Documentation tips that can boost Investor Confidence.

[Etini]

One of the things that a business so badly desires is to build a positive investor confidence. That can help the business if they have any need to raise funds from investors. One of the factors that can boost confidence of investors is the quality of documentation a business practices. Here are some tips related to documentation that can help with investors confidence.

1) All financial records must be transparent and verifiable. Investors don't take chances when studying financials and any attempt to falsify financial reporting discovered by a potential investor would kill his interest for investing on that business.

2) Have a realistic financial projection: Don't make bogus financial projections. Make it smart, organic and achievable and the investor would want to invest because it shows that the business has a sense of direction.

3) Value your company to be compelling: Valuation reports for your business should be compelling while not being misleading. Use valuation methods that are best for your industry to create a compelling valuation. You would surely get an investor interested with a good valuation report.

 

[saoussen5765]

It is the owner of a company that tries to falsify financial reporting because in some countries there is a sad truth. If you declare everything you will find yourself paying from pocket money because they impose heavy tax on the companies. Therefore owner for example declares 50 % of the transactions or revenues to the state to have an equilibrium between what to pay as tax and revenue for cash transactions. If he doesn't do this he will close company in 2 or 3 months due to high tax imposed. Hope the picture is clear to you.

 

[Suba]

That's right, investors need transparent financial reporting, presented honestly, accurately, validly and timely so they will be able to make smart investment decisions. So business people's efforts to increase the transparency of financial reporting must present financial statements must adopt international financial reporting standards that have been recognized globally such as International Financial Reporting Standards (IFRS), apart from that financial statements such as balance sheet, income statement, cash flow and retained earnings must has been audited by a public accountant,