The video game industry, with its dynamic and fast-paced nature, presents unique financial challenges and opportunities. For developers and companies in this space, partnering with specialised accountants is crucial for navigating investment rounds and meeting audit thresholds. At Plus Accounting, we pride ourselves on offering tailored financial services to the video game sector, ensuring our clients can focus on what they do best—creating innovative games.
The Importance of Expert Accountants in the Video Game Industry
The video game industry is characterised by rapid growth, significant investments, and a global market. As such, financial management requires a nuanced understanding of both the industry and the specific financial intricacies involved. Here’s why having an expert accountant like Plus Accounting is essential:
Specialised Knowledge: Our team understands the unique revenue models, including microtransactions, in-game purchases, subscriptions, and royalties, that are prevalent in the video game industry. This expertise allows us to provide precise and relevant financial advice.
Regulatory Compliance: The industry is subject to various regulations, including those related to digital sales and international transactions. We ensure compliance with all relevant financial regulations, avoiding costly penalties and legal issues.
Tax Efficiency: Video game companies often qualify for specific tax credits and incentives, such as the Video Games Tax Relief (VGTR) in the UK. We help our clients maximise these opportunities, reducing their overall tax burden.
Navigating Investment Rounds
Securing funding is a critical milestone for many video game companies, whether through venture capital, private equity, or other sources. Here’s how Plus Accounting supports our clients during these pivotal moments:
Financial Forecasting and Modelling: We provide detailed financial forecasts and models that give potential investors a clear picture of your company’s potential. This helps in building investor confidence and securing the necessary funding.
Due Diligence: Investors will conduct thorough due diligence before committing funds. We ensure that your financial records are accurate, transparent, and well-organised, making the due diligence process smooth and efficient.
Valuation Support: Determining the right valuation for your company is crucial during investment rounds. We assist in accurate company valuation, ensuring you get the best possible terms from investors.
Meeting Audit Thresholds
As video game companies grow, they often meet certain audit thresholds that necessitate a formal audit. Plus Accounting is adept at guiding companies through this process:
Audit Preparation: We help prepare all necessary documentation and financial statements, ensuring they meet the stringent requirements of an audit. Our proactive approach minimises disruptions to your business operations.
Internal Controls and Systems: Establishing robust internal controls and financial systems is crucial for audit readiness. We assist in setting up these systems, ensuring accuracy and compliance with industry standards.
Ongoing Compliance: Beyond the initial audit, we provide ongoing support to maintain compliance, helping to streamline future audits and financial reviews.
The video game industry offers exciting opportunities, but also presents significant financial challenges. Partnering with Plus Accounting ensures that you have the expert guidance needed to navigate investment rounds, meet audit thresholds, and achieve long-term financial success. Our specialised knowledge, commitment to regulatory compliance, and proactive financial management strategies make us the ideal partner for video game companies looking to thrive in a competitive market.
At Plus Accounting, we are dedicated to supporting the financial health and growth of our clients in the video game sector. Contact us today to learn more about how we can help your business succeed.
Author: Luke Thomas, Director, Plus Accounting
Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.
Date Published: 25 July 2024