Tags: Accounting, Finances, Founders, Startups
Of late, have come across multiple early-stage startups making a basic accounting error. While digging their choppy monthly revenues, I realized these startups book revenues in the month cash was received, and not when the product/service was delivered. While this seems very tactical to founders early on, it’s important.
Examples – a SaaS startup charged & booked annual revenue upfront, while clients could cancel any month with refund.