Management control systems and their implications for applying for funding in a start-up company
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School of Business |
Bachelor's thesis
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Authors
Date
2022
Department
Major/Subject
Mcode
Degree programme
Laskentatoimi
Language
en
Pages
26
Series
Abstract
The purpose of this thesis is to investigate how a start-up company approaches management control systems (MCS) and at what stage it adopts which MCS to support its operations. The aim is also to examine what issues are considered when applying for funding in different stages. The importance of accounting for entrepreneurship has become more highlighted in recent years, as in the past accounting was seen as more traditionally focused on more established firms and circumstances (Gomez-Conde et al., 2021). Researchers, such as Sandino (2007) have claimed that MCS are important for start-ups because they improve the management of the firm. MCS also improve the decision-making, coordinate the allocation of assets and information flows, as well as simplify contracting and communication as the business reaches a higher growth or scale level. Findings in this thesis show, that management control systems are used in the purpose of cash management and preparing the company for funding. MCS highlight the importance of monitoring the cash burn rate as well as the runway.Description
Thesis advisor
Taussi, ThomasKeywords
start-up, funding, MCS, venture capital