Startup entrepreneurs are spread thin, making it easy to overlook the importance of establishing solid accounting practices from the very beginning. New product development and flourishing sales won’t amount to much if your expenses are astronomical. Strategic business growth can’t happen if you don’t understand what your financial statements are telling you. You must understand your past activity and where you currently stand to plan for the future and move ahead. If you’re running a startup or small business, it is crucial to think through financial implications like these.
Whether you have a small team in place, or if you’re still working to build your brand, developing an understanding of basic accounting is key. That’s why Brad Shaver, XMI’s Director of Accounting, helped assemble a list of startup accounting best practices for our friends at Jumpstart Foundry, a seed-stage healthcare innovation fund that invests in healthcare startups all over the country. They’re interested in seeing their startups succeed, and they understand the role accounting plays in that success. No matter what industry you’re in, this list applies to you, too. To successfully build a business, you must understand your financial standing. Check out our suggestions for implementing good practices now to yield big dividends later.