Tuesday, 19 August 2014

Dear Entrepreneurs, here's why you need to keep financial records.

Dear Entrepreneurs,
If you're thinking of raising funding (Debt, Grant or Equity Financing) for your business in future, it's wise to start keeping records the moment you start making revenue.
Simple accounting records and statements/evidence will really come in handy when interested investors/ partners do their due diligence on your business operations.
Why am I saying this? Lotsa entrepreneurs out here have viable businesses and need funds to expand but they do not have records. Why? The sole proprietor/ director/s run the entity from their wallets in cash. Nothing to show who paid for what and where the money went because over 75% of the money moves around in cash.
Have some structures, systems and guidelines - corporate governance manenos. This will save you headaches in future, get you better valuation and thus more favourable deal/s.
Ni hayo tu.

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