Merging the old and the new is never an easy task. New ideals are sometimes too rash that the slow-paced ones are not able to immediately cope. But becoming successful in this endeavor can entail a wonderful present; look at how Japan and China managed to bring about old traditions into the modern era – a perfect blend that truly exhibits individuality.
The same thing can be said of a company’s status in comparison to its years of existence. They have terms such as start-ups (for new ones), closing shop and succession planning (for old ones); all dependent on the variable of time.
These are definite and essential parts of any company’s timeline (beginning and transforming phases), as it can determine whether or not they can survive in the changing trends and fierce competition. Majority of industry sectors rely on financial partners to help them ease the burden of managing such a tumultuous task at these crucial moments. An accounting firm with certified public accountants can surely give any company – still forming or is already entering new management – a clear advantage when it comes to efficient management of financial situations, unlike any other.
Below are two scenarios that are important aspects of a business timeline and how accounting firms can specifically help them:
Reality bites: starting a business in a big and vastly diverse city such as Davao can become overwhelming for any entrepreneur. If it has been a childhood dream or a hobby, all the more challenging to attain. Aside from thinking about possible places to put it up, you also have to consider the what, when and how in the equation.
Fact: A Davao accounting firm can help you, first and foremost, in planning the initial steps toward any business formation – the registration.
In the Philippines, that is of course done by registering your chosen business name first through appropriate local authorities, such as:
All these basing on the type of ownership: single, partnership and cooperative, respectively.
After that, you can go down the ladder and visit your Local Government Units (City Hall, Provincial Hall), the Homeowner’s association leaders, Barangay Hall and of course the BIR (Bureau of Internal Revenue) for taxation purposes. With any firm’s help, you can swiftly go through this process without much hassle.
Aside from that, they can also do the following for your convenience:
Forecast – In here, they can offer you the expert insight on things to come. This may mean that they can already sketch either a blurry or clear future for your company basing only on the facts that they can gather that is essential for any start-ups such as permits, your vision and goal plus the market value of your company among many others.
Determine capital needs – They can evaluate and quantify your borrowing power (usually done through your credit standing) so the money lent to you can be used as added capital AND create a business structure that will generally fit a company you have in mind with the actual money you have in hand.
Do budgeting – They can help you account for costs of repair for old properties, acquisition of goods (furniture, computing devices, and retail materials), building a new structure, advertising stints and hiring employees (if ever needed right away).
Execute much planning – Involved here is the budgetary cash flow planning and taxation. They can help you fix a needed budget to keep your startup alive for months to come and prepare you for tax seasons, compliance and savings come time for filing of returns.
Reality Bites: If there are newcomers in any industries, there will always be respected ones, or those companies that have already carved their insignia into the very heart of their niche. If your company satisfies this idea, it’s either: (a) your company is too old (20 years or more) OR (b) you are a proprietor who is already too old so you can’t anymore keep up while you age that you now have to pass the throne to someone else younger.
Fact: This is the problem of time-tested corporations – the numerous changes it has to withstand in order to survive. But since they’re durable enough, they manage to weather these detriments to their advantage thus the longevity. A reliable financial partner in the form of an accounting firm in Davao city can materialize the needed help in this dire situation.
The first key step to identifying this is by answering too many boggling questions that runs in the mind of any candidate for retirement in the top helm, like:
Your accounting firm of choice can sift through the issue as an outside party who can be fair and balanced in their view. While on that topic, they can look at six issues:
The understanding of these major concerns is fundamental in clearing any disputes or ethical issues that may arise upon transition. Moreover, aside from understanding, there must be an action phase and these are what they can offer you:
On a final note, the main goal for any start-ups and successions to become ultimately successful is long-term planning and integration. For a clearer delineation of very crucial tasks that need expert touch and opinion, hire accounting firms and prevent the problems before it happen; regardless of whether your company is new or old.