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Episode Date: February 04, 2021
https://youtu.be/3C0S9zk_eqQ
Top Insights
- It would only take you a day to master the 5 items needed to scale your company, with all the low-cost software and services available today. In the past, it may have taken you 2-3 days for each item.
- Get these right, and you will send all the right signals to your investors and employees while avoiding costly mistakes.
- Cap table management software will make it easy to keep track of the dilution in your company.
- After you take money, you're going to need to start producing financial statements.
- Income statement - revenue and expenses (burn rate)
- Balance sheet
- Cashflow statement
- When you're about to get a wire, you definitely want to go to a bank that's used to working with startups and set up a fresh account. Do not let it hit your personal bank account and do not purchase personal things with your company bank account. This will save you a lot of money trying to unwind this stuff later.
- The first thing the IRS asks for when you're audited is all money transactions going back and forth between the founder and the company because this is the easiest way to avoid payroll taxes.
- By avoiding any mixing between personal and business accounts, you can prevent thefts at your company. Employees who feel underpaid may take liberties with what they expense, which is theft if there is no authorization given to them. Keeping all expenses in the appropriate accounts will help you keep track of who is spending what and what expenses were appropriate.
- Previously you needed a personal guarantee or had to put money into a bank account to get a credit card. Now you can get cards that are based on auto-debits.
- Avoid getting cards for the business that require personal guarantees.
- Quickbooks Online is the standard accounting software. A lot of apps integrate with Quickbooks. It is the most recommended.