When you think about the end of the month, what keeps you awake each night? If you say your investor board meeting, you’re in good company! The best way to ensure you’re in good shape when the date for that meeting gets closer is to package the information you want to discuss in the best way possible well in advance. With that, I’d like to introduce you to the art of the investor report.
As a financial consultant at inDinero I hear the ins and outs of businesses of all sizes, but more often than anything I talk with smaller startups getting their feet off the ground. I’ve found that the longer I talk to these small business owners, their friendly, informational tone tends to shift into a confession session of all their back-office sins.
Accurate small business accounting is the difference between (startup) life and death, and ignorance of an out-of-control burn rate is one of the top symptoms of a company in trouble. Paul Graham, the founder of Y-Combinator, once said that “When startups die, the official cause of death is always either running out of money or a critical founder bailing,” and although we can’t help with your founder relationships (though we do know a good couples counselor who might help), we can definitely offer guidance for preventing the former by helping you manage your startup spending. Here’s how.
(Note: this article originally appeared in slightly different form on the Lighter Capital blog and is republished with permission).
Is your business considering a move to accrual accounting? A key thing to understand is what deferred revenue is and how to accurately record it while following Generally Accepted Accounting Principles (GAAP).
Understanding how accrual accounting works can seem a little overwhelming and confusing. We’ll walk you through the basics to help you get started.
Retiring eventually sounds fun right? And so does saving on taxes now. Luckily, as a business owner, there are ways you can feed these two birds with one scone.
As 2016 kicks off to a fast and furious start, many employers and payroll processors are awaiting the final word on President Obama’s call to raise the annual salary cut off for overtime pay from $23,000 to slightly above $50,000 (a difference of about $528 a week). This jump would benefit upwards of 13 million American workers and is historic in nature because it’s a change that hasn’t taken place since 1975, when a $23k annual salary had the spending power $101,677 has today (source: United States Department of Labor Inflation Calculator).
My colleague recently wrote about the importance of closing your business’s books at the end of your fiscal year. A few of you reached out to us after reading her post, asking for more about some of the financial statements that Melissa mentioned.
We’re happy you asked!
I’m a huge fan of charitable giving year round, but especially during the month of December. Once the month kicks off with #GivingTuesday, businesses and individuals around the world begin integrating giving back as a great way to observe the holidays throughout the month.
This is also where your business’s tax strategy and its responsibility to give back to the community can intersect. There are dozens of tax deductions small businesses can use to lower their taxable income, but giving back to charities is the only strategy that gives your business a way to create goodwill on any scale, from your local community or nation-wide.