The Influence of Initial Accounting Practices on Startup Longevity: A Quantitative and Qualitative Analysis of Financial Discipline and Decision-Making in New Enterprises

Early-stage accounting systems have a significant impact on a company's ability to survive because they provide information that aids in decision-making and foster a sense of financial discipline. The reason for this is that they provide information that helps with decision-making. This study employed a mixed-methodologies approach, combining quantitative analysis of financial data from 150 businesses with qualitative interviews with 20 founders and finance managers. What makes this research so intriguing is the mix of these two approaches. The goal of this study project is to ascertain how much structured accounting methods affect new enterprises' long-term survivability. Higher survival rates are significantly positively correlated with early accounting, budgeting, and money flow monitoring strategies, according to the quantitative data. Because it results in higher survival rates, this connection is important. According to a qualitative study, entrepreneurs who have established strict accounting practices are better able to predict financial risks, make strategic decisions, and win over investors. Their success is because of their strict accounting system. This study adds to the existing literature on entrepreneurship by establishing a connection between early financial practices and venture performance in the long term. In addition to this, it provides suggestions on how new businesses might use advanced accounting procedures from the very beginning of their operations. When it comes down to it, businesses that implement financial discipline at an early stage are better equipped to deal with challenges that arise often and to foster development over the long run.