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When to Set Up Accounting for Your Tech Startup

Here's when you need to set up an accounting function for your startup.

Lisa Shmulyan
Accounting & Tax
February 15, 2024

Being at the helm of a tech startup is exhilarating—the late nights, the breakthroughs, the uncharted waters. Yet, in the midst of coding sprints and product launches, it's easy to overlook one of the most critical components of your startup's long-term success: accounting.

As veterans in the entrepreneurial journey, we've seen too many bright visions dimmed by financial mismanagement. It's why we champion the integration of solid accounting practices from day one. So, let's explore the ideal timeline for setting up your startup's accounting system, ensuring your focus remains on innovation and growth, not damage control.

Day One Is Accounting Day One

Imagine launching your product with a clear financial trajectory rather than back-tracking to untangle messy records. From the first day, treating accounting as a cornerstone rather than an afterthought sets a firm foundation. 

Here’s the groundwork to be laid:

  • Business Bank Account: Separate your personal and business finances to simplify tax time and give you a clear picture of your burn rate.
  • The Right Tools: Choose accounting software that grows with you, like QuickBooks Online or Puzzle.
  • Capturing Receipts: Choose a card (such as ours) that automatically requests receipts on spending over $75 and pushes them to Quickbooks. By the time you have an audit down the road, you’ll likely lose them, so you’ll be grateful to have them all recorded in one place from the start.

Navigating Through Compliance and Taxes

Regulatory compliance and tax obligations don't have to be the bane of your existence. A proactive approach to accounting ensures you're always ahead of the game, avoiding fines, audits, and the stress that comes with them. Let Every shoulder the burden, giving you peace of mind that regulatory requirements are not just met, but optimized for your benefit.

Raising Capital—The Crucial Role of Transparent Financials

When the time comes to seek investment, your financial records become your startup’s resume. Many investors request information rights that require financial statements. Once you have a board, the board will also look over these financial statements at board meetings. Accurate, transparent accounting practices build investor confidence and can significantly affect the length and outcome of funding rounds. 

With Every, our platform ensures your financials are organized and easily accessible, turning potential investor scrutiny into investor confidence.

Scaling With Your Growth

As revenue begins to flow, the complexity of your financial landscape intensifies. This is where robust accounting practices prove invaluable. 

They enable you to manage cash flow effectively, make strategic hiring decisions, and understand the profitability of your services or products. It’s about having the pulse of your startup’s vitals, always.

Making Every Moment Count

Starting with accounting from day one isn't just about financial management—it's about cultivating a mindset focused on sustainable growth and innovation. As seasoned founders ourselves, we understand the intricacies of startup growth and the paramount importance of efficient operations.

Don't let accounting be an afterthought. Partner with a platform that understands and caters to your needs initially. Try our solution today and see how much more you can achieve when financial management is efficient, focused, and, most importantly, empowering.

It's time to unlock your startup's full potential. With Every, the future isn't just bright; it's clear and controlled. Welcome to the new standard of startup growth.

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