This Week in Startups Five things you need to nail to scale with Scott Orn | Kruze Consulting Startup Finance Basics
Feb 5, 2021
Scott Orn, co-founder of Kruze Consulting, is a startup finance expert who shares invaluable insights for budding entrepreneurs. He highlights the crucial financial statements every startup needs and the importance of maintaining distinct business finances. Scott also discusses the benefits of selecting reliable accounting software like QuickBooks and explores essential payroll tools such as Gusto and Rippling. Additionally, he emphasizes the importance of cap table management and the potential pitfalls of poor financial practices, providing a practical checklist for success.
AI Snips
Chapters
Transcript
Episode notes
Financial Statement Essentials
- Start producing financial statements, including income statement, balance sheet, and cash flow statement, after receiving funding.
- These statements provide crucial insights into your startup's financial performance and burn rate.
Clean Bank Account
- Open a separate, clean bank account for your startup, avoiding commingling personal and business funds.
- This practice ensures financial clarity, prevents IRS issues, and maintains professional hygiene.
Credit Card and Salary Advice
- Secure business credit cards without personal guarantees to limit personal liability.
- Negotiate salary increases directly with the board instead of using company funds for personal expenses.