Startups are born from passion, innovation, and bold ideas. But many founders overlook one crucial aspect: financial management. Here’s a look at the top mistakes startups make without the guidance of a CA.
1. Ignoring Proper Bookkeeping
Manual spreadsheets or missed entries often lead to financial confusion. A CA ensures every rupee is accounted for from day one.
2. Overlooking Tax Deadlines
Missing tax filings can attract penalties. A CA not only reminds you of deadlines but also prepares accurate returns.
3. Wrong Business Structure
Choosing between sole proprietorship, partnership, LLP, or Pvt Ltd affects taxation and liability. A CA recommends the right structure for your goals.
4. Mismanaging Cash Flow
Most startups shut down due to cash flow issues—not lack of profit. A CA helps forecast and manage your burn rate effectively.
5. No Financial Reports or Budgeting
Without budgeting or financial forecasting, startups fly blind. CAs deliver monthly, quarterly, and yearly reports to guide better decision-making.