Founder Foundations: Finance Systemization
Steve's Founder Foundations series turns to accounting systems: cash versus accrual, the surprise of phantom profit, and why founders eventually outgrow spreadsheets and basic bookkeeping tools.
Steve Simonson
On-air link:awesomers.com/281
Show notes
This installment of Founder Foundations covers the financial systems every founder needs, starting with the basics of cash versus accrual accounting.
Steve shares a personal story about learning the hard way what phantom profit means under accrual accounting, and explains why growing businesses eventually need a real double-entry, auditable system instead of a tool they can outgrow or manipulate.
A practical primer for founders setting up their books for the first time or wondering if it's time to upgrade.