What should a good set of first year company accounts show?
What should a good set of first year accounts for a Ltd Company show? Ideally profitablity but this is rare for a one year old company. Other then that - is it sales? Or a commitment by the executive directors to the company by taking lower salaries or investing their own money and thereby demonstrating their long term dedication to the company? Especially from the perspective of a potential investor or client - what would put you off or attract you to a company on the strength of their first year accounts?
Investing - 2 Answers
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Answer 1 :
If I were a potnetial investor I'd want to see steady growth in revenue, diversity in revenue streams, capital expenditures, and yes reasonable salary expenses. Profitability wouldn't be as important, especially if the cap-ex is there. Probably the biggest thing that would turn me off is struggling revenue and an overall lack of creativity
Answer 2 :
Just steady growth , a first year is used to establish a company , by the end of that year you should have a solid customer base to work from and accounts would show a probable future income rather than a possible one . The commitment you describe would very probably be seen as clinging on in desperation to a failing business by any potential investor , successful companies do not depend on personal sacrifice to stay in business .
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