Why your business NEEDS an annual budget

Budgeting is essential for all types of businesses, big or small. From new startups to large corporations, a budget will make sure you stay within financial targets and allow you to effectively plan for the future.   As a new Pakistani startup, creating an annual budget is especially critical. In fact, in many cases, it […]

What is Customer Lifetime Value and Why It’s Important

Whether you are a new business owner interested in evaluating your startup’s financial position, or if you are an investor performing due diligence before entering an investment agreement with a new firm, it is worth understanding the concepts of Customer Lifetime Value (CLV).   Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLV/LTV) are two […]

What is Customer Acquisition Cost and Why it’s VERY Important

When you start running a business, it can become very confusing to keep track of every metric and KPI that is supposed to measure your startup’s success.   The truth is that while many metrics are good for getting a general idea of your company’s financial position, very few actually give meaningful, long-term insights into […]

Benefits of Having an Outsourced Accounting Function for Your Business

Entrepreneurs striving to take a young business off its feet and running face numerous challenges. A young business may meet an unexpected dilemma as the novice entrepreneur struggles to keep it afloat.   What young businesses most dread is a bad decision that might send them dwindling downward. Entrepreneurs should first build a strong business […]

How to Create a Financial Business Plan

Financial management applies general management principles to plan, organize, direct and control all financial activities in a business. A critically important aspect of a business is to manage its financial activities so that funds are properly procured and utilized. A successful business ensures adequate supply and optimum utilization of funds, safety on investment and a […]

What is the Difference between expenses and COGS?

Many people have a difficult time understanding the difference between cost of goods sold (COGS), and operating expenses. It is normal to feel confused, after all, both are essentially money that is being spent from your business.   However, COGS and operating expenses are fundamentally different, and both show different things about your company’s financial […]

How to Lower Operating Expenses of Your Business

For most ambitious startups, the unexpected COVID pandemic has delayed many business plans causing financial stress. To get up and running again, your startup needs a well-planned recovery strategy!   A logical way out is to lower operating expenses. Spending less money on operating costs will enable better success in this uncertain time for your […]

What is a Company’s Burn Rate and Runway?

New businesses are in a delicate situation where they are not earning revenues. However, they are spending money to invest in equipment, pay expenses, overheads, and more.   Therefore, it is very important for Pakistani startups and new businesses to keep track of the money they are spending. It is also necessary to understand exactly […]

5 Financial Management Mistakes Startups Make

Effective financial management is the lifeblood of any business. And for new startups, having good financial management is a matter of survival. Pakistani startups that are unable to manage their finances and bookkeeping are often unable to witness healthy growth and profits.   Hence, bookkeeping, budgeting, and accounting are all necessary for monitoring your company’s […]

What is a Virtual CFO and why you need one

A chief financial officer (CFO) is an individual who is responsible for managing all the financial actions of a company. This includes tracking cash flows, bookkeeping, creating accurate financial statements, managing tax liabilities, and financial planning.   The CFO plays a huge role in making sure that your finances are managed effectively and that all […]