Friday, May 17, 2013
Insights and Opinions: The Important Financial Items Entrepreneurs Should Track
Story by David Ehrenberg
For our Insights and Opinions section today, we're sharing a primer on finances from David Ehrenberg, of Early Growth Financial Services, who gives entrepreneurs a rundown of some of the most important financial items to track.
Whether you're managing your own startup finances, or have an outside firm taking care of this for you, there are many financial items that entrepreneurs should closely track. Here are some of the key ones I recommend all early-stage startups keep a close eye on:
Cash flow/burn rate. Your burn rate is perhaps the most important financial item you need to track: how quickly are you going through your cash reserves, and how quickly are you building those reserves back up. In other words: revenue in minus expenses out. If you donít keep track of your burn rate, you could run out of cash before you even get your startup off the ground. (More...)
Read the rest of David's primer on financial tracking for startups, at The Most Important Financial Items Entrepreneurs Should Track.