Discuss the Three Important Factors That an Entrepreneur Must Consider

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The Answer is When selection accountants for a firm,the entrepreneur will need to address several factors:
Service:Levels of service offered and the attention likely to be provided need to be evaluated.Chances are,for most startups,both will be higher in a small firm than a large one.But if an entrepreneur of a higher-potential firm seeking venture capital or a strategic partner has aspirations to go public,a national firm is a good place to start.
Needs:Needs,both current and future,have to be weighed against the capabilities of the firm.Larger firms are more equipped to handle highly complex or technical problems,while smaller firms may be preferable for general management advice and assistance because the principals are more likely to be involved in handling the account.In most instances,companies in the early stages of planning or that do not plan to go public do not require a top-tier accounting firm.However,one exception to this might be startups that are able to attract formal venture capital funds from day one.
Cost:Most major firms will offer very cost-competitive services to startups with significant growth and profit potential.That does not mean one will be talking to a partner.If a venture needs the attention of a partner in a larger firm,services of the larger firm are more expensive.However,if the firm requires extensive technical knowledge,a larger firm may have more experience and be more efficient.Many early-growth phase companies are not able to afford to hire a leading national accounting firm,and therefore a small local firm is best.

Discuss the Three Important Factors That an Entrepreneur Must Consider

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