Tech Companies Have Bookkeeping Problems

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Tech companies may automate things for us and make our lives a lot easier, but they overlook the necessity of bookkeeping. Sure, no one starts a business excited to manage their books, but it’s a key part of the process, and without it, you could have serious financial issues.

Why Bookkeeping Matters

You might wonder why bookkeeping must be at every business’s forefront. Let’s look at the company Fast, which shut down out of nowhere after raising over $100 million from investors. They went from superstar to bottom of the barrel in a whirlwind.

What it boils down to is running out of money. They were spending much faster than they were making it, but no one was the wiser because no one kept the books.

It’s a Common Problem

Whether failing companies tell the truth or not, the bottom line is always the same – nobody managed the bookkeeping.

This could mean they mixed business and personal funds, didn’t handle payroll correctly, avoiding filing taxes. Typically this isn’t because they didn’t want to pay taxes or do their books right. Instead, they didn’t know how to do it and didn’t look for outside help.

Many companies don’t realize their mistakes until they’re in over their head or they’re ready to go public. So they either close their doors or realize they need a CFO to clean up their books and get ready to go public.

It doesn’t have to be a problem, though. Using the right help from day one can clear up any misunderstandings, mistakes and use the right resources to keep on top of their books. Silicon Valley companies need to consider bookkeeping first instead of saving it for last.

Whether you’re in good shape or not, now’s the time to get the bookkeeping help you need to ensure your company stays on top.