All You Need to Know About Your Start-Up’s Financials
Simple, but important accounting concepts to know as management
New inventions and innovations through technology drive the U.S. economy. New entrepreneurs generally do not have a firm grasp of how financing works or even how their financial statements should look like. With a quick 9 minute read, you will understand all of the basics of your start-up’s financials. Without hiring a professional accountant in the beginning, you can manage your finances independently.
Having proper financials ensures statutory compliance, gives you the ability to create budgets, projections, and change strategy according to financial performance. If your business is looking for additional funding, banks and investors require proper financial statements before making their investment decisions. Nobody will trust suspect financial statements and most of the time you will need the statements audited.
Accounting refers to the systematic and detailed recording of the financial transactions of a business. This post details the major concepts surrounding assets, liabilities, revenues, and expenses but skips out on Equity, which takes more time to learn and is less intuitive.
Understand that accounting rules are complex and the worldwide CPA designation requires…
