Congratulations! You just started a brand new business. Maybe you’ve been a full-time employee most of your life and finally took the plunge into the wild world of entrepreneurship. Perhaps you’re a professional who decided to open up your own private practice. Or maybe you’re a serial entrepreneur whose job it is to plant [...]
The goal for every startup should be to acquire a large enough and reliable client or customer base in order to gain revenues and make sustainable profits in the long run. A startup can effectively get new clients through marketing campaigns designed to increase the appeal and the perceptions of the value of their [...]
Simply put, Gross Profit Margin is the percentage of revenue that turns into profit. It’s a simple calculation but a concept that’s easy to mix-up with other measures or to misuse. In this guide we’ll break down what Gross Profit Margin is, how it differs from other measures, and how you can use it [...]
Company strategies made using performance data can be the difference between success and failure, and this is particularly important for Software as a Service (SaaS) startups as these companies startups face unpredictable markets. Thus, it's crucial to analyze key metrics, such as Annual Recurring Revenue (ARR). Understanding ARR helps decision-makers to make better choices. While analyzing ARR [...]
As an entrepreneur or business owner, you’ve undoubtedly run into the term “cap table” before. In its most basic form, a cap table is a spreadsheet or table that shows the equity capitalization for your business. You most often find cap tables when dealing with startups and early-stage companies. It’s one of those “must-do” [...]
Customers, the source of profits for companies, have different profiles and their value to the business can vary according to different factors such as demographics, levels of income or the highest levels of education attained. For example, a gaming industry startup is more likely to gain more profits from wealthy millennials and their children, [...]
The first use case of a financial model comes during the funding phase, but its purpose goes far beyond raising money. From projecting future earnings to planning your overall path, your financial model is a critical part of your young company's foundation. The right model will consist of intelligent, reasonable projections and a comprehensive, dynamic [...]
If you’re working on building your startup or new company, the early days are absolutely vital. Your burn rate, or the rate at which your company is using its cash, is an important metric for both you and your investors. While important, your startup’s burn rate is not the ‘end-all’ of financial metrics. This [...]
Bank reconciliations are the first steps to complete when it comes to accounting for your business. It is crucial that all the cash on hand, money being received and payments going out are being accounted for in your books. Bank reconciliations are the core of bookkeeping services that accountants provide. Thankfully with the help [...]
Finding a quality tax preparation service in Chicago isn’t easy. If you’re interested in bringing on licensed professionals with niche-based expertise, Founder's CPA Group is the firm for you. With an emphasis on startups and small businesses, Founder's CPA Group can handle all your accounting needs. Do what you do best: grow your business. Let us handle [...]
