Make Connections

Network, Get Answers, Find Members in Your Area, and More!

Forums » Accounting & Financial Management

Do entrepreneurs struggle with finance and accounting?

    • 36 posts
    April 9, 2009 11:05 AM EDT
    Agreed, with accounting & finance for sure, typically other areas as well.  I`ve found startups usually are great at one thing (web dev, sales, marketing) and suck at everything else.  As said above, thus the need for virtual CFO, although also the reason for a well rounded management team.  Also investors typically won`t entertain companies unless they do have a well rounded mgmt team with experience. 

    Entrepreneurs aside, MOST people struggle with accounting, try explaining accounting in the corporate world. 

    ---
    Rogue CFO
    Virtual CFO helping launch startups.
    RogueCFO.com
    Rogue CFO On Twitter

    • 118 posts
    March 26, 2009 2:12 PM EDT
    I think to some degree it depends on the individual and their prior finance and successful entrepreneurial background.

    On the other hand, finance and accounting when starting up can be very difficult to plan, and can also be difficult during early, post-start up years.

    So yes, as craig said, to a large degree. But those with enough experience in the area probably have a decent handle on finance and accounting.

    ---
    Motivation for Entrepreneurs
    Entre-Propel.com

    • 118 posts
    March 27, 2009 5:58 AM EDT
    Also, with regard to Matt`s comments I don`t think it`s a bad idea to get a little help with budgeting, forecasting planning etc. Business owner`s time is better spent running their business but they do still need a good working knowledge of the numbers so that they have confidence in them.



    Completely agree. Creating and developing are two big tasks business owners should concentrate on. And while a business owner doesn`t need to be a master accountant, they should absolutely have a good understanding of finance and accounting in order to make more informed decisions.

    ---
    Motivation for Entrepreneurs
    Entre-Propel.com

    • 37 posts
    August 17, 2012 11:06 PM EDT

    Well, they won't if they start using softwares for handling finance and accounting. Yes, its true that with the help of accounting software one can easily speed up things which would be great for the growth of the business.

    ---
    Moving Software

    • 1 posts
    March 25, 2009 6:12 PM EDT
    To what degree do entrepreneurs struggle with understanding and managing financial and accounting related issues?
    • 2 posts
    January 25, 2013 9:36 AM EST

     

    I have found that understanding the finances can be a major roadblock for entrepreneurs (new and existing!).  As a bookkeeper, I focus on not only the data entry and day-to-day accounting (A/R, A/P, invoicing, etc.) but I also try to make sure that my clients understand their accounting reports and what they mean to help them better manage the financial health of their company.  Not paying enough attention to the bottom line is a sure route to failure.


    -------------------------

    Lily E. Chambers CPS, CQU
    "Why hire a mere mortal when you have access to a Goddess"
    www.virtualofficegoddess.com

     That's great that you have that passion for your clients to understand the numbers. It's tough in a startup business to understand the importance of accounting. Keep it up OfficeGoddess!

    I Never Understood the Importance of Accounting