Accounting for fast-growing but young companies is very challenging. Why? It is precisely because of their rapid growth, where the entrepreneur grows so much that they can no longer keep track of all aspects of their business.
For smaller companies, accounting is mostly what entrepreneurs outsource, as it is more cost-effective. At the same time, accounting services manage their work in terms of ensuring that transactions are properly recorded and that they comply with legal requirements. We are talking about so-called financial accounting.
But experience shows that fast-growing businesses and entrepreneurs face several dilemmas that could be solved with an accountant, but they don’t receive the correct information. In fact, we are talking about a minor version of controlling and no longer about accounting “control”, the correctness of business execution. We are talking about management accounting. It is a system for independent and real-time monitoring and analysis of performance.
Controlling shows entrepreneurs the state of their business in a simple and transparent manner and performs the four basic functions of planning, controlling, informing and guiding.
A good accountant, even an external one, can help an entrepreneur make decisions, and they often get neglected in the process. A fast-growing entrepreneur needs exactly that, and given the IT available, a good accountant can make it happen quickly.
