Early-stage companies need clean accrual books from the start, because investors, lenders and acquirers will eventually read them. Getting the structure right early is far cheaper than cleaning it up during a raise.
Accrual statements, a clean chart of accounts and reconciled balances that hold up in due diligence.
Monthly burn, runway and cash forecasts built from the actual books, not a separate spreadsheet that drifts.
Financing instruments recorded correctly and kept consistent with the cap table.
Research activity and costs documented during the year so the credit can be claimed, and state registrations kept current as remote hiring spreads.
Net cash spent each month.
Months of cash left at the current burn.
Monthly or annual recurring revenue, with customers gained and lost.
Revenue after direct delivery costs, which investors weigh heavily.
Each of these is supported every month by a workpaper that ties the balance to a source document, so the number can be trusted and followed by anyone who reviews it.
Annual and multi-month contracts recognized over the service period.
Software, insurance and deposits spread over the periods they benefit.
Recorded at their terms and reconciled to the cap table until conversion.
Vendor bills, payroll and bonuses incurred but not yet paid, so burn is measured accurately.
Some qualifying small businesses can apply the credit against payroll taxes before they are profitable, depending on eligibility.
Founders and early employees receiving stock subject to vesting have a short window after the grant to file.
Gain on a sale may be partly or fully excluded if the requirements are met from formation.
Delaware franchise tax, plus registration and payroll in each state where employees work.
General information, not advice for your specific situation. Call 239-896-6799 to talk through yours.
A short conversation is usually enough to find out how I can help you and your business.
Based in Denver, Colorado. Clients in every state, handled remotely.