Key Events in the Financial Life of a Startup

Challenges Faced When Designing Financial Systems for Startups
  1. startups change and evolve quickly
  2. an overly complex system either won’t get used or won’t be used effectively
  3. lack of skilled staff to operate a system
  4. conflicting priorities
Key Events in the Life of a Startup that Effect Information Needs
  1. begin to develop a minimum viable product or service – tracking SR&ED projects, time / analytics re user (customer) experience
  2. begin to sell products – invoicing, collections and receivables
  3. hire regular (as opposed to founders or ‘specified’) employees – payroll records and remittances / holiday pay
  4. contract bookkeeping service – outsourced, after-the-fact bookkeeping
  5. start to groom themselves for investment – building business model, iterating with actual experience, investor-facing communication / elevator pitch, due diligence-ready
  6. hire a controller (or part-time CFO)

Of course every startup is different. In some cases each of these key events happens right at the start. For others the process is slower – and the order may be different.