◈ Homepage — https://kruzeconsulting.com/This website utilizes technologies such as cookies to enable essential site functionality, as well as for analytics, personalization, and targeted advertising. Privacy Policy Accept Deny Non-Essential Big Tax Changes for Startups! The new tax bill could impact your startup. What should you do next?  Read the Blog → Services Accounting & Bookkeeping Startup Accounting Maximize Your Startup’s Potential Startup Bookkeeping Services for High-Growth Startups Strategic Financial Accounting Strategic Accounting Boosts Your VC-Funded Startup’s Financial Future Tax Services Startup Tax Services Tax Services for VC-Backed Startups Startup Tax Returns Filing Tax Returns for VC-Backed Startups Delaware Franchise Tax Calculate Your Delaware Franchise Tax R&D Tax Credits R&D Tax Credits Unlock Your Startup’s R&D Tax Credit Potential R&D Tax Calculator How much can your startup save in payroll taxes? Advisory services Fractional CFO & Advisory VC Due Diligence Startup M&A Accounting Financial Modeling Services 409A Valuations Services Part-Time CFOs Services Pricing Company About Us Learn more about Kruze Consulting Partners Our partners are the best in the business Reviews See what our clients say about us Careers Join our team of startup accounting experts Announcements All press mentions, releases, and news Resources Early-Stage Tax Tips Do unprofitable companies need to file tax returns? Yes! Read our tips now. GUIDE TO SEED STAGE TAX RETURNS Knowledge base Startup Q&A Answers to hundreds of startup accounting, finance, HR and tax Q's Blog Expert startup accounting advice (and more) Case Studies See how we helped our clients save money and grow their businesses Top Financial Tips and Resources for Startups Startup Financial Health Tools Tips for setting up scaleable financial systems Free Financial Models Free to download financial models C-Corp Tax Deadlines iCals with federal, state and local compliance deadlines Best VC Pitch Decks See more of the best pitch decks ever used CEO Salary Report Data on what CEOs are paid Best Startup Credit Cards After working with hundreds of startups, we picked the best credit cards (415) 322-1610 CONTACT US SEARCH KRUZE CONSULTING: EXPERT ACCOUNTING FOR VC-FUNDED STARTUPS Kruze Consulting specializes in providing expert accounting and bookkeeping services tailored to the unique needs of VC-funded companies. Our accounting professionals understand the fast-paced and dynamic startup ecosystem, providing guidance on reporting, compliance, and strategic planning to ensure financial transparency and investor readiness. By partnering with us, startups can focus on growth while we help them successfully navigate the complex startup financial landscape. GET A FREE CONSULTATION KRUZE CONSULTING CLIENTS ARE TWICE AS LIKELY TO BE ACQUIRED AS THE AVERAGE STARTUP Kruze is committed to your success, and we can prove it. Data published by cap table management vendor Carta shows that 5.2% of startups incorporated in 2018 were acquired, while 11.5% of Kruze clients were acquired during the same period. VANESSA KRUZE, CPA FOUNDER AND CEO WHY PARTNER WITH KRUZE? Comprehensive Startup Solutions As the leading CPA and advisory firm for venture-backed startups, we specialize in guiding businesses from seed funding to growth stages. By integrating accounting, finance, and fractional CFO services into a single solution, we enable companies to make informed financial decisions and drive exceptional results. Financial Transparency You need a clear view of your startup’s financial health, and Kruze Consulting provides accurate and timely financial statements. This helps your strategic planning and gives your investors confidence. Strategic Support Our strategic financial guidance helps you budget and forecast efficiently and effectively, so you meet your milestones and growth objectives. Tax and Regulatory Compliance Your startup needs to stay compliant with all its financial and tax obligations, both to avoid costly mistakes and penalties and to help with your fundraising. Hands-On Partner with Technology-Enabled Support Our clients benefit from a “hands-on partnership” approach that prioritizes readiness for acquisitions, equipping them to navigate the complexities of due diligence, compliance, and strategic exits combined with active leveraging of technology. CONTACT US FOR A FREE CONSULTATION Kruze Consulting specializes in startup accounting, relying on experienced accounting, tax, and finance professionals, using best-in-breed financial tools and systems. GET IN TOUCH WHAT SERVICES DOES KRUZE CONSULTING PROVIDE? Accounting & Bookkeeping Services Kruze uses cutting-edge technology to keep your financial records accurate and up-to-date. Our team prepares essential financial statements to help you make decisions and keep your investors informed. Startup Tax Services Our comprehensive tax services keep your startup tax-efficient and compliant. We handle income tax preparation along with state and local taxes (SALT). We make sure you maximize every tax credit, deduction, and incentive, and we provide strategic tax planning to support your long-term growth. R&D Tax Credit Services Our research and development (R&D) tax credit services help your startup claim valuable credits for your R&D expenses. We’ll guide you through the process of identifying eligible expenses, calculating credits, and filing your reports with the IRS. Your startup can significantly extend your runway by offsetting payroll taxes. Fractional CFO Services Get strategic financial leadership without hiring a full-time CFO by relying on our fractional CFOs. We offer financial modeling, budgeting, cash management guidance, and fundraising support to position your startup for growth. We’ll help you navigate complex financial decisions and optimize your financial operations. Case Study SNAPATTACK Discover how SnapAttack, a cybersecurity leader, achieved acquisition by Cisco with Kruze Consulting’s expert support. EXPLORE THE CASE STUDY "Kruze applied a more rigorous, repeatable, and timely approach to our accounting at a better cost than our previous outsourced accounting firm." Clayton Barlow-Wilcox Chief Operating Officer SnapAttack FREQUENTLY ASKED QUESTIONS What key accounting challenges do VC-funded startups face? Startups often have issues maintaining accurate financial records, managing tax obligations and compliance, and setting up financial operations. Kruze’s accounting and bookkeeping services help our clients meet those challenges. How important is financial transparency for VC-funded startups? Accurate financial reporting demonstrates your startup’s fiscal responsibility and commitment to corporate stability. A solid accounting process helps founders manage their companies, build trust with investors, and respond quickly and accurately to due diligence requirements. Can startups claim R&D tax credits even if they’re not profitable? Yes, even unprofitable startups can use R&D tax credits to offset payroll taxes, which improves their burn rates and extends runway. Why should startups outsource accounting? Using outsourced accounting services gives startups access to top-notch financial expertise while keeping costs low. With Kruze on board, founders can focus on their core businesses. More mature startups can rely on our fractional CFO services, which help keep your financial operations running smoothly. CONTACT US FOR A FREE CONSULTATION Kruze Consulting specializes in startup accounting, relying on experienced accounting, tax, and finance professionals, using best-in-breed financial tools and systems. GET IN TOUCH READY TO CONNECT FOR A FREE CONSULTATION? We are the experts at helping seed/VC-backed Delaware C-Corps with their accounting and finances! Talk to an experienced accountant, not a generic sales person Will Martin $250M+ VC Funding Raised "I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup's books and finances. If you are going to raise venture capital, you need experts like Kruze." CHRIS MANSI CEO Startup Venture Capital Assistance With former venture capitalists on staff, our team is here to help you navigate the fundraising process and manage your board of directors Vanessa Kruze Founder & CEO, CPA Scale Remote Operations & Team "Kruze has supported us above and beyond basic accounting needs by ensuring we have everything we need to expand and support our team wherever they may be located" ZACK FISCH Head of Operations & Legal Clients who have worked with Kruze have collectively raised over $15 billion in VC funding. We set startups up for fundrising success, and know how to work with the top VCs. Vanessa Kruze, CPA Founder & CEO Experienced team helping you Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience. Bill Hollowsky, CPA VP of Accounting Services Claudine Vantomme, CPA Controller Morgan Avery SUT/R&D Sr. Tax Accountant Beth Bassler Controller, CPA Grew from a 2-person startup to a NASDAQ listed public company. "The Kruze team helped us grow from a 2-person startup to a NASDAQ listed public company in 2 years. We wouldn't have gotten public without Kruze's support. Anyone thinking of launching a startup should make Vanessa their first call!" JESSE SHEFFERMAN CEO GET IN TOUCH Please help us connect with you Full name Company name NEXT   How can we reach you? Our first response is typically via email, so please check your inbox. Phone number Email I agree to receive marketing emails from Kruze Consulting By clicking Next, you consent to receive automated messages from Kruze Consulting. Reply STOP to opt out. Terms of Service | Privacy Policy. NEXT PREVIOUS Help us have a productive first consultation by providing some additional information. What year was your startup incorporated? (please enter YYYY such as 2026 - an estimate is fine!) YYYY 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 NEXT PREVIOUS What is your stage of funding? (pick up from the list) Stage of funding Select Stage Pre-Seed Seed Series A Series B Series C+ Not VC-Backed NEXT PREVIOUS Approximately how much funding have you raised? (e.g., enter 5000000 for $5 million) Total funding raised NEXT PREVIOUS Help us understand what you are looking for: (Optional, click the ones you need) Monthly Accounting / Bookkeeping Tax Help CFO Advice 409A Valuations Financial Technology Stack Setup Other SUBMIT KRUZE CONSULTING Kruze Consulting is a licensed CPA firm; California Board of Accountancy license number 7637 7 Years Straight – Inc. 5000 Fastest Growing Companies. Team Pricing Careers Kruze News Reviews Contact Us Security Privacy Policy Terms of Service Copyright © Kruze Consulting 2026 We may monetize some of our links through affiliate advertising. At any moment, executives or team members may own public or private stock in any of the third party companies we mention. 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What should you do next?  Read the Blog → (415) 322-1610 Contact Us Services Accounting & Bookkeeping Startup Accounting Maximize Your Startup’s Potential Startup Bookkeeping Services for High-Growth Startups Strategic Financial Accounting Strategic Accounting Boosts Your VC-Funded Startup’s Financial Future Tax Services Startup Tax Services Tax Services for VC-Backed Startups Startup Tax Returns Filing Tax Returns for VC-Backed Startups Delaware Franchise Tax Calculate Your Delaware Franchise Tax R&D Tax Credits R&D Tax Credits Unlock Your Startup’s R&D Tax Credit Potential R&D Tax Calculator How much can your startup save in payroll taxes? Advisory services Fractional CFO & Advisory VC Due Diligence Startup M&A Accounting Financial Modeling Services 409A Valuations Services Part-Time CFOs Services Pricing Company About Us Learn more about Kruze Consulting Partners Our partners are the best in the business Reviews See what our clients say about us Careers Join our team of startup accounting experts Announcements All press mentions, releases, and news Resources Early-Stage Tax Tips Do unprofitable companies need to file tax returns? Yes! Read our tips now. Guide to Seed Stage Tax Returns Knowledge base Startup Q&A Answers to hundreds of startup accounting, finance, HR and tax Q's Blog Expert startup accounting advice (and more) Case Studies See how we helped our clients save money and grow their businesses Top Financial Tips and Resources for Startups Startup Financial Health Tools Tips for setting up scaleable financial systems Free Financial Models Free to download financial models C-Corp Tax Deadlines iCals with federal, state and local compliance deadlines Best VC Pitch Decks See more of the best pitch decks ever used CEO Salary Report Data on what CEOs are paid Best Startup Credit Cards After working with hundreds of startups, we picked the best credit cards (415) 322-1610 Contact Us Search Home Blog Cash Burn Rate Calculator & Startup Runway Formulas | Kruze Consulting Calculate your cash burn rate by Kruze Consulting Last updated: August 30, 2024 Published: September 22, 2022 Use our cash burn rate calculator to measure your startup’s recent cash burn rate and estimated cash runway. To use the calculator, you’ll need your company’s cash position for the past 3 months and the amount of capital you’ve raised over the past several months. Or, scroll down to learn about the two most common burn rate formulas. Input your company cash positions from the previous three months to calculate your burn rate and cash runway. --> Month Cash Balance Funding Raised -- January February March April May June July August September October November December Average Burn Rate Projected Months of Runway 🔄 Reset Calculate What is burn rate? Burn rate measures how much cash a startup loses over a given time period, and is typically measured as the dollars decreased over a month. Because venture capital backed companies usually operate at a loss and rely on VC funding to support their operations, burn rate is a metric closely tracked by experienced founders and investors. This number, calculated on a monthly basis, is the primary input that goes into the formula to calculate a startup’s zero cash / cash out date / runway . In general, this metric is a negative number (as in most startup’s have their bank account go down every month), but it’s often expressed without a negative sign (“-”) or parentheses. If your startup is actually generating positive cash flow every month from operations, make sure you adequately disclose this to investors and other players in the startup ecosystem! Since most VC backed startups lose money, you will be in a unique minority position that many investors won’t instinctively expect. How to calculate burn rate A startup’s burn rate is effectively the amount of money it is spending in excess of its revenue every month. There are a couple of different ways to calculate burn rate. The easiest method is to take the average decrease in the company’s cash position over the past several months – exclusive of any financing events. For example, if a company had $300,000 in the bank, then $275,000 the next month, then $250,00 the last month, then the metric would be $25,000 a month.  Don’t forget to include other, non-checking account balances. Your payment processor, a money market account, a saving account, etc. all likely contain dollars that should be included in the analysis. Burn rate and cash from financing One question we get from founders is if the funds they raise from venture capitalists should be included in the burn rate calculation – in particular, if the cash flow from the dollars raised decreases the company’s burn. Cash from Financing isn’t typically included in the burn rate calculation since this represents incoming funds from investors, loans or lines of credit, and not the money being spent by the business in its regular operations and investments. The business’s ability to attract financing is a separate matter from its operational efficiency and control over expenses, which is what the cash burn rate seeks to measure. If the startup is going to raise the same amount of financing every month for the foreseeable future, then you could make the case for changing the burn rate that goes into the average cash burn, but that’s not typical for most startups. Two ways to calculate cash burn rate – the two formulas Let’s dive into the two ways experienced CFOs use to understand burn rate. The income statement method One method of calculating burn rate uses a startup’s income statement . Income statements show a company’s income and expenditures, and follows a formula: Net Income = (Revenue + Gains) – (Expenses + Losses). Normally your startup accountant sends you an income statement every month, so one way to determine the metric every month is to just look at the net income on your income statement – and that’s conceptually how much your bank account balance should be decreasing every month. However, your income statement will also include things that are accrued, as well as items that are capitalized. Accrual accounting recognizes revenue when it’s earned and records expenses when they are incurred, rather than when money changes hands. So a SaaS company that signs a 1-year, $60,000 contract to provide services for a year would recognize $5,000 each month, even if the customer paid the full $60,000 at the beginning of the year. A startup that invests heavily in equipment will capitalize those expenses, and expense the cost over the useful life of the equipment, even though the startup paid for the equipment in full. So the income statement doesn’t necessarily show how much actual cash the startup has at a particular moment. Income Statement Burn Rate Formula Net Income Burn Rate = (Revenue + Gains) – (Expenses + Losses) Thus, you’d calculate your runway from this method by dividing your cash balance by the results from the above formula.  The cash flow method Calculating a cash burn rate using a startup’s cash flow statement gives a different picture, and at Kruze Consulting we calculate our clients’ metrics both ways. The cash flow statement shows the actual amount of money that  is entering and leaving your startup in a given period, and shows you how much cash your startup has on hand at a given time. Typically startups have a negative cash flow because they don’t make money in their early years. The negative total from the cash flow statement is how much money the startup is spending each month.  One easy way to calculate cash burn using the cash flow method is to take the ending bank balance from the prior month and to subtract it from the ending position of the current. This formula will yield the cash burn for the mont Startup Accounting Near Austin Texas Big Tax Changes for Startups! The new tax bill could impact your startup. What should you do next?  Read the Blog → (415) 322-1610 Contact Us Services Accounting & Bookkeeping Startup Accounting Maximize Your Startup’s Potential Startup Bookkeeping Services for High-Growth Startups Strategic Financial Accounting Strategic Accounting Boosts Your VC-Funded Startup’s Financial Future Tax Services Startup Tax Services Tax Services for VC-Backed Startups Startup Tax Returns Filing Tax Returns for VC-Backed Startups Delaware Franchise Tax Calculate Your Delaware Franchise Tax R&D Tax Credits R&D Tax Credits Unlock Your Startup’s R&D Tax Credit Potential R&D Tax Calculator How much can your startup save in payroll taxes? Advisory services Fractional CFO & Advisory VC Due Diligence Startup M&A Accounting Financial Modeling Services 409A Valuations Services Part-Time CFOs Services Pricing Company About Us Learn more about Kruze Consulting Partners Our partners are the best in the business Reviews See what our clients say about us Careers Join our team of startup accounting experts Announcements All press mentions, releases, and news Resources Early-Stage Tax Tips Do unprofitable companies need to file tax returns? Yes! Read our tips now. Guide to Seed Stage Tax Returns Knowledge base Startup Q&A Answers to hundreds of startup accounting, finance, HR and tax Q's Blog Expert startup accounting advice (and more) Case Studies See how we helped our clients save money and grow their businesses Top Financial Tips and Resources for Startups Startup Financial Health Tools Tips for setting up scaleable financial systems Free Financial Models Free to download financial models C-Corp Tax Deadlines iCals with federal, state and local compliance deadlines Best VC Pitch Decks See more of the best pitch decks ever used CEO Salary Report Data on what CEOs are paid Best Startup Credit Cards After working with hundreds of startups, we picked the best credit cards (415) 322-1610 Contact Us Search Kruze Startup Accounting & Tax Specialists Near Austin TX Contact Us Contact Us Kruze Consulting handles all things Accounting, Finance, HR and Tax for over 800 startups. Vanessa Kruze, CPA Founder and CEO Kruze Consulting has provided accounting and financial services for 800+ fast-growing Seed, Series A, and Series B companies in Austin, California, New York, and beyond. Our clients have raised seed and venture funding from some of the best venture capital funds in the world, including ones based in Texas and Austin (as well as Silicon Valley). Vanessa Kruze, Founder & CEO, is an expert CPA, Deloitte Tax alumni, and former Controller of a fast-growing, funded startup. She leads the firm’s efforts in delivering high-quality bookkeeping services and tax advice. Interim CFO and outsourced CFO services Bookkeeping Services Startup Annual Taxes - federal and Texas R&D tax credits Payroll and payroll taxes Human Resources system setup and management Financial Modeling and Reporting, including budgeting and projections for capital raising 409A Valuations Early-stage companies in Austin deserve the same level of accounting advice as startups in Silicon Valley and NYC. Get prepared for your next VC round and have your accounting and finance reports ready. Learn why Kruze Consulting has been named as one of the Fastest-Growing Private Companies in the Inc 5000 list - and why Our clients have raised over $10 billion in VC funding! Talk to us now.  We have now offices in San Francisco and Silicon Valley, Santa Monica and Los Angeles, New York, and Austin. Some of our Austin Team in Action We are lucky to have some amazing accountants in Austin, including members of our Onboarding Team and Accounting Services Team. The Austin area is a great place to be an accountant, and if you are interested in working for Kruze, visit our careers page . Why is Kruze one of the top startup accountants Near Austin? Because Austin is one of the top startup centers in the world - and Kruze is one of the leading accounting firms to VC-backed startups in the United States. Kruze’s team is highly experienced helping seed and VC-backed companies navigate Texas and Austin level tax and compliance issues. With CPAs and accountants in Austin, Texas and Silicon Valley, we’ve got the expertise your startup needs to get ready for that next round of VC funding or big M&A exit. Kruze Consulting’s clients benefit from being set up on best-in-class automated fintech and accounting systems, and we’ve won awards for our innovative use of both in-house and third-party technology. A new set of tools that our team is using with clients in Austin and beyond are AI tools that help make our accounting faster. Our expertise has been recognized by major publications, with The New York Times, The Information, and Newcomer citing our research and opinions on artificial intelligence. As PitchBook reported, Austin continues to grow as a center for venture capital funded startups, which is why Kruze has aggressively expanded in Austin and throughout Texas. With bigger and bigger levels of capital raised at increasingly richer valuations, the Austin startup scene needs high-touch, highly-responsive accountants like the team at Kruze.   2026  Austin Tax Compliance Calendar Concerned about your 2026 Tax Deadlines? We've done the work for you with these 2026 Tax Compliance Calendars. Austin Upcoming Austin deadlines in 2026 1778786113 --> 15 May 2 tax events Travis Central Appraisal District Business Personal Property Rendition last day to file property tax protests. Texas Franchise Tax Forms 05-158 , Public Information Report Form 05-102 , Ownership Information Report Form 05-167 , and Research & Development Activities Credits Schedule Form 05-178 due. (May be extended to January 31.) 01 June 1 tax event Delaware Quarterly Estimated Franchise Tax . Pay 40% of estimated annual amount (if annual amount expected to exceed $5,000). 16 June 1 tax event Federal Quarterly Estimated Tax 2nd installment (second quarter 2026). 31 July 1 tax event Claim Research & Development Tax Credits on Form 941 . 01 September 1 tax event Delaware Quarterly Estimated Franchise Tax . Pay 20% of your estimated annual amount (if annual amount expected to exceed $5,000). 15 September 1 tax event Federal Quarterly Estimated Tax 3rd installment (third quarter 2026). 15 October 1 tax event C Corp Form 1120 Tax Return final due date for Austin startups if extension was filed. 02 November 1 tax event Claim your Research & Development Tax Credits on Form 941 . 16 November 1 tax event Texas Franchise Tax Forms 05-158 , Public Information Report Form 05-102 , Ownership Information Report Form 05-167 , and Research & Development Activities Credits Schedule Form 05-178 final due date if extension was filed. 01 December 1 tax event Delaware Quarterly Estimated Franchise Tax , Pay 20% of estimated annual amount (if annual amount expected to exceed $5,000). 15 January 1 tax event Federal Quarterly Estimated Tax 4th installment (fourth quarter 2026). Our Services Bookkeeping Interim CFO Human Resources Financial Modeling Tax Audit Best Practices Reg CF Review Practices R&D Tax Credits 409A Valuation Technology Partners Kruze Accounting, Finance, Tax & HR for Startups READY TO CONNECT FOR A FREE CONSULTATION? We are the experts at helping seed/VC-backed Delaware C-Corps with their accounting and finances! Talk to an experienced accountant, not a generic sales person Will Martin $250M+ VC Funding Raised "I had a great experience working with Kruze Consulting when we raised Series A. They know what VCs need to see, and how to present a startup's books and finances. If you are going to raise venture capital, you need experts like Kruze." Chris Mansi CEO Startup Venture Capital Assistance With former venture capitalists on staff, our team is here to help you navig eCommerce Accounting Big Tax Changes for Startups! The new tax bill could impact your startup. What should you do next?  Read the Blog → (415) 322-1610 Contact Us Services Accounting & Bookkeeping Startup Accounting Maximize Your Startup’s Potential Startup Bookkeeping Services for High-Growth Startups Strategic Financial Accounting Strategic Accounting Boosts Your VC-Funded Startup’s Financial Future Tax Services Startup Tax Services Tax Services for VC-Backed Startups Startup Tax Returns Filing Tax Returns for VC-Backed Startups Delaware Franchise Tax Calculate Your Delaware Franchise Tax R&D Tax Credits R&D Tax Credits Unlock Your Startup’s R&D Tax Credit Potential R&D Tax Calculator How much can your startup save in payroll taxes? Advisory services Fractional CFO & Advisory VC Due Diligence Startup M&A Accounting Financial Modeling Services 409A Valuations Services Part-Time CFOs Services Pricing Company About Us Learn more about Kruze Consulting Partners Our partners are the best in the business Reviews See what our clients say about us Careers Join our team of startup accounting experts Announcements All press mentions, releases, and news Resources Early-Stage Tax Tips Do unprofitable companies need to file tax returns? Yes! Read our tips now. Guide to Seed Stage Tax Returns Knowledge base Startup Q&A Answers to hundreds of startup accounting, finance, HR and tax Q's Blog Expert startup accounting advice (and more) Case Studies See how we helped our clients save money and grow their businesses Top Financial Tips and Resources for Startups Startup Financial Health Tools Tips for setting up scaleable financial systems Free Financial Models Free to download financial models C-Corp Tax Deadlines iCals with federal, state and local compliance deadlines Best VC Pitch Decks See more of the best pitch decks ever used CEO Salary Report Data on what CEOs are paid Best Startup Credit Cards After working with hundreds of startups, we picked the best credit cards (415) 322-1610 Contact Us Search Home Blog eCommerce Accounting Work With An Expert Ecommerce Team by Kruze Consulting Last updated: September 16, 2024 Published: July 26, 2022 Why Does Good Accounting Matter For Ecommerce Companies? Of all the online business models, eCommerce is perhaps the most complicated. From inventory management to understanding the relationship between marketing spend and shopping cart size, eCommerce business founders have a ton on their plates. And the numbers behind the business are critically important, helping founders avoid cash crunches, unwanted excess inventory, unexpected return ratios and more. Here are some of the reasons an eCommerce business needs great accounting: The right numbers help founders understand how the business is doing financially Executives make better decisions when they use credible data Projecting working capital changes helps keep the business from going “upside down” - even profitable companies can go bankrupt if the timing of their cash flows are incorrectly managed! Sales taxes and state and federal taxes require correct numbers Simple Startup Projection Model Simple and easy to use financial model for technology startups looking to project revenue and expenses. Free to download Simple Startup Projection Model Download our Simple Startup Projection Model template now by entering your email below. Click to download Email I agree to receive marketing emails from Kruze Consulting Comments   Submit × Depreciation Schedule Straight-line, Sum-of-Years and Declining Value - all in the same model. Free to download Depreciation Schedule Download our Depreciation Schedule template now by entering your email below. Click to download Email I agree to receive marketing emails from Kruze Consulting Comments   Submit × Startup Budget Template Designed for a startup with multiple departments; use to budget for hiring and non-FTE spend. Free to download Startup Budget Template Download our Startup Budget Template template now by entering your email below. Click to download Email I agree to receive marketing emails from Kruze Consulting Comments   Submit × SaaS Income Projection Model This is as user-friendly and adaptable as possible to suit most SaaS businesses. Free to download SaaS Income Projection Model Download our SaaS Income Projection Model template now by entering your email below. Click to download Email I agree to receive marketing emails from Kruze Consulting Comments   Submit × Employee Stock Options - VC Negotiation Model This startup financial model is used to negotiate the size of the option pool needed at a venture round. Free to download Employee Stock Options - VC Negotiation Model Download our Employee Stock Options - VC Negotiation Model template now by entering your email below. Click to download Email I agree to receive marketing emails from Kruze Consulting Comments   Submit × When Does A Funded Startup Need To Start Worrying About Doing Bookkeeping? If you haven’t been keeping track of your books by the time you raise your first outside money, you  need  to get your books in order. We generally recommend that businesses move away from spreadsheets and into an accounting software as soon as possible. Day one you start the company and start a bank account. Connect that bank account to QuickBooks. Start getting the bank feed going into QuickBooks and actually characterize the transactions inside of QuickBooks. What Financial Statements Do Ecommerce Companies Need? We recommend that eCommerce companies produce three major financial statements - every month. These are the Income Statement, Cash Flow Statement and Balance Sheet. And the numbers behind the business are critically important, helping founders avoid cash crunches, unwanted excess inventory, unexpected return ratios and more. The income statement shows the company’s: Revenue Cost of Goods Sold (COGS or COS) Gross Profit (Revenue - COGS) Operating Expenses Net Profit The cash flow statement shows the company’s: Changes in Inventory Other working capital changes (like changes in payables) Operating income Investments in equipment Capital raises and loan paydowns Net cash flow / change in cash position The balance sheet shows: Assets Cash Inventory Accounts Receivable Other assets like equipment, buildings, etc. Liabilities Accounts Payable Sales Tax Credit Card liabilities Loans Equity Invested equity Retained earnings   5 Things That Make Ecommerce Accounting Difficult Sales tax Inventory Start Gross vs net revenue and accounting for returns Start Understanding gross profit - fulfillment, shipping costs; other costs by 3rd party manufactures or fulfillment; tying inventory to sales to understand COGS; customer service costs Start High transaction volume can make doing accounting difficult and complex Start BONUS: Advertising costs and ROI on investments What To Look For In An Ecommerce Accountant Startup, early-stage and fast growth eCommerce businesses need more than just a “bot” bookkeeper - they need a real accountant who understands their working capital needs and growth plans. High-growth online retailers and DTC companies often have thousands of transactions. Little errors can grow into big problems if not caught early. And just because an accountant has experience with other tech business models like SaaS or Biotech does NOT mean that they are ready to handle eCommerce. Kruze’s accounting and bookkeeping team combines experienced eCommerce accountants with industry leading - and custom built - accounting software. Kruze’s team automates everything that makes sense, but each of our clients gets an experienced, US-based accountant to look over the financials every month and catch any issues as they arise. Kruze Consulting leads the way in technological innovation, offering clients the most advanced automated fintech and accounting tools. By leveraging artificial intelligence, we enhance proce