If your company is preparing to raise capital for growth, it’s crucial that you understand exactly what investors are looking for.
Before investors see your company as a valuable proposition, they want to know that your accounting and management information systems are shipshape, dynamic and durable. Having timely access to information on your business’s performance is especially important through a fundraising process.
Here are our top tips for what investors look for in a company’s management information:
1. Company performance relative to goals
Investors want to see your specific KPIs, both financial and non-financial. Show them the measurable data points you use to measure your company’s performance against its goals. Less is more, so focus on the key metrics only, and certainly no more than ten. Ensure that they are forward-looking and help measure scalability and growth. This provides investors with evidence to back up forward-looking valuations.
2. Streamlined accounting process
Demonstrate to investors that your company is ready for growth, has robust and automated systems, and minimal duplication and human error. An automated invoicing system that codes, processes and posts purchase invoices to your accounting system in real time will impress investors.
3. Right information at the right time
Your company is growing, which is part of its attraction to investors. They want evidence that you are on top of your growth and have the systems that will accommodate its future success. Investors will likely stipulate that your system has the required capability and day-to-day functionality as well as giving them access to the information they need instantly.
4. Reporting specific elements of your company
Investors are far more likely to work with tax-efficient businesses, particularly those that claim R&D tax relief. By simply tracking your income and expenditure by reportable departments, your R&D tax relief claim preparation will be quick and easy. Categorising eligible costs at the point of entry makes them easier to identify when you need them.
5. Document management and security
Investors like to know you manage your company’s important paperwork centrally and securely using document management software. Apart from your financial information, this includes documentation concerning company registration and structure, IP, ownership details and regulatory compliance. You need to show investors that you can limit the information you share to specific folders and impose restricted access rights.
Our digital outsourcing solution combines cutting-edge technologies with our unique insights and advice to help you make the right business decisions. By combining up-to-date management information you can trust with our expert analysis and recommendations, you can take action with confidence. Get in touch today to find out more.