Our Services Support Your Growing Company
To start, a cloud-based accounting system will be tailored to fit your business and then implemented. We also setup bank accounts and establish an electronic invoice approval system to minimize time spent on administrative functions.
From there, our team will process vendor invoices, reconcile bank accounts, send invoices to customers, and post payments received. On a monthly basis, financial statements will be produced for both management reporting and investor compliance.
There are basis budgeting guidelines that we follow and then there are more complex ways to budget. We assess your needs and find a balance between the two.
Each quarter we'll create a new projection based on our latest best estimate. In addition to the forecast, there are usually a number of scenarios that we model to clearly articulate how much investment is required to achieve each milestone.
Finally, founders to VC's spend a significant amount of time working on cap tables. We'll assist by modeling different pre-money and investment scenarios to drive strategic board level discussions.
We add value beyond the basic accounting function by modeling the effects of non-dilutive funding. There are dozens of terms to negotiate, from warrant percent and prepayment penalty, to tranche availability and interest only period. We work with many providers to achieve the most favorable terms for your company.
A sample of some of the lenders we work with.
Start-ups can issue founder shares and restricted stock units for a while but once they are ready to issue options, then a 409A valuation is required. Obtaining a 3rd party valuation of common stock is important for two reasons: first it will establish the strike price of the options granted and keep you complaint with the IRS and second, it will enable the accurate calculation of stock compensation expense to ensure your financial statements are GAAP compliant.
A valuation should be done before the first options are issued, and then should be performed every 12 months or when there's a material event that could reasonably be expected to affect the company's stock price. Events would include raising a new round of financing or reaching a major milestone.
Valuations aren't black and white because there are a lot of assumptions that are used so it's important that the final valuation is reasonable and defensible.
While not something most founders, entrepreneurs, and early-stage CEO's have the luxury to focus on, ignoring this area in the short-term will cause major issues in the long term.
There are a range of areas to address from managing risk by establishing different types of insurance polices and filing appropriate tax returns, to meeting grant reporting requirements and ensuring 401(k) compliance with the Department of Labor.
Tax minimization strategies fall under the Compliance umbrella and many start-ups are not aware that they may be eligible for up to a $250,000 tax credit. This credit is driven by a number of factors including domestic R&D spend and the credit is used to offset employer paid payroll taxes if a four-part test is passed. We work to ensure the maximum credit is achieved.
Understanding and managing the complex world of HR can be time consuming. We're here to guide you through starting up, managing your company benefits and 401(k) plan, to helping your company deliver a comprehensive package for your team. On boarding new hires and processing payroll is also within our area of expertise. Our payroll solution is comprehensive and covers tax remittance to annual W2 processing.