Financial Statements

Amortization allows startups to spread the cost of intangible assets over their useful life. It aligns expenses with revenue and impacts how investors view your profitability.

Pro forma financials are projected statements based on assumptions. This guide explains their role in fundraising and planning, highlighting the difference between historical data and future modeling.

Accrual accounting records financial transactions when they are incurred rather than when money changes hands. It offers a more accurate view of startup performance than cash accounting.

Understand the difference between profit and cash, learn the three components of cash flow, and use this statement to accurately calculate your startup’s runway.

The general ledger is the master record of every financial transaction in your startup. It serves as the raw data source for all financial statements and reporting.

GAAP provides the rulebook for financial reporting. This guide explains its importance to startups, compares it to cash accounting, and identifies when founders should implement these standards.