Advice and tips for entrepreneurs

“Many aspiring or new entrepreneurs find financial matters difficult or even intimidating, but the good news is that mastering the basics will take you far”, assures business advisor Tuija Räihä-Pundars.

What should you learn yourself?

According to the business advisors, it's important to understand basic financial concepts such as revenue, expenses, and profit: When does income come in, where does the money go, and is there any profit left from the operations?

“It’s also essential to understand gross margin, which shows how much of your sales income remains after variable costs. Understanding cash flow is equally important, so you can ensure there’s money in your account when bills are due”, Räihä-Pundars reminds.

Entrepreneurs should create a simple budget outlining expected income and expenses monthly or annually. You can use spreadsheet tools like Excel or Google Sheets for this. It's also crucial to monitor your finances regularly – weekly or monthly – checking how much money has come in, how much has gone out, and what your current financial situation is.

Räihä-Pundars also encourages learning to read a profit and loss statement and balance sheet, even at a basic level, and getting familiar with taxation:

“Learn the basics of VAT, prepayments, and income taxation, and make sure you understand when and how to submit tax returns. These topics aren’t necessarily easy, but they’re not rocket science either. They’re entirely learnable, and a good foundation can be gained through, for example, an entrepreneurship course or vocational qualification in entrepreneurship.”

What can (and should) you outsource?

Bookkeeping is a legal obligation, and for most entrepreneurs, it makes sense to outsource it to a professional. Preparing financial statements is technically demanding and usually best left to an expert.

“A good accountant is also an advisor, not just someone who records numbers. So especially if financial matters feel difficult, it's worth investing in a reliable partner. Still, it’s important that you understand the basics yourself”, Räihä-Pundars emphasizes and continues:

“Talk to your accounting firm or accountant, or ask for advice from more experienced entrepreneurs – perhaps a business mentor. Various financial tracking apps can also make an entrepreneur’s daily life easier. Payroll and employer obligations are another world entirely, so if you have employees, outsourcing payroll management can save both time and stress.”

“But remain actively involved yourself. You shouldn’t leave the company’s finances entirely in someone else’s hands, even if you outsource some tasks”, Räihä-Pundars stresses.

Shall we look at it together?

Book a free appointment with one of our business advisors. We can help you with budgeting, business planning, financing, financial forecasting, and risk management. Together, we can determine what you can handle on your own and where to find reliable partners.

Business finances are not a mystery – they are manageable when you focus on the essentials. Even small skills and the right mindset can take you far. The most important thing is to stay interested, track your finances regularly, and ask for help when needed.

“Financial skills grow through experience – the most important step is simply to get started. Even though the business is yours, financial success doesn’t have to be built alone”, concludes Räihä-Pundars.