The world and economy have evolved, and so has the face of business. When we talk about entrepreneurship, the role that comes into mind is primarily operational and managerial. However, an entrepreneur’s job is so much more than that. The initial days of a start-up are challenging, scary, and outright exhausting. All members must multi-task and fulfill multiple roles on top of their designated functions. However, the most taxing experience of all is that of the founder or entrepreneur, who, looking after their roles, must also oversee the rest of the team’s performance.
The Entrepreneur and Finance
Finance is one of the business functions in which the entrepreneur must remain involved. Since start-ups rely heavily on external sources for funding, the initial years require extremely stringent budgeting. All functions have to abide by that budget, which is generally quite scarce. As an entrepreneur, it is essential that one is thoroughly aware of their company’s finances and can navigate through the accounting ledgers so they can make informed and sound money decisions. Therefore, developing skills in accounting can help entrepreneurs manage their finances to a great extent.
Entrepreneurs from even a non-finance background can opt to pursue an MBA degree in accounting and finance. However, this can be troubling as the pressure of running a start-up overwhelms a person without adding the stress of going back to school and attending classes. Fortunately, many universities offer online MBA programs that an entrepreneur who holds undergraduate degree can complete at their own pace while working full-time. If you are still doubtful that studying accounting and finance can benefit entrepreneurs in the long run, here are some of the top reasons to earn an MBA in accounting that can convince you.
Four Reasons Why You Should Pursue an MBA in Accounting
Read on to learn how knowledge of accounting and finance with an MBA can help entrepreneurs in boosting their businesses:
1. The Numbers Matter
Also, any organization’s future relies significantly on how much profit it can yield. Regardless of the corporate culture, CSR, mission, and other factors, it all eventually comes down to the profit a business is making. In the end, the numbers are all that matter. By pursuing an MBA in accounting, you can master the principles of finance and dive deep into your company’s financial side.
Additionally, for any business to remain successful after hitting profits, it has to work on a sustainability model. Without a financial perspective, it is easier than imaginable for a year’s top-growing start-up to shut down within 12 months. Many successful start-ups with great potential fail due to a lack of sustainable planning. Studying finance and accounting as an entrepreneur will help you develop the financial insight required to work toward sustaining your business in the long run.
2. The Power of Financial Literacy
Financial literacy is an essential skill often overlooked by people, considering it’s a separate field and can only be managed by specialized professionals. However, the power of financial literacy is more vital than most of us can fathom. For an entrepreneur, getting investors is the biggest priority, and the only way to get people to put money into your business is to show what you bring to the table. Investors are generally money-minded, and their primary concern is what returns a start-up can offer on their investment. With sound knowledge of accounting and finance, you can show them exactly what you have to offer in numbers.
The same rule applies to customers and clients. You can sell your business to potential clients and explain the value your product or service brings. Further, with an intrinsic understanding of finance, you can determine how to strategically market your business to make it appear as a worthy investment for potential customers. Having firm knowledge can help you decide how much you can afford to spend on attracting customers. After all, money begets money!
3. Sound and Informed Decision-Making
For an entrepreneur, any given day is a series of tough decisions. The job is far from a walk in the park, from determining how to retain employees to figure out how to cut costs. Most decisions, primarily those related to business development, involve considering the finances. You can always leave finance-related work to your accounts manager; however, you can only partially rely on them to make your decisions.
As an entrepreneur, any decision you make can substantially impact the business. Therefore, before giving the final word, you need to look at all aspects and functions that affect or stand to be affected by choice. Naturally, finance and accounting are one of the most crucial functions and must be considered before making any money-related decision. With an MBA in accounting, you, as an entrepreneur, can make better and more sound decisions for the growth of your business.
4. Plan to Succeed
Strategic planning is one of the core aspects of entrepreneurship, and for a start-up to establish itself and succeed in the long run, there must be a focus on planning and growth. For small businesses, the growth plan often includes financing options, such as loans and credit from banks or other financial institutions. With an innate knowledge of accounting and finance, you, as an entrepreneur, can make practical plans for scaling and growth without undertaking more liabilities than you can manage.
This ability to make effective, financially viable plans will help you develop other business strategies and manage the company with a more hands-on approach. At the same time, financial literacy and understanding of the plans make it much easier for you to spot any discrepancies by internal or external stakeholders.
For an entrepreneur, financial literacy and accounting skills are genuinely indispensable. A grasp of these skills allows an entrepreneur to remain on top of all matters related to their business, significantly increasing its probability of success and sustainability. Plus, with a degree in accounting, you will benefit in a professional and personal capacity as the same would also teach you about matters such as taxes and financial management.