1、FOUNDERSGUIDE FORSTART-UPS ANDENTREPRENEURS:ROLE OFACCOUNTANCYAND FINANCEForewordStart-ups in India have seen remarkable growth in recent years,with India emerging as the third-largest business ecosystem for new ventures,globally.Contributing to Indias ambitions of becoming a US$5 trillion economy b

2、y 2025,start-ups are being seen as the spine of a new India.Success in entrepreneurship relies on effective financial management.Maintaining financial discipline is crucial for establishing a robust front-end while being compliant with laws and regulations builds a solid back-end foundation.Accounta

3、ncy and finance professionals,including accountants,financial analysts and tax experts,play a crucial role in helping start-ups address financial issues:from providing the required maturity in financial processes that is essential to raising an Initial Public Offer(IPO),for example,through to ensuri

4、ng compliance with regulatory and taxation requirements.In this guide,ACCA,in consultation with its members and industry practitioners,lays down the dos and donts across the key aspects of financial management for a start-up and for an entrepreneur aiming to create a substantial business.It also out

5、lines various touchpoints with accountancy and finance professionals and the skills they need to contribute effectively as thought partners.Relevant for entrepreneurs,budding entrepreneurs,and accountancy and finance professionals keen to work with entrepreneurs,this guide is ACCAs contribution to s

6、upporting the thriving start-up ecosystem in India.In line with ACCAs public value agenda for supporting our members,future members,and the accountancy and finance community at large,the report offers practical tips to empower them to pursue their entrepreneurial dreams.Md.Sajid KhanDirector IndiaAC

7、CA2ContentsEXECUTIVE SUMMARY 4INTRODUCTION 71.FINANCING THE BUSINESS81.1 Valuation91.2 Cash flow and working capital122.BUSINESS IMPROVEMENT152.1 Performance management163.CORPORATE GOVERNANCE AND CONTROLS183.1 Ethics and corporate governance,internal controls193.2 Managing risks223.3 Regulatory and

8、 taxation24Acknowledgments 283FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCEEXECUTIVE SUMMARY Executive summary With more than 200%growth in the number of start-ups over the last eight years(to 100,000+in 2023 from 450 in 2016),India is now the worlds third-biggest st

9、art-up ecosystem(Ministry of External Affairs 2023).Thanks to support from the government to improve the ease of doing business,over 80 start-ups are being recognised per day(the highest globally)(Mint 2022).Managing finances is at the heart of successful entrepreneurship,and that is where this guid

10、e will come in handy.Designed with input from entrepreneurs and finance practitioners,it answers the six key questions for entrepreneurs planning their start-ups financial journey.1.How to secure a good valuation?ACCA asked valuation experts for the secret to securing good valuation:a viable product

11、 and a strong proof of concept is their answer.As you bootstrap/self-finance your venture in the pre-start-up stage,focus on the idea.A start-ups value comes from having a unique product that people use repeatedly.If the product is fresh and useful and brings long-term benefits,its valuable.For fund

12、raising at the start-up stage,venture funds and angel investors look at the product,the entrepreneurs skills,the target market and the growth potential.Develop the idea and test your proof of concept,as you look to raise funds through instruments such as a merger or acquisition(M&A),an IPO and priva

13、te placement in the growth phase.2.How to manage day-to-day finances(cash flow and working capital)?By managing and allocating resources effectively towards capital and operational expenditures,you can improve financial performance,reduce costs and increase profitability,resulting in sustained growt

14、h.Founders who have been through this journey recommend that you make sure your funder understands your business;plan your needs six to eight months before and explore multiple options of financing;keep your stock reports and other paperwork updated and stay clean financially;extend the period over

15、which you use up your initial capital(ie reduce the burn rate)to generate value;manage receivables for efficient working-capital management;exercise control over turnover and manage inventory effectively.Hire accountancy and finance professionals to help you or develop the acumen internally:having s

16、omeone on your team who understands numbers is crucial,as earning and managing money require different skill sets.43.How to ensure continuous growth?Accurate and up-to-date information helps you make intelligent and informed decisions for building your future success.Define the essentials for your b

17、usiness to survive(the critical success factors)and the key performance indicators(KPIs)for each.Set up a financial and performance management system(PMS)that records your progress against the baseline and recommends actions to be taken.Choose a system that is simple and easy to use,provides timely

18、updates,is relevant to your needs and is scalable.Focus on what the data reveals when making operational and strategic decisions.And if this all sounds too complex,hire an accountancy and finance professional,because identifying and reporting on KPIs is one of their core competencies.4.How do good c

19、orporate governance and internal controls help?The experts tell us they are essential for building a solid foundation.Corporate governance and internal controls can be understood simply as doing the right thing for customers and employees.Having a compliant business with solid internal control mecha

20、nisms provides a competitive edge when seeking funds from investors,helps in building the companys reputation,and prevents fraud and errors.Ensure compliance with relevant laws and regulations because non-compliance will make your business non-viable.As the business grows,invest in strong finance,in

21、ternal audit and control mechanisms while balancing these against the flexibility required for innovation.Seek counsel from experts to get it right the first time.5.How much risk is too much risk?Taking risks is fundamental to entrepreneurship.Risks represent opportunities if you know how to use the

22、m but if they materialise they can also be your worst nightmare,if not handled properly.Prudent risk-taking is the key to success.Take calculated risks and avoid anything that could put a question mark on your business model.As an entrepreneur,you need to embed risk management in the culture of the

23、organisation.Self-examination and delegation are important to enable calculated risk-taking.Have systems and processes in place to monitor risks and reduce their impact,should a risk materialise,through back-up plans.Seek professional help wherever needed the unpredictability of new regulations pres

24、ents risks for which entrepreneurs need to prepare,for example,and accountancy and finance professionals can guide you through the processes.6.How do I manage the regulatory and taxation issues?While the ease of doing business has improved considerably,regulatory and tax compliances can be intricate

25、 and often pose challenges to start-ups.Understanding and complying with regulations is essential for businesses to thrive.Having a minimum knowledge of the applicable regulations and compliance is essential.When considering regulatory issues,choosing a legal structure suitable for your business is

26、the first step.Understand the licensing and permit requirements for your business,and ensure compliance with labour and environmental regulations as well as the Foreign Exchange Management Act(FEMA)guidelines(if you receive foreign investments).Common taxation compliances include income tax,tax dedu

27、cted at source,employee provident fund,employee state insurance and compliance with goods and services tax.Seek expert help:accountancy and finance professionals play a key role in helping start-ups with regulatory and taxation issues.FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANC

28、Y AND FINANCEEXECUTIVE SUMMARY 5FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCEEXECUTIVE SUMMARY Entrepreneurship is like the Olympics of business.Running a successful business is a combination of multiple attributes.Have regulatory awareness and seek the right adviser

29、s and mentors for guidance,as you focus on developing your core business(Jamil Khatri,co-founder and CEO,Uniqus Consultech)6FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCEINTRODUCTIONIntroductionWhat comes to mind when you hear the word start-up?A valuation of a billio

30、n dollars?Or the vision of building something thats going to help solve one of the many challenges that the world faces?Or the wonderful feeling of being your own boss?Irrespective of the objective,the thrill of building a business worth multimillion dollars from scratch is exciting but the thought

31、of figuring out everything,from sales and marketing to managing finances,can be daunting.Managing finances is at the heart of successful entrepreneurship.And that is where this guide will come in handy.Designed with input from entrepreneurs and finance practitioners,it sets out step-by-step planning

32、 for the financial journey of your enterprise.It outlines the processes across the six key financial management stages and highlights the dos and donts,with examples from people who have already been on this journey,whether as founders,accountancy and finance professionals working with founders,or i

33、nvestors and incubators.Whether you are an entrepreneur,planning to become one,or an accountancy and finance professional keen to work with entrepreneurs,this guide is for you.Here are the three areas and six key stages you need to plan/help plan,which we will look at in more detail below.Figure I1:

34、Planning to launch your start-up1.Financing the businessValuationCash flow andworking capital2.Business improvementPerformancemanagement3.Corporate governanceand controlsEthics and governance,and internal controlsManaging risksRegulatory&taxationissues7FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:

35、ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESS1.FINANCINGTHEBUSINESS81.Financing the businessFOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESS1.1 ValuationSo,you have your proof of concept and are ready to get things started.Understanding

36、 how to finance your business sustainably is the first step.The right financing can do more than just provide the cash your venture needs to function.It can also minimise costs and reduce risks(see ACCA 2016).Evaluating a start-up is both a science and an art.Valuation determines the worth of a new

37、firm and how much money anyone with a stake in the company will make on exit.Finding the sweet spot of your companys valuation can make or break a potential supporters decision to invest in your company.What are the key stages in a start-ups journey leading up to the valuation stage and what are the

38、 means of securing a good valuation?These are the key questions you as a budding entrepreneur need to consider.Figure 1.1:Key stages for start-ups and sources of fundingSTART-UP DEVELOPMENT PHASESVision&MissionMinimumViableProduct(MVP)ProductMarket FitGrowthScalePre-start-upStart-upGrowth-2Ideation-

39、1Concepting2Scaling3EstablishingTime0CommitmentSource:Mavilach(2020)1Validation9Bootstrapping/self-financing involves starting the business with little or no venture capital or outside investment.The initial investments(pre-seed and seed funding)generally come from the savings of the founder,or from

40、 family,friends or acquaintances of the founder.Common funding sources for this stage are venture capital(VC)funds that put relatively large amounts of money(ticket sizes)into their investments.VCs can provide funding for late-stage start-ups.Start-ups generally get funds in multiple stages,referred

41、 to as Series A,Series B,Series C,and so on,and successful progression is linked to market performance and growth objectives.Employee stock option plans(ESOPs)are commonly used to attract talent and as a team motivation,as well as a fund-saving tool.Private equity/investment firms are another fundra

42、ising option forfast-growing late-stage start-ups that have maintained a consistent growth record.Other options are 1)incubators,which assist entrepreneurs by offering value-added services(office space,utilities,admin and legal assistance,etc.)and collateral-free debt,by enabling access to low-cost

43、capital provided by the government of India(read ACCAs research entitled Space to grow:new models of business support(ACCA 2020a)to understand the role of accelerators and incubators as support mechanisms);2)angel investors,who invest their money in high-potential start-ups in return for equity,such

44、 as Indian Angel Network and Mumbai Angels and 3)crowdfunding via online platforms,such as Ketto where a number of people come together to contribute relatively small amounts each.The government of India has also launched initiatives and schemes to support entrepreneurs and start-ups.Here are some e

45、xamples.1)The Startup India Seed Fund Scheme provides financial assistance to start-ups for proof of concept,prototype development,product trials,market entry,and commercialisation.2)Atal Innovation Mission supports the establishment of Atal Incubation Centers(AICs)that provide a conducive environme

46、nt for start-ups to grow.These centres often offer funding,mentorship and infrastructure support.Read here to learn about the 100+schemes from various departments and ministries,as well as the state start-up policies(Ministry of Commerce and Industry n.d.).See more details in section 3.3.Pre-start-u

47、pOnce there is fast market growth and increasing revenues,you and your investors have various options.1)In a merger or acquisition,you may decide to merge the company with an existing one or sell your stake in thecompany.The merger/acquisition at this stage would usually be done with/by a larger,mor

48、e established company in thesame industry.2)You might decide to list on the stock market for the first time,via an initial public offering(IPO).Private placement isalso explored as an alternative to an IPO,that is,where a start-up sells securities to a pre-selected group of investors,thus allowing f

49、or fewer regulatory hurdles and media glare.Accountancy and finance professionals are integral to the IPO process,bringing in the required maturity in financial processes,and ensuring compliance with regulations and the extensive financial reporting requirements.Their contributions extend to prospec

50、tus preparation,financial due diligence,and continued post-IPO compliance,fostering investor confidence and facilitating a successful public offering.GrowthStart-upFOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESSAditya Agarwal,cofounder of Campus

51、Sutra,explains,bootstrapping is growing a company without takingany external equity funding.Bootstrapped start-ups use personal funds initially and gradually raise money from banks,based on the businesss fnancial health.10ACCA spoke with Darshana Kadakia,Partner and Valuation Practice Leader,Grant T

52、hornton IndiaACCA:What determines a good valuation?DK:A viable product and a strong proof of concept.The product should have a longer-term viability forinvestors to see value in it.Of 100 ideas,only 1015 are accepted by the market,so do a thorough analysis of your product at the initial stage.Unders

53、tand the growth potential and the USP unique selling point of your product/service as against those of your competitors.Figure out how will you differentiate it and how you will move users from existing service providers to your product/service,or create new users for your product/service.ACCA:What

54、are the things to keep in mind as a start-up moves from early stage to valuation?DK:Focus on the idea.Conceive and develop it as the actual valuation comes into the picture,when a proof ofconcept is developed.Ill share the example of this ed-tech company that started very small with the idea of desi

55、gning content and assistance for schoolteachers using a B2B platform.While the initial value was low,once their concept and content were appreciated(and upgraded following feedback),that became their proof of concept to replicate.After that,the start-up started getting higher valuations.FOUNDERS GUI

56、DE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESSHow do you secure a good valuation?Design a sustainable business model,emphasising the unique value proposition of the product.Demonstrate the value of,and demand for,the product through consistent revenue gene

57、ration.Get a clear understanding of the market and customers and leverage technology to drive efficiency and growth.Darshana emphasises that a good proof of concept is the starting point.A start-ups value comes from having a unique and needed product that people use over time.If the product is fresh

58、 and useful and brings long-term benefts,its valuable.Investors like venture funds or angel investors look at the product,the entrepreneurs skills,the target market and the growth potential before investing,says Darshana.11While having a good product to secure valuation is important,equally importan

59、t is managing the fund and understanding the fnancial implications,comments Darshana.FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESS1.2 Cash flow and working capitalA key part of financial management is managing your day-to-day finances:your cas

60、h flow and working capital.CapEx and OpEx are like the yin and yang of a businesss financial world.Capital expenditure(CapEx or capital expenses)refers to capital spent on assets with long-term benefits,such as,property,plant,or equipment.CapEx consists typically of one-time expenses and has a more

61、substantial impact on the companys finances than OpEx.It enables businesses to buy or upgrade long-term assets crucial for starting or expanding operations and increasing production capacity.Operational expenditure(OpEx or operating expenses)refers to the expenses incurred on day-to-day operations,s

62、uch as salaries,rent,utilities and maintenance costs.OpEx is usually a stream of expenditure incurred to keep the business running.Why and how should an entrepreneur maintain a healthy working capital?Working capital management involves a)maintaining the working capital operating cycle,ie number of

63、daysbetween paying suppliers and receiving cash from sales b)minimising the amount of working capital,and c)maximising the return on current asset investments.Working capital serves as a metric for how efficiently a company is operating and how financially stable it is inthe short term.Capital tied

64、up by slow-moving inventory(referred to as inventory heaviness),or high numberof outstanding sales invoices can cause liquidity challenges and a lot of operational stress.Dynamic discounting(offering discounts for early payment on both the supplier and customer side),effective cash flow forecastingt

65、hat is sensitive to real-time updates,and use of dynamic working capital models and optimisation strategiesare critical for effective cash management.Some of the ratios to track include:current ratio,which measures a companys ability to cover its short-term liabilities with its short-term assets;a r

66、atio above 1 indicates that the company has more assets than liabilities in the short terminventory turnover,which is cost of goods sold divided by average inventory value the higher this is,thebetterdays sales outstanding(DSO),which measures the average number of days it takes for a company to coll

67、ectpayment after a sale.A low DSO indicates fast cash collection.By effectively managing and allocating resources towards capital and operational expenditures,companies cannot only improve their financial performance but also reduce costs and increase profitability.Ultimately,this canlead to sustain

68、ed growth,which is the holy grail for any business.12FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESSChallenges/limitations to be considered in working capital managementLimited access to funding can lead to cash flow problems,making it difficult

69、 to cover operational costs and investin growth opportunities.Operating at a high burn rate,meaning spending more money than the company earns,can deplete cash reservesrapidly,leading to liquidity issues if new funding sources are not secured in time.Delayed payments from clients can disrupt the com

70、panys cash flow,affecting day-to-day operations.Economic uncertainties(such as trade wars or economic downturns)and market fluctuations can affect thefunding climate,making it harder for start-ups to secure funding.Overvalued start-ups might face challenges in meeting investors expectations,which ca

71、n lead to a loss of investorconfidence and funding issues.Changes in regulations/policies can disrupt the business environment.Compliance with new rules might requireadditional investments,reducing the available liquidity.Internal issues,such as mismanagement of funds,overspending on non-essential a

72、ctivities,or inefficient financialplanning can also cause liquidity problems.ACCA spoke with Aditya Agarwal,co-founder of CampusSutraACCA:What are your tips for a steady cash flow and working capital?AA:complexities,so they get it.Financial institutions move slowly.Plan your needs six to eight month

73、s before.Mix quicker for short-term needs.Follow processes.Keep up with stock reports and other paperwork.Stay cleanACCA:How did you manage the financial aspects,such as cash flow and working capital in your business?Did you have someone with a finance background to help you?AA:along with making sur

74、e everything is compliant,are also helping us make and save money by negotiating the best interest rates across geographies,for example.professional to help you or develop the acumen.Vanity matrices,such as number of followers or daily sales,shouldnt be the only criteria.Earning money and managing i

75、t are two different skill sets,therefore,having somebody who understands numbers is very important as it holds you in good stead.ACCA:Any other tips for young entrepreneurs who are just starting?AA:Start with both a 10,000 feet and a 10-feet view of the company.You need to toggle between themmake yo

76、ur own vision,mission and values,based on what you have learned.Take insights from successful entrepreneurs but dont ignore your other learnings.Once your business is established,you can have your teams focus on the 10-feet vision and you can continue to focus on the 10,000-feet view.13FOUNDERS GUID

77、E FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE1.FINANCING THE BUSINESSACCA spoke with Alex Danylenko,Managing Director and Founder of BoodmoACCA:How do you manage your cash flow and working capital requirements?AD:Working capital is very crucial right from the start.From my learni

78、ngs,I will say entrepreneurs should focus on reducing the cash burn rate to generate value,and avoid hurried fundraising.A deeper look into inventory effectively.ACCA:Any other tips for entrepreneurs starting out?AD:For entrepreneurs seeking funding in the current environment,its crucial to demonstr

79、ate success before approaching investors.Conduct numerous transactions to test and scale the idea.Show real sales achievements emphasising sustainability over rapid but unsustainable expansion.Financial discipline plays a vital role in entrepreneurship.Education is valuable,but starting a successful

80、 business requires more than just academic knowledge.Seek advice from professionals,especially when dealing with something new or risky.Embrace a learning mindset and prioritise continuous development.14FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE2.BUSINESS IMPROVEM

81、ENT2.BUSINESSIMPROVEMENT15FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE2.BUSINESS IMPROVEMENT2.BUSINESS IMPROVEMENTBusiness improvements are most successful when backed by good financial management.Accurate and up-to-date information lets you make intelligent and inf

82、ormed decisions for building your future success.Managing performance:what do youneed to do?The recipe for good performance management is rather simple but as with cooking,the success of the result depends on how well you execute the recipe.As mentioned earlier,the first step is to define those area

83、s essential for your business to survive.These are defined as the critical success factors(CSFs).For each of these areas,you need to a have metric(a measurement)that will tell you how well or how badly you are performing.These are your KPIs.Once you define these,you need to set up a financial system

84、 and PMS that records this baseline and your progress against it.If possible,the systems should produce recommended actions to be taken.PMSs can range from spreadsheet dashboards that track results to well-defined enterprise resource planning(ERP)systems,further supported by visualisation tools.Ulti

85、mately,the system you implement should be:simple for you and your usersprovide timely and appropriate reports such as KPIs totrack the periodic performance,generate periodicfinancial performance report card,and these reportsshould be available at the appropriate level of detail torelevant persons on

86、lyrelevant to your needs and scalable if you are asmall-scale organisation,spreadsheets might be betterthan a complex ERP.But as you grow you may need tomove to specialised accounting software and then toan ERP.Lets say you run an online B2C business.To review whether you are doing well,you may want

87、 to:create a dynamic budget to identify your initialfunding requirement,your revenues,costs andprofits,and any new funding requirementsknow the periodic trends of orders,returns,discounts offered,average order value,and so onbe aware of the overall health of the organisation,such as cash flow balanc

88、es,repayment capacities,any frauds detected and their value,revenueleakages,stock lying unsold,etc.The trends and health of the organisation are the CSFs while the specific metrics,such as average order value,are KPIs.Performance management should focus on both the short and long-term goals.Unless y

89、ou have a PMS,you cannot know this key information.2.1 Performance managementWhat is performance to you?Is it profits?Is it IPO value?Is it some social goal?What performance means to you is defined by what you have included in your mission statement,vision and objectives.But how do you know if you h

90、ave achieved that goal?To answer,you need to ensure that you have a system or a process in place to record what you have defined as performance,how you are progressing towards that goal and what actions can be taken to achieve it.Monitoring those areas that are essential for your business to survive

91、 is crucial.Thats what performance management is all about.Good performance management reduces risk as you keep an eye on both the present and future.Example of performance management16Focus on what the data is revealing each data pointcontributes to a narrative about the current status of your busi

92、ness.Use the data to make decisions on your business operations and strategy.Resource management decisions such as whether tomake or buy,to outsource,to use short-term resourcesat higher cost or longer-term resources at lower cost.Employee performance data will show you the areaswhere your employees

93、 need training,who should berewarded,etc.Product,service and market portfolio customerdata analyses can tell you what products and servicesare required by your target market and what should beremoved from your portfolio.A decision about whetherto move to a new geographical market should be takenusin

94、g data.Cash flow and investment using data helps withdecisions on deploying surplus funds into value-addedareas to maximise returns(directly or through branding)and with proactive planning to source funds for anyinterim shortfalls.All these may sound too complex,but accountancy and finance professio

95、nals learn and do these things on a day-to-day basis.Management accountants are performance management experts,and they can help you identify the KPIs and report on them effectively.They can understand your vision,build and manage your stakeholder relationships and critically analyse internal and ex

96、ternal trends,realise insights from your data and provide valuable advice to ensure your decisions are data-driven and not based on gut feeling.Above all,as an entrepreneur,you need to focus on value creation not just in monetary terms,but in what you are giving to your target market.Are you solving

97、 a problem for society?Are you addressing a requirement?Focusing on value can lead to sustainability.Similarly,non-financial aspects such as customer satisfaction also need to be thought about.Building this into your whole organisation,from the mission statement to your PMS,will ensure that you make

98、 a difference in the market in the long run.For effective performance management and to be future-fit,ACCAs research entitled Can integrated thinking be the key to SMEs resilience(Chow 2022),recommends using integrated thinking ie identification and organisation of multiple capitals financial and no

99、n-financial(such as human capital or natural capital)to create long-term value for the business and its key stakeholders.Integrated thinking helps businesses answer three key questions critical to being resilient:why am I here?What do I need to survive and then thrive?Whats next?FOUNDERS GUIDE FOR S

100、TART-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE2.BUSINESS IMPROVEMENTTips and examples for effective performance management,from our intervieweesAditya of CampusSutra uses fnancial and operational benchmarks for performance assessment.We are a very data-driven company and our North Star h

101、as always been numbers that really refect the health of the business:top line,bottom line,category sales,year-on-year y-o-y performance,style wise m-o-m month-on-month and y-o-y performance,categories that are growing and shrinking.The problem statements come from thesenumbers,which help guide the s

102、ofter aspects,such as a need for change in style.Along with internal CAGRcompound annual growth rate,our benchmarks are driven by an understanding of how the industry is growingand where its going.We take category,format online/offine and competition numbers to defne ourbenchmarks.We also keep a che

103、ck on the threats.In our business,for example,dead stock/excess inventory isthe biggest killer in the fashion industry.We use a tech-driven in-house model to track inventory and for the lasteight years we have had zero dead stock,says Aditya.Alex of Boodmo says,setting benchmarks depends on your inv

104、estors goals.Some may focus on quick returns,others on long-term growth.Understand your investors expectations,agree on metrics,and align goals.Mutual understanding with investors is key.17FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTRO

105、LS3.CORPORATEGOVERNANCEAND CONTROLS18FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLS3.CORPORATE GOVERNANCEAND CONTROLSGood corporate governance encourages companies to proactively identify and mitigate risks,but also enables good thin

106、gs to happen to limit reputational and financial damage.Good governance involves:building trust and credibility among the stakeholders as such companies are recognised as having transparent decision-making processes and are considered accountable for their actionsensuring compliance with various law

107、s/regulations,such as the Companies Act,Securities and Exchange Board of India(SEBI)regulations,and taxation laws,to avoid penalties,fines and legal issues;click here for the Ministry of Commerce and Industrys comprehensive list of regulations and policiesprudent risk management,as good governance h

108、elps to identify,assess and mitigate financial,operational and reputational risksfacilitating funding and investment,as investors and lenders prefer companies with strong corporate governance and ethical practicesattracting and retain talent,by creating a positive work environment that fosters trust

109、,fairness and accountability in the eyes of the employees.corporate governance.Focus on doing the right thing for customers and employees.Make sure to be compliant with the rules and regulations of the land.Focus on building a fundamentally strong business and not just valuation(Jamil Khatri).You mu

110、st have heard of so many instances where businesses are forced into bankruptcy or get caught up in scandals because the leaders failed to manage the business properly.These failures affect not only the people within the organisation but also all the external stakeholders who depend on the organisati

111、on.These failures are often due to a combination of lack of good governance and internal controls,lack of ethical principles and improper management of business challenges.See ACCAs Risk Culture:Building Resilience and Seizing Opportunities,which includes ten calls to action to help business leaders

112、 drive healthy cultures that get their organisations where they want to be(Johnson 2023).As an entrepreneur,you have to set what is called the Tone at the Top.You are leading the organisation and hence are responsible for the way the organisation operates,the ethical codes and internal controls,and

113、the risk management systems.This naturally leads to the question of what risks are accepted or not.3.1 Ethics and corporate governance,and internal controlsCorporate failure can occur through:misrepresentation of the financials when,to attractinvestors,revenue is overstated and financiallosses are n

114、ot reporteda toxic work environment created by settingunrealistic sales targets and pushing employeestowards malpractices,resulting in loss of trust inthe employerraising exceptionally large amounts of fundsthrough loans from various banks but inability topay back,leading to legal consequences.Learn

115、ings from corporate governance failures19FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLSACCA spoke with Jamil Khatri,co-founder and CEO,Uniqus ConsultechACCA:What are the common ethical and governance mistakes that entrepreneurs make

116、and how can they avoid these?JK:1.Setting up a non-compliant business;2.not having the right risk management and controls building theback-end foundation is as important as building a strong front end;and 3.focusing on just the valuation,and not giving enough importance to compliance and risk manage

117、ment.To avoid mistakes,seek counsel from experts to learn what works and what doesnt.Dont just ask-listen.ACCA:What tips can you give entrepreneurs on managing internal processes?JK:Entrepreneurship is like the Olympics of business.Running a successful business is a combination of three tofour attri

118、butes:a combination of having the mental strength to navigate challenges and having the fnancial resources inplace;you should be clear where the capital is going to come from for doing what youre doingfocus as much on execution as you should do on the idea nobody else will do it for you;the founding

119、 teammust be able to executenon-compliance with law makes your business a non-viable model,therefore being compliant isnon-negotiablea strong fnance background is key to understanding that a businesss value lies in profts and cash fows,notjust revenue;striking a balance is crucial success,as highlig

120、hted by a seasoned chartered accountant,demands vision and broad thinking,so,assemble a diverse,well-rounded team for a strong foundationas businesses grow,invest in strong fnance,internal audit and control mechanisms,while balancing thefexibility needed to innovate.Many businesses have failed owing

121、 to the lack of the right control andrisk-management mechanisms.Why does your start-up need internalcontrols?Implementing policies and procedures in a start-up ensures that its financial reports are reliable,operations are constantly monitored and are efficient,and activities are compliant with appl

122、icable laws and regulations.Internal controls,therefore,play a crucial role for any start-up as they provide a competitive edge when seeking funds from investors by evidencing a mature organisational environment and providing investors with reasonable assurance of the companys financial performance.

123、Internal controls also help in building the companys reputation and in preventing fraud and errors.Maintain appropriate segregation of duties to reducethe risk of both erroneous and inappropriate actions.Schedule periodic training for employees.Frame clear-cut processes to handle financialtransactio

124、ns such as authorisation and approval limits.Restrict access to sensitive information in line with eachemployees organisational role.Standardise guidelines for maintaining financial recordssuch as bills,invoices,and tax receipts.For further details on objectives,responsibilities and generic categori

125、es of internal controls,refer to the article published by ACCA here(ACCA n.d.).Examples of internal controls toreduced risks and improve efficiencySet up a good organisational structure which providesclarity on the duties and responsibilities across differentjob roles and where accountability lies.2

126、0What is environmental social andgovernance(ESG)and why do youneed to think about it?FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLSDont look at ESG from a namesake perspective,look at it from a sustainability and a proftability as we

127、ll as an opportunity perspective.Energy conservation,for example,is quite important from an operational effciency perspective.Embed ESG in your business and be smart in communicating your actions to your stakeholders.Another lens for GenZ entrepreneurs is to look at ESG as a business opportunity,as

128、they have a better understanding of the psyche of future consumers(Jamil Khatri).ESG is a framework used to assess an organisations business practices and performance against various sustainability and ethical guidelines.It also provides a way of measuring business risks and opportunities in those a

129、reas.It comprises three elements.Environment:this refers to how a company affects theenvironment and deals with risks,which include directand indirect greenhouse gas emissions,how it handlesnatural resources,and its readiness to meet climatechallenges.Social:aspects of a companys relationships withs

130、takeholders,which are both internal(eg fair wages,diversity and inclusion,employee engagement)andexternal(eg impact on the communities in which itoperates).Governance:how an organisation is led and managed,including such aspects as whether leaders are alignedwith stakeholders,how shareholders are tr

131、eated,andthe types of internal controls in place to promotetransparency and accountability.In recent times,businesses have benefited from adopting an ESG approach as it:helps identify,organise,analyse,prioritise and guidedecisions on various business risksfacilitates sustainable revenue growthadds a

132、 competitive advantage in the eyes of investorsand lenders and therefore helps in reducing the cost offundingassists in improving efficiency,resulting in costreductionenables corporate purposes to be achieved and actedon.ACCAs practical playbook How SMEs can create a more sustainable world(ACCA 2021

133、a)outlines the important role that businesses play in the transition to a sustainable and prosperous future by following simple actions.It urges businesses to take practical steps,such as reshaping business models to make them future-ready,acting with urgency on climate change,adopting UN sustainabl

134、e development goals(17 goals tackling major world issues agreed by 193 UN member states to be achieved by 2030)as a part of their strategy and collaborating with others tackling sustainability.The playbook outlines the tangible benefits of embedding sustainable practices and suggest free tools and r

135、esources that can support small entities in their sustainable transformation journey.You can have a deeper dive into mapping UN SDGs to your business goals,supply chain code of conduct and environmental management systems for SMEs accessing our Toolkits series here.21FOUNDERS GUIDE FOR START-UPS AND

136、 ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLS3.2 Managing risksYou have an idea and you believe in the numbers your systems generate;but what can pull your ship down?It is risks.Risk is essentially the possibility that you will fail to achieve your goals.For a sta

137、rt-up,the materialisation of risk may result in your not getting the valuation you aspire to.Generally,risk can be:financial aspects that are directly related to money,such as if your customers fail to pay you,or yourvendors suddenly demand payment,and thus youdont have cash to run operations,or you

138、r IPO does notrealise its value,or it could be something external,suchas recession.non-financial non-monetary risks arise when a newcompetitor enters the market and undercuts you or thegovernment brings in new restrictive rules,or staff areunproductive,or changes occur in the tastes/preferences/pers

139、pectives of your target customers.You cannot fully avoid risks.Nor should you try.As an entrepreneur,your challenge(and your opportunity),is to balance and take on the right risks to ensure the best outcomes for your business while also having a mitigation strategy and strong risk awareness in place

140、.Prudent risk-taking is the key to success.A start-up was founded in 2015 with the aim of automating the pizza-making process;however,after several technological struggles,it changed its business to become a sustainable-packaging manufacturer with projected revenues of$250 million and$1 billion in 2

141、020 Q4 and 2021 Q4,respectively.Despite this pivot and raising hundreds of millions from investors,this start-up shut down in 2023.Why?Well,for a start,the leaders failed to foresee basic problems when cooking using robots in a moving van,such as the melting cheese sliding off the pizza during in-tr

142、ansit cooking.Their packaging also contained some harmful chemicals this resulted in the banning of the packaging in some jurisdictions,a problem that should have been foreseen while creating the original formula and dealt with by appropriate action.The business tried to use Big Data to predict pizz

143、a demand,but this was completely negated by the COVID-19 pandemic.The biggest risk factor was that the business was overly dependent on technology to provide solutions to human problems without factoring in the limitations of the technology.Further,there was no core focus,moving quickly from pizza m

144、aking to automated food delivery to automated packaging all within a few years.Food tech as an industry is yet to have a proper standardised measure of success and hence experimenting in that line has an inherent risk of failure.Growing too fast too quickly with high-profile funding and media attent

145、ion also made the failure more apparent.Even though the COVID-19 risk was not envisaged by the world markets,this start-ups downfall was already set in place by its improper strategy and risk management.Examples of failure due to improper risk managementWe have seen start-ups fail trying to do too m

146、any things too soon and not being able to manage the operations opening too many franchisee stores in a short period in the case of a retail business,for example.Focus is very important.Dont try to do too many things.Hold on to your temptations and focus on your core competencies(Darshana K.).22FOUN

147、DERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLSHow to plan for risks and navigatethem?Risks represent good opportunities if you know how to address them,but they can also be your worst nightmare if you do not handle them effectively;this

148、is why risk management is fundamental to business.But how do you do that?Here are some general tips.Be a prudent risk taker.Risk management is not about being pessimistic,but rather about taking calculated risks.Take a principled approach to risk so that you can make the best use of opportunities.Yo

149、u,as the leader of the firm,set the tone of the organisation towards risk:read here to understand the role of leaders in managing risks and setting the risk appetite of the organisation(Johnson 2023).You also need to start thinking creatively and looking at the future and how long-term scenarios aff

150、ect your business strategy.Take only those risks that you need to take to achieve your goals,directly or indirectly.This report from ACCA on rethinking risk from the perspective of the future(Johnson 2021)can help leaders understand the role of accounting in navigating todays dynamic risk landscape.

151、Embed risk management in the corporate culture.Youcannot handle risks effectively unless you embed risk management into your organisation everyone,from you to the lowest tier of your staff,must understand and actively manage the risks that they encounter.Read more about embedding risk management her

152、e(Lyon 2019).You dont have to be formal about it.In fact,having only a formal code can be ineffective and a flexible approach works better,as identified by a Copenhagen Business School research paper(Juul Andersen and Shaw 2014).Learn to delegate tasks to professionals.Self-examination is important

153、for identifying your skills as an individual.Learn to delegate.If you are good at selling,for example,focus on business development and get professionals for the other work(such as professional accountants to manage credit and liquidity risks).Monitor risks and report on them.Continuousmonitoring of

154、 risks and reporting on them is important.You must have systems and processes in place to spot changes that might damage the business,report them to other chief officer(CXO)-level staff and review them regularly.There are several tools and models that can help with this assessment and review(covered

155、 in Section 2 above under Managing performance).Once you identify risks,understand their potential impact should they materialise and take action to mitigate them.If you cannot address a risk,try to reduce its impact through back-up plans or financing,or push the risk to other parties,such as throug

156、h insurance.In the worst case,avoid the activity linked to the risk,if possible.Hire accountancy and finance professionals as risk managers or as business consultants they know about the general market,the risks affecting your business and other aspects outside your focus area.They can help research

157、 market-leading practices to identify what should be done,and provide appropriate advice.They can also help temper your valuation expectation to make it more realistic.Taking calculated risk:tips and examples from our intervieweesDarshana of Grant Thornton suggests,avoid concentration risk.ie divers

158、ify your customer/vendor base anddont have too much dependency on one customer/vendor.Aditya of CampusSutra says,entrepreneurship is risk,without risk there is no business,but risk needs to berationalised.Maximise the upside and minimise the downside.An example is of managing currency fuctuationswhi

159、le taking a foreign loan(on a lower interest rate than domestic rates,which is an upside),the currencyfuctuations could mean a very high interest payment in practice(downside).To manage this,we used hedgingon import bill and export remittance to cancel the downside,while making use of the low intere

160、st rates.He further recommends,any risk that could take you back to square one and where your entire businessmodel would come into question is non-negotiable.Chase growth,but not at the cost of the business model.Incricket,for example,if youre fve down and if you have to chase 200 runs,then you dont

161、 start hitting fromball one.You settle down,you maintain a good over rate and then in the fnish you go for big hits.Use thesame strategy in business.For Alex of Boodmo,taking risks is inherent in entrepreneurship,and overthinking can be detrimental.Startwith small,calculated steps rather than diving

162、 into signifcant changes.Engage fnancial professionals toconduct regular reviews and assess risks.As your business evolves,adapt your risk policy to address newchallenges.Never underestimate the importance of risk assessment,considering both the size and probability ofpotential risks.Financial profe

163、ssionals play a crucial role in guiding entrepreneurs through this process.Alexfurther adds that the unpredictability of new regulations presents a risk for which entrepreneurs in India need tobe prepared.23FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOV

164、ERNANCE AND CONTROLS3.3 Regulatory and taxation issuesAs an entrepreneur,you need to have minimum knowledge of the applicable regulations and compliances.Initially,you may not be able to afford internal experts but,once your venture is established hire an independent director/expert who can guide yo

165、u on the regulatory aspects.Build an ecosystem of support-including accountants and those who understand compliances(Darshana K.).ACCA spoke with Nachiket Kulkarni and Pranay Doni of NSRCEL,The Indian Institute of Management Bangalores(IIMB)flagship business incubator(the largest incubation centre i

166、n India)ACCA:What are your thoughts on the regulatory ecosystem for entrepreneurs in India and how it has evolved?PD:India is now the worlds third-biggest start-up hub with 90,000 start-ups.There is a big push from thegovernment to improve the ease of doing business.Heres how things have changed.Ind

167、ia has jumped from 142nd to 63rd globally for ease of doing business.The regulatory process is quickerwith electronic approvals and a fast-track system.Starting a business is faster.For incorporating a business,from requiring 1215 forms,businesses now need corporate tax dropped from 40%to 22%andfurt

168、her to 15%for those in manufacturing or the design and export sectors.ACCA:What are the go-to sources for budding entrepreneurs and how should they make best use of the support available?NK and PD:Government sources:Ministry of Corporate Affairs for guides on setting up a start-up and doing the asso

169、ciated flings.See the Startup India Website for lists of documents needed for funding and rules.Tips for making best use of available resources.Know Schemes:Learn about government programmes,such as Mudra Yojana and Startup India Scheme(for mentoring and extra support)(Pradhan Mantri Mudra Yojana n.

170、d.).Reach out to your nearest incubation centres:300+centres across the country(including tier-2 and 3 cities)provide funding and resources.Startup India Hub:Central hub for funding,activities,and more.Infrastructure support:Low-cost co-working spaces are available.Tax benefts:Explore tax breaks for

171、 your business.Connect with incubation centres:If you have an idea but dont know the next steps,its the right time to reach out to an incubator.Incubators such as NSRCEL at IIMB has specifc routes you can use to evaluate whether your idea works.The most ideal intervention stage for long-term incubat

172、ion programmes is when an idea progresses toward a pilot or revenue-generating phase.NSRECL also guides entrepreneurs on entity choices and compliance dos and donts,and educates them on such options as proprietorship,partnership,and non-proft structures,explaining the potential advantages and pitfal

173、ls.ACCA:Do you have any other practical tips for entrepreneurs?NK:Check resources like YourStory for articles on venture inception and legal essentials.Consider applying to smaller-town incubators or newer ones for government-initiated funds,as competition may be less intense than for larger-city in

174、cubators.The key is to approach an incubator early,use programmes tailored for the idea stage,ne your entrepreneurial skills and business concept.Stay informed,explore,and tap into support for a successful business journey!24FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINA

175、NCE3.CORPORATE GOVERNANCE AND CONTROLSWhat are the common regulatorycompliances for start-ups in India?1.Business registration and compliance:start-ups must choose a suitable legal structure and comply with the Companies Act,2013.The process involves obtaining a unique business name,filing necessary

176、 documents,and adhering to registration requirements.For example,companies need to be registered under the Startup India initiative to obtain various benefits.2.Licences and permits:depending on their industry,start-ups may require licences and permits from local,state,and central authorities.These

177、permits range from Goods and Services Tax(GST)registration to specific industry-specific licences.3.Labour laws compliance:adherence to labour laws including minimum wages,working conditions,provident fund,and employee state insurance is crucial for start-ups.This compliance is not only a legal requ

178、irement but also important for building a positive work environment.4.Environmental regulations:depending on their sector,some start-ups must navigate environmental regulations and obtain necessary clearances,particularly in industries such as manufacturing and waste management.5.Foreign Exchange Ma

179、nagement Act(FEMA)compliance:FEMA governs all cross-border monetary transactions.Start-ups dealing with foreign investments or transactions must adhere to FEMA guidelines,including reporting of such investments to the Reserve Bank of India(RBI).Indias taxation structure can be intricate and often po

180、ses challenges to start-ups.Understanding and complying with these tax laws is essential for these businesses to thrive.Common taxation compliances include the following.1.Income Tax:start-ups need to comply with income tax regulations.This includes filing income tax returns,obtaining a Permanent Ac

181、count Number(PAN),and adhering to TDS(Tax Deducted at Source)regulations if applicable.2.Tax Deducted at Source(TDS):if the start-up makes payments that are subject to TDS,it must deduct TDS and deposit it with the income tax department within the specified time.This applies to payments such as sala

182、ries,professional fees,and rent.3.Employee Provident Fund(EPF)and Employee State Insurance(ESI):if a start-up has employees,it must comply with EPF and ESI regulations.These include deducting and depositing contributions to these funds on behalf of employees.4.Goods and Services Tax(GST)compliance:i

183、f the turnover exceeds the threshold limit,the start-up must register on the GST portal and file regular returns.E-commerce companies have faced taxation issues,especially related to(a)the collection and remittance of GST(b)tax-related scrutiny related to foreign direct investment in e-commerce and

184、the application of e-commerce policies,especially regarding inventory and pricing.Example of tax-related complianceIt is very important to start right.Understand the compliance requirements and the pros and cons of different legal structures,and make sure the one chosen aligns with your vision.Seek

185、expert help talk to accountancy and fnance experts.Your comfort factor with the expert is important as you should be able to call them when something that you dont understand happens.While compliance isnt a growth function,it is a core function and a hygiene factor that is very important to maintain

186、(Aditya).How to address regulatory and taxation issues25FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLSAccountancy and finance professionals,including accountants,financial analysts and tax experts,play a crucial role in helping start

187、-ups address regulatory and taxation challenges.For compliance and reporting,finance professionals can assist start-ups by:maintaining accurate financial records and complyingwith regulatory reporting requirementsensuring that the start-up adheres to a legal andcompliance checklist,thereby mitigatin

188、g the risk oflegal issues and penalties.Tax planning is essential for minimising tax liabilities while staying within legal boundaries.Finance professionals help in tax planning by:providing expert advice on tax planning strategieshelping start-ups optimise their tax positions by takingadvantage of

189、tax incentives and exemptions whereapplicable,thereby reducing the overall tax burden.Accountancy and finance professionals play a key role in helping start-ups withregulatory and taxation issues.As an accountancy and finance professional,what arethe skills that you need to make this partnership wor

190、k?Here are some tips,as sharedby interviewees,for professionals working with start-ups.1.Mental agility:the ability to grasp complex concepts quickly and navigate dynamic business environments.2.Brevity in communication:convey financial insights effectively and in a concise manner,recognising the li

191、mitedtime and patience of entrepreneurs.3.Understanding the business model,beyond numbers:go beyond the numbers develop a deepunderstanding of the business and its dynamics beyond compliance and processes.4.Courage to speak up:challenge assumptions and offer insights even in the face of entrepreneur

192、s who maythink they know it all.5.Strategic focus:balance the need for compliance with a strategic focus on the overall goals of the business.6.Adaptability:recognise that working with start-ups demands flexibility and adaptability to changing situations.7.Collaboration:seek counsel and collaborate

193、with others to communicate crucial points effectively toentrepreneurs.8.Risk management:be willing to take calculated risks and navigate the uncertainties inherent in start-upenvironments.9.Stakeholder management:handle all stakeholders well shareholders,clients,partners,employees,and family.10.Embr

194、ace entrepreneurial mindset:shift towards an entrepreneurial mindset,prioritising people andrelationships over financial aspects alone.26FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCE3.CORPORATE GOVERNANCE AND CONTROLSWe recommend that young start-ups in India proacti

195、vely engage accountancy and finance professionals,as either in-house experts or external consultants,to ensure they are well-prepared to address these challenges.A proactive approach to compliance and financial management not only safeguards start-ups from legal issues but also results in cost savin

196、gs and more efficient operations in the long run.By leveraging the expertise of finance professionals,start-ups can thrive in Indias complex regulatory and tax environment and continue contributing to the countrys vibrant entrepreneurial ecosystem.Earlier in this section,when asked where GenZ entrep

197、reneurs struggle the most,Nachiket and Pranay highlighted regulatory awareness.Compliance is key.Gen Z entrepreneurs may overlook regulatory aspects,causing diffculties later.Small fling gaps can cause delays,affecting investor interest and government support.For example,the Ministry of Corporate Af

198、fairs has a rule:inactive director identifcation numbers will be disabled.If not noticed at the time,resolving this later takes six to nine months.Entrepreneurs need to stay aware of such rules to avoid delays.Have regulatory awareness and seek the right advisers and mentors for guidance,as you focu

199、s on developing your core business,they concur.In conclusion,planning finances is crucial for the success of your venture.Develop a viable product or service to start with,manage and allocate resources efficiently to meet expenses as you continue to grow,integrate informed decision-making to ensure

200、sustainability and development,incorporate good corporate governance and internal controls for a solid back-end foundation,and take calculated risks.Financial diligence and compliance are essential for long-term success and sustainability.Effective management of regulatory and taxation challenges ca

201、n lead to improved financial stability,enhanced investor confidence and growth opportunities.Remember,starting a venture is just the beginning.Sustaining it is the real game,and financial stability is your winning move.27FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCEA

202、CKNOWLEDGMENTSThis guide was compiled and edited by Pooja Chaudhary,supported by Barsha Sharma of ACCA.ACCA wishes to thank the following ACCA members for their support in shaping the content and the narrative.Thanks are also due to the volunteers who crafted different chapters of the guide.Last but

203、 not the least,thanks are due to the interviewees who contributed to the research.Aditya Agarwal,co-founder of CampusSutraAlex Danylenko,Managing Director and Founder of BoodmoDarshana Kadakia,Partner and Valuation Practice Leader,Grant Thornton IndiaJamil Khatri,co-founder and CEO,Uniqus Consultech

204、Nachiket Kulkarni,AVP Social Entrepreneurship,NSRCEL,IIM BangalorePranay Doni,Manager,NSRCEL,IIM-BangaloreAcknowledgmentsAshish ShettyDirector Finance and Legal,The/Nudge InstituteDinesh JangidRegional Managing Partner,Uniqus Consultech LimitedJatin KalraDirector,Grant ThorntonBharat LLPKesavMuralid

205、haranManpreetKaurNimishaJohnsSai PriyaSanjayDwivedi28FOUNDERS GUIDE FOR START-UPS AND ENTREPRENEURS:ROLE OF ACCOUNTANCY AND FINANCEREFERENCESReferencesACCA(2016),Financial Management and Business Success a Guide for Entrepreneurs.See especially Chapter 3,Financing the Business.Downloadable from,acce

206、ssed 24 January 2024.ACCA(2021a),How SMEs Can Create a More Sustainable World A playbook.Downloadable from,accessed 25 January 2024.ACCA(2021b),Accountants and SMEs Creating a Sustainable World:Stories.Downloadable from,accessed 25 January 2024.ACCA(2021b),Rethinking Risk for the Future,accessed 25

207、January 2024.ACCA(2021c),Accountants and SMEs Creating a Sustainable World:SME Community Views.Downloadable from,accessed 25 January 2024.ACCA(n.d.),Internal Controls website article,accessed 25 January 2024.Chow,H.M.(2022),Can Integrated Thinking be the Key to SMEs Resilience?Downloadable from,acce

208、ssed 25 January 2024.Iwasaki,J.(2018),Risk and the Strategic Role of Leadership website article,28 February,accessed 25 January 2024Juul Andersen,T.and Shaw,G.L.(2014),The Key to Sustainable Risk Governance:Strong Core Values,Delegation and Accountability working research paper.accessed 25 January 2

209、024.Lyon,J.(2019),Risk and Performance:Embedding Risk Management website article,13 May,accessed 25 January 2024.Mavilach,R.(2020),Entreprenuers sic Diaries,Stages of a Startup:Lets Know About It,accessed 24 January 2024.Ministry of Commerce and Industry(n.d.),Startup India Kit:Starter Kit for Buddi

210、ng Entrepreneurs,Visionaries and Dreamers!,accessed 24 January 2024.Ministry of External Affairs,Government of India(2023),India Registers 100,000+Start-ups in 2023:Govt,25 September ,accessed 24 January 2024.Mint(2022),India Holds Worlds Highest Rate of Recognising Start-ups per Day,12 August,acces

211、sed 24 January 2024.USEFUL WEBSITESAtal Innovation Mission:Atal promotes a culture of innovation and entrepreneurship in India,accessed 28 January 2024.Goods and Services Tax portal:register and learn your responsibilities for GST,accessed 28 January 2024.Indian Angel Network:Money,mentoring and mar

212、ket access a platform for seed and early-stage investing,accessed 25 January 2024.Ministry of Commerce and Industry:all the relevant regulations and policies for start-ups in India,accessed 25 January 2024.Pradhan Mantri Mudra Yojana:funding and support advice,accessed 26 January 2024.Startup India:

213、information about funding,marketing and compliance for a new company,accessed 25 January 2024Startup India Seed Fund Scheme;details of this funding initiative are on,accessed 25 January 2024YourStory:stories about start-ups and entrepreneurships,accessed 28 January 2024.29ACCA The Adelphi 1/11 John Adam Street London WC2N 6AU United Kingdom/+44(0)20 7059 5000/PI-FOUNDERS-GUIDE-FOR-START-UPS-AND-ENTREPRENEURS