Complete slides from the December 9, 2014 webinar: Financial Basics for Startups: How to Think Like a CFO. Reviews top accounting apps for startups and small businesses as well as the benefits of outsourced controllers.

1. Financial
Basics
for
Startups
How
to
Think
Like
a
CFO
“Get
Virtual
–
Get
Organized
–
Get
Started”
Tuesday,
December
9,
2014
Presented
by:
Irene
Klepp
Virtual
Controller
for
Startups

2. About
SecureDocs,
Inc.
• SecureDocs
is
a
virtual
data
room
for
sharing
and
storing
sensiFve
documents
both
internally
and
with
outside
parFes.
Company
Basics:
• Developed
by
the
team
that
created
and
launched
GoToMyPC
and
GoToMeeMng
• Web-­‐based
business
soPware
for
financial
and
legal
professionals
• DisMnguished
through
it’s
ease-­‐of-­‐use,
industry-­‐leading
security,
and
flat-­‐
fee
pricing

3. Irene
Klepp
Outsourced
Controller
for
Startups
• Over
20
years
experience
in
Finance
and
AccounMng
• Medical
Devices,
IT/MSP,
SoPware
and
Wireless
Industries
• QuickBooks
CerMfied,
Consultant,
Trainer
We
help
our
clients
stay
“lean”
using
virtual
accoun5ng
as
they
grow.
3

4. Agenda
• Why
Startup
AccounMng
Ma]ers
• Financial
Statement
“Tune-­‐Up”
• Top
5
AccounMng
Apps
for
Startups
• Outsourced
AccounMng
–
OpMons
and
Timing
4

5. Why
Startup
AccounMng
Ma]ers
• Investors
and
lenders
require
financials
• To
measure
actual
results
to
your
forecast
• To
claim
eligible
tax
credits
and
file
on
Mme
• To
benchmark
you
vs.
the
compeMMon
5

6. 11:48 AM
12/15/18
Accrual Basis
ABC Manufacturing, Inc.
Profit & Loss
January through December 2018
Jan - Dec 18
Ordinary Income/Expense
Income
Deposits 10,000.00
Product 1 Sales 468,606.46
Product 2 Sales 17,920.00
Total Income 496,526.46
Cost of Goods Sold
Cost of Goods Sold 225,129.46
Freight 687.28
Labor-Installation 20,512.26
Materials 42,055.74
Scrap 924.17
Total COGS 289,308.91
Gross Profit 207,217.55
Expense
Advertising Expense 3,180.00
Car/Truck Expense 1,009.87
Conferences and Seminars 5,375.00
Depreciation Expense 923.04
Dues and Subscriptions 3,430.23
Insurance 28,451.64
Maintenance/Janitorial 1,184.97
Meals and Entertainment 376.35
Office Equipment 2,465.00
Postage and Delivery 1,119.35
Professional Fees 12,016.80
Rent 8,005.00
Supplies 3,398.59
Telephone 3,003.44
Travel 1,952.23
Wages 165,399.64
Total Expense 241,291.15
Net Ordinary Income -34,073.60
Other Income/Expense
Other Expense
Other Expense 2,236.18
Total Other Expense 2,236.18
Net Other Income -2,236.18
Move Customer Deposits to
the Balance Sheet until
Product/Service delivered.
Good: Matching COGS to
Revenue same period.
Separate Fixed Costs from
Variable Costs to determine
Break Even. Insurance,
Rent, Wages = Fixed Fees.
Allocate to Expenses above.
Avoid $ in "Misc" or
"Uncategorized accounts.
Page 1 of 2

7. 11:48 AM
12/15/18
Accrual Basis
ABC Manufacturing, Inc.
Profit & Loss
Ja Jn a- nDueca r1y8 through December 2018
Net Income -36,309.78
Financial statements included above do not represent tax guidance.
Statements are for demo purposes only and are not intended for benchmarking
or competitive analysis.
Page 2 of 2

8. 12:03 PM
12/15/18
Accrual Basis
ABC Manufacturing, Inc.
Balance Sheet
As of December 31, 2018
Dec 31, 18
ASSETS
Current Assets
Checking/Savings
Company Checking Account 12,649.10
Company Savings Account 13,153.00
Total Checking/Savings 25,802.10
Accounts Receivable
Accounts Receivable 93,751.90
Total Accounts Receivable 93,751.90
Other Current Assets
Inventory
Finished Goods Inventory -20,478.61
Materials Inventory 135,560.69
Work in Progress 39,671.57
Total Inventory 154,753.65
Security Deposit 1,000.00
Undeposited Funds 19,000.00
Total Other Current Assets 174,753.65
Total Current Assets 294,307.65
Fixed Assets
Accumulated Depreciation -923.04
Automobiles & Trucks 15,963.45
Machinery & Equipment 30,000.00
Office Equipment and Furniture 7,736.32
Tooling 11,000.00
Total Fixed Assets 63,776.73
TOTAL ASSETS 358,084.38
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable 91,418.13
Total Accounts Payable 91,418.13
Credit Cards
Corporate Credit Card -9,342.74
Total Credit Cards -9,342.74
Other Current Liabilities
Line of Credit 3,738.85
Bank accounts should be
reconciled each month.
Inventory not reconciled to
Physical Counts.
Payments not deposited at
bank.
Credit card charges not
recorded. Net Income
overstated.
All loans should be
reconciled each month.
Page 1 of 2

9. 12:03 PM
12/15/18
Accrual Basis
ABC Manufacturing, Inc.
Balance Sheet
Dec 31, 18 As of December 31, 2018
Payroll Liabilities
401K Payable 100.00
Payroll Taxes Payable 1,206.44
Total Payroll Liabilities 1,306.44
Total Other Current Liabilities 5,045.29
Total Current Liabilities 87,120.68
Total Liabilities 87,120.68
Equity
Retained Earnings 307,273.42
Net Income -36,309.72
Total Equity 270,963.70
TOTAL LIABILITIES & EQUITY 358,084.38
Investor Contributions if
applicable, captured here.
Financial statements included above do not represent tax guidance. Statements are for
demo purposes only and are not intended for benchmarking or
competitive analysis.
Page 2 of 2

10. Why
Startup
AccounMng
Ma]ers
• Consequences
of
unorganized
data:
• PotenMal
delays
in
funding
• Can
hurt
investor
confidence
• Loss
of
eligible
tax
credits
• PenalMes
and
interest
for
late
tax
filings
• No
accountability
for
cash
management
6

11. Top
5
AccounMng
Apps
for
Startups
1. QuickBooks
• Desktop
(your
server
or
Trapp
Online,
UniData,
Cloud
9,
etc.)
• Robust
soPware,
job
cosMng,
industry-­‐specific
versions
• Quickbooks
Online
• Good
basic
funcMonality,
growing
list
of
3rd
party
apps
for
Inventory,
E-­‐Commerce
and
Field
Service
Management.
7

12. Top
5
AccounMng
Apps
for
Startups
2. Online
Banking
• Use
“Bank
Feeds”
within
QuickBooks
to
import
daily
bank
transacMons.
• Reduce
keystrokes
and
data
entry.
• Get
to
your
financials
quicker.
8

13. Top
5
AccounMng
Apps
for
Startups
3. Bill.com
• Outsource
Your
Accounts
Payable
• Your
Admin
posts
vendor
bills,
you
approve
from
your
smartphone.
Bill.com
sends
payment
and
updates
your
QuickBooks
file.
• Case
Study:
Our
client,
a
Managed
Services
Provider
in
AZ.
Prior
to
Bill.com,
required
a
part-­‐Mme
Admin
in
office
to
open
mail,
post
bills,
write
checks,
reconcile
accounts.
We
moved
A/P
to
Bill.com;
CEO
now
approves
bills
via
his
iPhone
while
traveling.
No
more
checks
to
write.
Saved
labor
cost
and
improved
cash
flow
management.
9

14. Top
5
AccounMng
Apps
for
Startups
4. Intuit
Payment
Network
(IPN)
• Create
your
invoices
in
QuickBooks,
get
paid
via
ACH.
• Your
cost
is
$0.50
per
payment.
No
monthly
fees.
• Reduce
trips
to
the
bank
and
improve
cash
flow
10

15. Top
5
AccounMng
Apps
for
Startups
5. Dashboards
• Use
a
dashboard
to
tell
the
“story”
behind
the
numbers.
• Eliminate
hours
of
Excel
number
crunching.
• Daily
Sync
with
QuickBooks
(WebKPI,
MyProfitSee,
EssenMal
CFO)
11

16. Seed
Round
Series
A/Pre-­‐Commercial
Launch
Secure
Outsourced
AccounMng
Monthly
30-­‐minute
call
with
your
Outsourced
Accountant
Add
Mobile
AnalyMcs
or
Weekly
Flash
Add
a
SecureDocs
Account
Add
Bill.com
for
A/P
Add
app
for
Expense
Reports
Open
Bank
Accounts
and
Add
Online
Banking
Add
Intuit
Payment
Network
Approval
Levels
or
Merchant
Services
Accounts
for
A/R
Formalize
Annual
Plan
Add
a
Dashboard
Track
Actual
performance
to
Forecast
via
the
Dashboard
Open
Payroll
and
Sales
Tax
accounts
as
needed
Add
Payroll,
Purchasing,
HR
and
Risk
Mgmt
SoluMons.
Add
Credit
Policies,
Fixed
Asset
Tracking
and
Equity
Tracking
Timing
12

17. Outsourced
AccounMng
Services
On
the
Spot
vs.
On
Demand
Bank
ReconciliaFons
Accounts
Payable
ForecasFng
and
BudgeFng
Audit
Support
CEO
Dashboards
A/R
&
CollecFons
AccounFng
Systems
and
Apps
IntegraFon
13

18. Thank
You
For
Outsourced
AccounMng:
Klepp
&
Associates
Email:
admin@ocquickbooks.com
Tel:
(949)
433-­‐2460
Web:
www.ocquickbooks.com
www.linkedin.com/in/ireneklepp
14

19. Interested
in
Learning
More?
For
a
free
trial
of
SecureDocs:
Email:
sales@securedocs.com
Tel:
866.700.7975
Web:
www.securedocs.com
15