to keep up with the various regulations around accounting and taxes. There are many accounting regulations startups need to comply with, and the rules are complex. Local, state, and federal agencies all have their own standards, and staying up-to-date with the latest requirements can be difficult when you're focused on building a business.
Make it a habit to regularly follow industry news, government websites, and regulatory bodies. Subscribe to newsletters, blogs, and podcasts that focus on regulatory updates. This will help you stay informed about any new rules or changes that may impact your business. Additionally, attending workshops and webinars hosted by regulatory agencies or industry experts will provide you with in-depth insights, practical guidance, and real-world case studies to help you navigate the regulatory landscape effectively.
Expert advice from professionals such as CPAs or lawyers specializing in your industry can prove invaluable. However, this might cost you more than you can afford. So what you can do is embrace technology to simplify the compliance process. Automated platforms, like Portali's AI-powered solution, can streamline regulatory compliance by monitoring changes, updating relevant processes, and generating necessary reports. This saves you time, reduces errors, and ensures you never miss a beat.
Challenge 3: Unpredictable Cash Flow
Startups often deal with unpredictable cash flow, especially in the early stages. Money is coming in and going out at different times, and it can be difficult to get an accurate view of your financial position and foresee potential cash shortages.
One way to mitigate the impact of unpredictable cash flow is by setting aside some funds that will help you cover unexpected expenses or bridge gaps during lean periods. Aim to save a percentage of your revenue each month and gradually build up your cash reserves. In addition, diversify your revenue streams by targeting different customer segments, expanding into new markets, or offering complementary products or services. By diversifying, you can spread out your risk and potentially generate a more stable cash flow.
Another way is monitoring your cash flow closely by regularly tracking your income and expenses. By keeping a close eye on your finances, you can identify patterns, forecast future cash flow, and make informed decisions. Using an accounting platform will help you streamline this process and gain real-time insights into your financial health.
For startups, accounting doesn’t have to be a burden or an afterthought. With Portali’s innovative yet user-friendly platform, you’ll have the financial visibility and control you need to drive your business forward. Our AI-powered solutions are designed to simplify accounting so you can focus on what really matters—growing your startup. Let Portali handle the numbers while you handle the vision. Your success is our success!