The Best Accounting Software For Startups

I’m often asked what the best accounting tools for startups are. We almost always recommend QuickBooks to our clients, but there are several options to choose from. In my experience, the real question is what is the best accounting solution for your particular startup? The answer comes down to a few questions: What stage is your startup in terms of revenue and transaction complexity? Do you have external investors? What kind of reporting and other functionality do you need? Do you have a grasp of basic accounting concepts? Do you prefer a cloud-based or desktop option? The answers to these, and of course your constraints in terms of how much you can afford to spend on a solution as well as how much ongoing support you’d like will help you narrow the options. Here’s a quick overview of the leading accounting software tools. QuickBooks An easy to use, feature-rich, inexpensive …
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Cannabis Startups: Exploring the Opportunities and Challenges — May 26th San Francisco Panel Event

Originally published on PRWeb. San Jose, CA (PRWEB) May 19, 2015 Early Growth Financial Services (EGFS) is pleased to announce its first-ever panel event focused on cannabis-based businesses. Co-hosted by First Ascent Associates and Runway Incubator, “Cannabis Startups: Exploring the Opportunities & Challenges” will take place on May 26, 2015 at Runway Incubator in San Francisco, California. This event will be a chance for founders within the cannabis industry to hear from and network with other founders, meet potential investors and others interested in the industry, and learn from business partners who support the space. Topics to be covered include specific tax, financial, and operational hurdles entrepreneurs focusing on this space have to contend with, how to access investment capital, and more. EGFS is an outsourced financial services firm, headquartered in Silicon Valley that provides day-to-day accounting, CFO services, tax, and valuation support to early-stage companies nationwide. Founder and CEO …
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Startups And Compliance: Which Employee Documents to Keep

This guest post was contributed by Justworks. In an age of email, Google Drive, and Dropbox, our files tend to be scattered everywhere. Rarely are they where we need them when we need them, but most of the time that’s okay. When you’re starting a company though, there are a few employee documents you are legally required to keep and a few we would strongly encourage you to keep. Documents you have to keep W-4 — This is the Employee’s Withholding Allowance Certificate. This document tells you how much federal income tax to withhold from each employee’s paycheck. I-9 — This is the Employee Eligibility Verification Form I-9. This is needed to prove that all of your employees are eligible to work in the US. The USCIS (immigration services) can request these files at any time, and you need to keep them for at least 3 years. Employment Application — …
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How Do Accounting Rules Impact SaaS Businesses?

When it comes to revenue recognition, SaaS companies have some special challenges, including additional considerations that require them to exercise a great deal of discretion in regards to when and how to recognize revenue and record expenses relative to other type of businesses. That will become even more challenging once FASB’s new accounting standards go into effect, beginning after 2016 for public companies and after 2017 for private ones. The main distinction between SaaS companies and other types of software businesses lies in how they deliver their products. For software product companies, customers take physical possession of the software. In SaaS companies, since software is hosted/cloud-based, with the provider retaining control of the software, the transfer never occurs: hence software as service. What current accounting rules say about revenue recognition According to FASB, “An entity should recognize revenue when (or as) it satisfies a performance obligation by transferring a promised …
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Commercial Leases: Read the Fine Print Before You Sign

Guest post contributed by Tricia Meyer, Managing Attorney at Meyer Law. Making the big leap from your home or co-working space? Need a change of scenery? Moving into your own, brand new office digs? The following are a few things to consider when looking over your new lease. The length and terms of your lease Depending on your company’s growth stage, you’re going to want to consider the length of your lease. Many times, with commercial leases, property managers are looking for longer-term commitments. Sometimes these commitments can be as long as 10 years. Your best bet is to look for a lease that is short-term with multiple options to renew.That way, if you outgrow the space, you won’t be stuck with the lease. Exit strategy If you anticipate significant growth over the next few years, you’ll want to have the ability to terminate your lease, if necessary. It is …
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TechShop Case Study

 

Lessons From A Startup Pitch Competition

In addition to partnering with co-working spaces and business accelerators, EGFS participates in a number of events, workshops, and office hours at top tier universities including Stanford, Berkeley, USC, University of Washington, and NYU. Recently, I had the chance to sit through several mock pitches at Columbia’s Startup Lab in New York. Chris McGarry, Director of Entrepreneurship at Columbia Startup Lab, and David Ehrenberg, Founder and CEO of Early Growth Financial Services, coached and critiqued participants. I came away with these five pointers for startup founders. 1. Think long-term when it comes to your business plan. That means validating your assumptions with primary research and empirical evidence, including talking to other people in the industry as well as doing the work to develop customers. One of the biggest mistakes entrepreneurs make is to go through the work of creating a budget and forecast, then never look at them again. A …
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Startup Finance: What to Focus on Post Your Raise

In the very early-stages, your startup finance strategy may be pretty straightforward. You need to establish your accounting platform and systems, including accounts receivable and accounts payable. You are going to want to identify the best payroll and banking solution for your company. And you definitely want to give some thought to tax considerations. After you’ve received your first round of funding, that’s when your startup finance strategy needs to deepen. This is a necessity because your investors will expect accurate reporting, but it’s also an important step for startups to make to gain a deeper understanding of their own business. Here’s how to build out your finance function, post-funding: Hire a professional. Pre-funding, you may have been managing your finances yourself. Post-funding, it’s time to hire a professional to help you to manage your day-to-day finances as well as provide strategic financial insight. You probably won’t need a full-time …
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Fundraising 101 with EGFS Founder and CEO, David Ehrenberg

• Is it time for you to raise outside capital? • What are your best financing options? • How much should you raise? • What do you need to do to show investors you’re ready for their investment? In this presentation, David Ehrenberg, Founder and CEO of Early Growth Financial Services (EGFS), explores the facts—and fiction—of fundraising. You’ll learn about your fundraising options at every stage of development, the fundraising process, what investors want to see, crafting your financial models, your revenue projections, pitch deck essentials and more. If you’re in the process of trying to raise investment capital—or planning to go down that road—this is a “must see!” Takeaways include: – Your fundraising options at every stage of the development process – Milestone funding – What investors want to see – Crafting your financial projections – Expert pitching tips – Financial modeling – and more! Questions about fundraising? Let …
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3 Signs Your Financial Projections Are Off

One question everyone asks is what investors look for when deciding whether or not to fund a startup. Having a high-caliber team with a good track record and a clear value proposition are givens. But the bottom line is that it comes down to the numbers. VCs are looking to make investments that pay off big. That means you need to develop credible financial projections that demonstrate the viability and future potential of your target market and clearly spell out how investing in your business will achieve their return targets. But it’s not a question of just throwing something together. You need to really dig into your numbers and develop enough fluency to articulate and support your underlying assumptions. Here are three signs you’re on the wrong track. Financial Projections: The Red Flags 1. Your numbers don’t add up — VCs are interested in funding companies with large potential markets…enough …
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