In the early stages of a startup, a founder’s attention is needed everywhere: hiring and firing, opening a bank account, talking to customers, convincing investors, designing flyers, determining cash flow, reviewing contracts, finding new sources of revenue, negotiate, smile, present, seduce, meet, emails, coffees, zooms, and more. How do they do it all?
Multitasking and pulling several all-nighters is not the wrong approach at first. But if a startup is going to be successful, the first milestone is outgrowing its founder.
Rather than trying to do everything, a founder should aim to do as few things as possible very well, and rely on their team for everything else. Their vision, not their management skills, is what drives the organization forward.
Cash is king. Hiring a qualified accountant will ensure that you keep track of your daily, weekly, monthly, and quarterly cash flow and foresee trouble ahead.
Founders need time to focus on strategy rather than compliance, tax, or bookkeeping. Focus on product-market fit and building a solid team culture. Everything else is not your priority.
Again, there is no time for this, and yet, it’s critical for your business to be up to date on regulations and best practices. An outsourced bookkeeping service provides this.
If you are fundraising, the Balance Sheet will be one of the first things a VC will look into during the Due Diligence. Not having one is as red as red flags can be.
The P&L should play a significant role in your decision-making process. Projecting a roadmap without one is like cave diving without a flashlight.
Bookkeeping allows you to track all movements daily and prepare yearly reports automatically, because all the necessary information is already there.
A P&L is not an easy tool to navigate on a daily basis. But a dashboard is. The P&L gives you the necessary information to create a finance dashboard and keep it updated. If you want to make decisions based on numbers, this is the way to do it.
Bookkeeping also makes tax preparation easier because all transactions are categorized and compressed.
You can reduce costs through tax deductions. Clever tax planning involves bookkeeping and the assistance of an expert tax accountant.
Businesses and founders almost always neglect performance measurement. Setting objectives and measuring these against results such as customers acquired, revenue increased, efficiencies acquired, etc., involves knowing your numbers.
If you are interested in acquiring a Bookkeeping service, the VC-backed specialists at Lazo will quickly and passionately jump in your aid.
Schedule a quick free consultation call using this link. Stop worrying and start doing!
The Lazo Team💜.