For new startups and their founders, managing the accounting for their business can be an intimidating, and seemingly daunting task. Even some of the most basic aspects of accounting, such as bookkeeping, can get complicated. It is important for startups to keep their financial records in pristine condition, as having clean financials serve a multitude of purposes. Having properly prepared financial statements allows for regularly updating your stakeholders (i.e. investors, management, creditors) on your current financial position. In addition, it is crucial for a smooth tax filing season, and will help make sure you’re maximizing your tax deductions for year end. Finally, having well organized financial statements allows for powerful internal analysis, such as calculating burn rate and runway for your startup. Despite the importance of bookkeeping for startups, it still remains one of the most common issues that I’ve helped startups with over the years. To help understand the importance of bookkeeping for startups, lets examine what bookkeeping is, why it’s important, what some of the different options are for bookkeeping, how to set it up, whether or not to outsource your bookkeeping to a professional, and some best practices if you decide to DIY.