Introduction
How many of you are aware of the popular show Shark Tank India, which happens to be one of the most trending shows on OTT today? The show reflects the booming entrepreneurial wave in India. If you have followed the show, you must have heard the sharks question the founders on numerous financial metrics, right from their unit economics to their net profit.
In cases where the founders have appeared confused about their numbers, the sharks have been outright about the founder and business not heading in the right direction, eventually leading to rejections. This clearly shows the importance of thorough knowledge of accounts and finance in the success of any business. Beyond pitching for investments, other critical aspects of business, such as expansion, diversification, and growth, also demand a thorough understanding of accounting and finance.
Recognizing this, we at the Indian School of Business & Finance (ISBF), one of the leading finance colleges in Delhi, have introduced a B.Sc. (Hons) in Accounting & Finance Program to equip students with a solid foundation, whether they choose to become entrepreneurs or pursue careers in finance and accounting. Today, in this blog post, let us see how accounting and finance act as crucial pillars for every business.
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Strategic Decision Making:
The crux of any business is data-backed decision-making, which is where accounting and finance outputs play a formative role. Be it in terms of managing their expenses, investing in the right places, or tapping on growth opportunities, businesses will have to shoot in the dark in the absence of solid financial and accounting data.
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Futuristic Vision:
Running a business is not limited to thinking about today alone. What is equally or more important is preparing for the future and the unannounced contingencies. Here again, accounting and finance come to the rescue by putting financial forecasts and budgets on paper.
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Ringing in Profits:
Why do you think entrepreneurs run a business? While one of the reasons is to solve customer pain points, next up comes making decent profits. An easy way out of achieving this goal is curbing unnecessary expenditures and doubling up on products and service offerings that guarantee increased revenues and profits. Accounting and finance make deriving this conclusion easier.
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Managing the Cash Flow:
You must have heard of businesses that were once running successfully suddenly announcing bankruptcy. What do you think could have gone wrong? There could be various reasons for that, but one of the most common reasons is when businesses do miserably in terms of managing their cash flows.
This only underlines the weakness of their accounting and finance verticals. To prevent this from happening, it is important for businesses to be aware of their numbers in terms of current expenses, payable debts, and growth aspirations. Can we do it without an understanding of accounts and finance, then? A big, loud NO!
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Building Stakeholder Confidence:
Irrespective of whether you are running a bootstrapped or a funded business, you cannot overlook the need to build stakeholder confidence. When we say stakeholders, we mean a business’s customers, investors, employees, and every direct and indirect party that has some form of interest in the business.
On-point accounting and finance ensure that stakeholders remain in the loop and are willing to be associated with your business for the long term.
Final Words:
You will be delighted to know that some of the highest-paying jobs in India are in the finance sector. This is one of the strongest reasons that attract a lot of students to pursue accounts and finance education every year.
Speaking of the Indian entrepreneurial ecosystem, there are about 104 million entrepreneurs in India. You can only imagine the number of start-ups likely to pop up their heads this year. Then there are the already established businesses. This only shows that there will be ample accounting and finance openings that you can tap into.
How do you get an edge? Have a degree to your credit from the Indian School of Business and Finance (ISBF), recognized among the best finance colleges in Delhi. Moreover, the institute is associated with the University of London and boasts of the curriculum from the London School of Economics, further adding to the worth of your degree. Enroll yourself today.