No one knows better than you, how competitive video gaming or esports has exploded in popular culture. In the last few years, what was largely competition between amateurs has transitioned to a global profession that NewZoo reported was worth $US696million in 2017 and tipped to exceed $US1.5 billion by 2020.
In the coming weeks I’d like to share what I’ve learned as an accountant, business advisor and external CFO working with esports businesses. And, it all starts with getting the right financial management systems so you can survive, what is without doubt, a rapid growth trajectory.
Systems for surviving the esports Scene
For esports businesses fast morphing from small to large, qualified and specialised business support that understands your industry, is imperative for shoring up your financial future.
All business owners need 24/7 access to their financial records, and none more than those in the esports scene – no matter where you or your followers are in the world.
Real time accounting systems are the key to the financial management insights you’ll need for controlling your cashflow and making confident business decisions that will support and sustain your business growth.
While there are plenty of cloud accounting systems available, accepting stock standard or default software installations can compromise the quality of your financial management records.
You’ll need worksheets that are reformatted to present the financial information in a manner that’s meaningful to you.
You’ll also need systems that will enable you to manage multiple payment processors and international currency exchanges, revenue and various taxes – both local and for meeting the requirements of international jurisdictions where you may operate.
While these more complex matters will demand close attention, so too should the day to day operational matters that will accommodate what may well be an expanding payroll of permanent and casual employees, compliance reporting that will include among other things PAYG, Payroll Tax and Superannuation.
Then there are issues affecting your own personal financial affairs and those of your business partners that will inevitably cross over into your business affairs. These matters will include asset protection, business structures and often restructuring as your circumstances evolve, and tax planning so that you pay no more than your legally required tax obligation.
Strong financial management is underpinned by sound business and accounting systems and software that generates accurate records.
However, it’s how you use that information that will keep your business on track and achieving growth goals. Regularly reviewing your financial records with your accountant and business adviser will help you to gain the financial education and knowledge to feel confident to chase your goals.
This is where our specialised knowledge of systems and esports business operations combines with our external CFO (chief financial officer) service enables business owners to get on with driving your eSport business.
I build and customise Xero accounting systems that consider the specialist needs of esports businesses. If I can help you, please give me a call.