In the beginning of the evolution of a startup, it is likely that the founder is in a “lone wolf scenario.” He or she is grinding away to get the business off the ground. As a result, the owner is wearing a lot of hats: CEO, CTO, marketing, HR, accounting manager. You name it and the founder probably has his or her hands in it. They are living in “keeping overhead low” land.
Awesome Accounting Advice:
At this stage all you care about is minimizing your cash burn while maximizing your product market fit. You should know how much cash you are burning each month and how many months of cash you have as a safety net. However, don’t forgo getting good financial and tax advice early or you will likely spend more time and energy fixing problems that could have easily been avoided.