Finances and economy

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Finances and Economy

It has been said that the first and most important partner for every entrepreneur is an accounting firm. In most cases, it is worth leaving the financial matters relevant to the company’s operations to an external expert, but it is important for the entrepreneur to understand both the content of the calculations and the principles of corporate taxation and to keep up with changes in legislation, for example.

We help you with financial and financial matters. You can get information and application guidance from us when planning to apply for financing from a bank, Finnvera, ELY Center, Business Finland or a private equity investor. We will also assist you in applying for a start-up grant extension.

Entrepreneurship also requires planning for one’s own finances . An entrepreneur must understand the income statement, balance sheet and cash flow of both his company and his own finances.

Book an appointment for free advice

Our business experts will help you as sparrers on financial management and taxation issues. From our appointment calendar, you can book a free, personal consultation time when it suits you. We currently serve remotely and by phone in Finnish, Swedish, English, Russian and Chinese, so it is easy for foreign-speaking entrepreneurs to turn to us. Through the advice, the accountancy firms and Financial Experts of our member network are also available to you.

Participate in Company Development Day briefings

CompanyEspoon Company Development Day is a once-a-month webinar series open to all entrepreneurs. Each development day includes 3-5 free information sessions or workshops from which the entrepreneur can choose topics that interest him or her and are useful for his or her work – or participate in all of them. See the upcoming Company Development Days in our event calendar.

Discover new tools

The Money section of the Recovery Plan workbook provides concrete advice on the tight economic situation. Read more and also download the cash flow calculation template for your use.

Familiarize yourself with the financial and expert services of development activities

Among other things, the ELY Center and Business Finland offer financing and supported expert services to support business development projects.

5 advice for managing an entrepreneur's own finances

It is a good idea for an entrepreneur to start outlining their own finances with budgeting. For budgeting, the entrepreneur can use the Guarantee Foundation’s Penno or the budgeting application free of charge. Once the budget has been established, the entrepreneur should save the money in the buffer account to prepare for unexpected expenses.

The entrepreneur should set aside sufficient personal working capital to cover his own expenses. An appropriate buffer account balance could be, for example, an amount equal to two or three months’ net income.

Starting a business usually does not immediately generate enough profit to make private withdrawals or cash flow to pay wages. The entrepreneur must also take into account that invoicing does not immediately generate cash flow but it takes weeks for payments to arrive. Customers must also be properly prepared for late payments or even non-payment.

An entrepreneur must also be prepared for the fact that financiers require, for example, a 20% self-financing share as collateral for an entrepreneur’s loan. An entrepreneur loan is a personal loan for which the entrepreneur is personally liable even if the business is suspended or terminated.

It is advisable for an entrepreneur to organize the management of his or her finances into a continuous operation as well as the company’s accounting. Despite the outsourcing of accounting, the entrepreneur is ultimately responsible for the financial management of the company, which must be conducted on a regular basis as required by law.

Financiers, such as banks and Finnvera, usually also assess the entrepreneur’s own finances when making financing decisions. The entrepreneur must make sure that his own finances are in order. For example, there should be no default entries or tax liabilities, otherwise financing that is vital for the continuity or development of the business may be lost.

Entrepreneurs should also remember to dimension their pension insurance (YEL) so that they have access to social security: Kela’s basic daily allowance or earnings-related unemployment allowance as a member of the unemployment fund.

It is not advisable for a profitable entrepreneur to invest too much cash in a company’s bank account, but it is advisable to invest the extra cash in a cost-effective and liquid money market fund that invests in short-term interest rates, for example. The money market fund is excellent for managing an entrepreneur’s cash.

The advice was compiled by Matias Holmqvist, a corporate expert at Espoo, who has a master’s degree in economics and is an authorized investment services advisor (APV1).

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We are part of the Business Espoo business service network, which services are also at your disposal. Check out the services of our network:

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