Managing finances a big challenge for 75% of entrepreneurs

A new study from Sage reveals the importance of sound financial advice to start-ups, and a potential opportunity for accountants.

Sage’s research looked into how supported entrepreneurs felt in their start-up journey. Although the study largely focused on differences in gender-based and regional lines, there are some key take-aways for start-ups and accountants in general.

Accountants can bridge the knowledge gap

Alongside managing finances, entrepreneurs’ biggest obstacles included understanding tax requirements (74%), becoming profitable (74%), work-life balance (71%) and minimising costs (68%). They also feel they need to develop and improve upon financial management (37%), tax (33%), and stock management (24%). Many entrepreneurs are still facing these issues, which serves to highlight the potential importance of accounting roles in the start-up world.

Furthermore, over a quarter (27%) of entrepreneurs felt they were not aware of what technology is available to them and what they should use, such as accounting applications and other financial management tools.

Technological help

The rise of cutting-edge technologies, such as artificial intelligence (AI), may also prove instrumental in relieving the burden of certain tasks. Approximately 68% of respondents reported moderate to extensive use of technology and digital tools like accounting applications and inventory management software.

Accountants can leverage these tools to streamline business operations, enhance productivity and expand customer reach more efficiently.

About the study

Sage’s study focused specifically on how supported female entrepreneurs felt and where in the country female start-ups did best. The research delved into the areas where women entrepreneurs have found their footing, the obstacles they have faced and the support systems that have aided their start-up journey.

The North East ranked highest. There, 81% of female entrepreneurs reported feeling supported as they embarked on their business ventures, and 69% of them highlighted their ability to manage the delicate balance between work and life commitments.

AAT Comment offers news and opinion on the world of business and finance from the Association of Accounting Technicians.