Do young business people take accounting seriously?

Generation Y: They're online, but are they onboard with an accountant?

The Foundation for Young Australians submission to the Productivity Commission Draft Report on Business Set-Up, Transfer and Closure last year recommended that young entrepreneurs needed backing and assistance, including targeted initiatives to improve the business start-up environment. That includes information brokering and wrap-around business services, including accounting support.

Do Generation Y make use of accountants enough?Do Generation Y make use of accountants enough?

Why are young businesses owners failing to see accountants?

While accelerators and incubators are a good way to nurture young business people, a reliable accounting firm should underpin the launch of any business. After all, accountants can help clarify cash flow as well as point an entrepreneur toward opportunities for growth, whether that's angel investment or tax breaks.

Ten years ago Paul Clitheroe, Chairman of the Financial Literacy Foundation Advisory Board for the Australian Government's Financial Literacy Foundation, identified a perception in young Australians and the wider public of thinking that money is 'boring' or 'not important to be happy in life.' That 2007 report heard 61% of young people would not consider return and 77% would not consider risk when choosing an investment while only 48% of young people said they spend a lot of time thinking about financial information before making a monetary decision, compared to 73% of adults.

Not planning ahead

Few reported having a business development plan. "It's important to learn more about the things where our confidence is lacking and a lot of us want to manage our money better," Clitheroe said. "The findings of this report tell us a lot about where we can focus our efforts to get the best results. The more we know about people's attitudes and behaviour, the better we'll be able to stimulate positive change."

Today WMC provides helpful accounting services in Victoria and will recommend when taking accounting onto the cloud (purely online) is best for any business. The integrated updating capabilities of cloud accounting cash flow can mean entrepreneurs have a better understanding of how money is coming in and going out especially compared to older accounting software systems which encounter problems when everything is tallied at the end of the month or limited to quarterly business activity statements. 

Make an appointment to bring your business worries to WMC, who can smooth everything out and give sage advice to anyone from bright young entrepreneurs to veteran business developers. 

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