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Startup Finance for Founders – Part I, Accounting (2016)
When we started Segment, we knew nothing about business finance. My background was in aerospace engineering, and my co-founders came from computer science and design.
As we grew, problems came up that weren’t covered there, like structuring bank accounts, dealing with lack of credit history, and how contracts and invoicing actually work. Ultimately I found we could get more reasonable limits by steering the conversation away from revenue, where high growth startups sound incredibly strange, and focusing instead on our cash balance, which was inflated by fundraising. Here’s an example invoice, which simply gets sent to the financial contact listed on the order form.This article covers some of the common practices we’ve learned in startup accounting.
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