Up to date financial and management information cannot be underestimated, not just for start-ups but for all companies in their business cycle.
START-UPS are failing to see the importance in managing their financial affairs, with the majority of bosses failing to consult with a finance professional, according to a study by KPMG. For businesses that are less than a year old, KPMG found that they are relying on management accounts that are, on average, four months out of date. There also seems to be minimum thinking behind important financial decisions. Over a third of startup bosses are making vital decisions based on quick calculations of available funds, with some execs simply looking at how much money is in their bank account before signing off on big decisions.