How to Track Financial Performance as a Startup Company
When you are running a startup, it is crucial to have good tools in place that can track your company’s financial performance. The reason for this is that you are still operating on limited financial resources. Therefore, spending more than what you earn won’t sustain you long term.
This article discusses some simple tools that will help you understand how much money is coming in and going out. Continue reading to learn how to improve the financial performance of your startup company.
Understand Your Startup Finances
In the simplest way, you can just track expenses and income to see where you stand financially. In order to do this, you need a simple system that has all the important information. There are several tools online that can do this for you automatically, so you don’t have to do it manually.
Here are a few suggestions:
One of the most common tools used is Google Sheets. It’s simple to create an account and use the spreadsheet by adding rows for each new expense or income. The columns are fixed, you can add more if needed, but they will remain unchanged in size. If you start with a free account, you can only have up to 100 rows, which should be enough for most startups.
Cashboard is an online tool that allows users to create boards for tracking their finances by adding rows and columns. It has a simple design, similar to Google Sheets. With Cashboard, you can add expenses and income information easily. It also allows you to connect with your bank account to automatically import transactions.
The platform has a calendar view, where you can see how much money you have at any given date. You can also access it from anywhere because it’s online.
Mint is a free tool that automatically pulls your financial information from your bank and credit card accounts. It also has a simple design like Google Sheets and Cashboard, which makes it easy to add expenses and income for quick analysis.
It has a nice visualization that you can access from anywhere with just one click because of its online availability. However, Mint doesn’t have a calendar view.
Financial Metrics: Tracking Your Startup’s Finances
The above tools can help you easily track your startup company’s financial performance. It’s important to understand where you need to improve or focus more.
You can also check how much money has been brought in by sales or fundraising. Of course, they are the main sources of income for most startups.
If you don’t like the idea of tracking your company’s startup finances yourself, you can always hire professional accountants to help out.
It’s important to hire an accounting firm with the right expertise. For example, if you run a startup that has expanded into international markets, then you’ll need an accountant who is familiar with dealing with multi-currency transactions and conversions.
If you believe this is the best option for you, check out the Finvisor accounting team.
Track Financial Performance the Right Way
If you’re feeling a little lost when it comes to tracking your startup company’s financial performance, don’t worry. You can do it! The key is understanding which metrics to track and using the right tools.
We hope this article has helped give you a better idea of where to start. Be sure to check out our other content. Thanks a lot for reading!