EBCFO Tackles the Unique Accounting Issues of Startups

By June 16, 2016Members

EBCFO’s Dan Schmidt on accounting for startups

CEO Dan Schimidt started EBCFO to provide financial accounting services to startups in the region.

“Most, except for me, didn’t start a business to do accounting and finance,” said Schimidt. “They started a business to do something else.”

Schmidt sees several unique challenges that startups face, which distinguish them from the typical small business.

“Startups generally are net income positive much later in their life cycle than a traditional small business,” said Schmidt.

There’s a certain size at which a startup’s finances become unmanageable for a small team, and they reach out to EBCFO for help.

“That happens usually around $250,000 to $500,000 in revenue,” said Schmidt. “And what happens at that point is that the business gets complex enough that one person can’t really keep it in their head anymore.”

EBCFO help startups solve their financial challenges at every stage.

“The answer is never where you think it is initially,” said Schmidt. “There’s always some kind of underlying driver.”

Originally published on siliconprairienews.com

Special thanks to Jordan Green Productions and Silicon Prairie News.

 

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