Virtual Accountant | The Purpose Of The Company Overview
In order to help a business owner complete the best company overview that they can say virtual accountant. They should understand what a company overview is. And the role it plays in the business plan itself.
The company overview is used by financial institutions. And particularly the underwriters in the bank. To verify important information. In order to approve or deny a business loan.
The more information that an entrepreneur puts in this section. And the more complete the information is. They can not only increase their chances of getting the approval that they need.
But they will also be able to ensure that the process goes as quickly as possible as well. This is especially important says virtual accountant. Since business loans are often well-known for being an extremely slow process.
And a lot of an entrepreneurs plans can hinge on getting approval as quickly as they can. They should not overlook the importance of spending time on this important section of their business plan.
The company overview section is so important, that it is put directly after the executive summary says virtual accountant. While the executive summary is a place to include all of the most important aspects of the business plan.
The company overview includes all of the vital information that a bank is going to need to have. In order to approve the loan in the first place.
Business owners should keep in mind that the person who is going to be reading the company overview section is an external reader. And is not necessarily the banker that they are familiar with. Therefore, they should not take for granted that a lot of the information will already be known.
So that they can ensure that the information they give is as complete as possible. Starting with the company name. They need to include both the legal name as well as the operating name in order to minimize confusion.
They also need to include contact information for the business. Including address if it has one. Phone number, email address, and website.
If the business is not yet open, and they do not have a physical address as of yet. The ritual accountant says they can use the address from the incorporation documents. So that the underwriter will be able to verify all of this information.
The next information that they should include in the company overview section. Is for the business owner. Their name, address, phone number, and email is important. And if there is more than one shareholder. That information should be included for each of the shareholders, regardless of what percentage of the shares they hold.
They also need to include the percentage of shares that each of the shareholders has. So that the bank can clearly understand who is the principal owner. When they are loaning money to the business, who is involved in accessing that money.
By ensuring that the information that they put in their company overview section. Is as complete as possible. Can help ensure that the bank has as much information as they need. And that they will also be able to verify that information.
Verifying the accuracy of the information is an important step in approving the loan. Which is why it is very important to include this information.
Purpose Of Hiring A Virtual Accountant?
Often, business owners put the company name and contact information says virtual accountant. And then the business owner’s name and contact information as the only important information for the company overview.
However, this section is for the financial institution to look at. In order to verify that the company has met all the requirements of the loan application. Therefore, there is other information that can be included here. That can help entrepreneurs chances of getting approval.
If a business owner has worked with an accountant. Either to get cash flow projections or working on a business plan. Including the accountant’s information here is very beneficial.
Financial institutions often consider working with an accountant a way to lower a business’s risk. And lower a business’s risk, the more likely they are going to be at getting approval for a loan. This because an accountant can help an entrepreneur understand their finances. And understand what they need to do in order to succeed.
Another important piece of information that belongs in a company overview section is an entrepreneur’s lawyer. A lawyer is needed to fill out important paperwork and sign documents on behalf of the business owner. So by including lawyers’ information here. Can help speed up the application process.
The underwriter can send important documentation directly to the lawyer. So that they can get paperwork like security on property and equipment. Or personal guarantees signed as quickly as possible.
If a business owner has planned on using some of their investments as security for their loan. They should be including this information in their company overview section as well. Primarily because the underwriter will need to verify those investments.
By including the information here says virtual accountant. Can help the financial institution see that the business owner has the information they need. And can verify it much faster.
Thanks also will need to see that the business has general liability insurance before they approve financing. So an entrepreneur can include this information in the company overview section. And be more likely to get that approval.
While some financial institutions will see that they do not give information about their insurance. And reject the application. Virtual accountant says this is a potential risk. But even if it does not cause the bank to reject the application. They will need to see it is before approving the loan.
This is another way the loan application can be slowed down. By requiring the underwriter to contact the business owner. Before they can proceed with the rest of the application. Including this information here. Can help not only get approval. But speed it up as well.
When business owners know what information the financial institutions and underwriters are looking for in the company overview section. They will be able to fill it out as completely as they are able to. And be far more likely at getting the important approval that they need. So that they can start their business.