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Bon Accounting

@bon.accounting

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▪️I help tech founders scale profitably ⁣
▪️Giving them real financial control ⁣
▪️Without having to hire a full team.

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#techcompany #growth by @bon.accounting

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4 months ago

$200MM funding, now bankrupt. Lessons? by @bon.accounting

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4 months ago

#tech #growth #fl by @bon.accounting

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4 months ago

by @bon.accounting

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4 months ago

💡Tax tip: Don’t forget depreciation on your servers and workstations

Servers, custom rigs, and even office chairs count as depreciable assets. Track asset purchases—and if you’re using them for over a year, they may be eligible for depreciation or Section 179 write-offs. by @bon.accounting

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a year ago

Thank you for the wonderful feedback! We’re honored to have earned your trust and truly appreciate your kind words and support. 🙏 by @bon.accounting

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a year ago

💡Tax tip: Planning a future raise or exit? Clean up the cap table

Planning an acquisition or investor pitch? Get your cap table, deferred revenue, and IP rights in order—clean books and tax compliance boost valuation and reduce legal/tax friction. by @bon.accounting

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a year ago

𝗧𝗵𝗿𝗲𝗲 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀 𝗼𝗳 𝗮 𝘀𝘁𝗮𝗿𝘁𝘂𝗽’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹

3. KPI overview

The outputs of a startup’s financial model typically also include some company and/or sector specific KPIs (key performance indicators). As the name already implies KPIs are crucial metrics for your business.

KPIs do not only matter for an investor, but also for you as a company owner. Based on these metrics you track the performance of your company, experiment with different acquisition channels, business models and cost structures, and you use them to make you and your co-founders laser-focused on the targets you defined.

There are KPIs that show sales and profitability performance (such as revenue growth rate, gross margin, EBITDA margin or profits), KPIs related to cash flow and raising investment (such as the burn rate, runway and funding need breakdown) and company or industry specific KPIs.

SaaS companies for instance typically estimate and track, amongst others, the customer life time value (LTV), customer acquisition costs (CAC), LTV/CAC ratio and the churn rate. For SaaS businesses, these are crucial.

For your business or industry some other metrics might be more important. Perform a bit of research on the web, think about the most important drivers of your company and identify the ones most relevant to you and to potential investors. Include these in your financial model as well.

Source: https://www.ey.com/en_nl/services/finance-navigator/the-ultimate-guide-to-financial-modeling-for-startups?utm_source=Instagram&utm_medium=Post&utm_campaign=Financial%2520Modelling&utm_term=Financial%2520Modelling&utm_content=16 by @bon.accounting

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a year ago

𝗧𝗵𝗿𝗲𝗲 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀 𝗼𝗳 𝗮 𝘀𝘁𝗮𝗿𝘁𝘂𝗽’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹

2. Operational cash flow overview

For fundraising purposes a forecast of the financial statements is typically shown on a yearly basis. Monthly overviews are in most cases not really needed, because for early-stage startups it is more about showing the long term growth potential than about giving an insight in monthly operations.

However, for the actual day to day financial management of your company it is useful to include an operational cash flow for the coming 12 months ahead in your financial model.

Why? Because it addresses questions yearly financial statements cannot answer, for instance about the timing of cash in and outflows. This is important to anticipate (see section ‘Working Capital’ below).

Moreover, it provides you with an opportunity to track your actual performance versus your expected budget on a monthly basis, which helps you cut costs (if needed) and anticipate to potential cash dips months ahead.

To build an operational cash flow forecast you simply list all the categories of cash inflows and outflows (for instance in an Excel), add a starting balance (the cash you own at this very moment) and see what remains at the end of each month.

Source: https://www.ey.com/en_nl/services/finance-navigator/the-ultimate-guide-to-financial-modeling-for-startups?utm_source=Instagram&utm_medium=Post&utm_campaign=Financial%2520Modelling&utm_term=Financial%2520Modelling&utm_content=15 by @bon.accounting

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a year ago

Thank you for the kind words and recommendation! We truly appreciate your support. 🙏 by @bon.accounting

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a year ago

𝗧𝗵𝗿𝗲𝗲 𝗼𝘂𝘁𝗰𝗼𝗺𝗲𝘀 𝗼𝗳 𝗮 𝘀𝘁𝗮𝗿𝘁𝘂𝗽’𝘀 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹

Every sector, company, business owner and investor is different, but a good financial model usually contains at least the three outputs: the financial statements, an operational cash flow forecast and a KPI overview.

1. Financial statements

A solid financial model should include forecasts for the three key financial statements: the profit and loss statement (P&L), balance sheet (BS), and cash flow statement (CF). These are standard tools used by investors, banks, and stakeholders to assess a company’s financial health. If you’re raising capital, having forecast versions of these statements is often essential.

The P&L statement shows income and expenses over a specific period, highlighting profitability. It includes critical metrics like gross margin, EBITDA (earnings before interest, taxes, depreciation, and amortization), and net margin. Investors especially value EBITDA, as it reflects operational performance and enables comparison across companies. The P&L also helps track trends, evaluate budget vs. actuals, and uncover performance gaps.

The cash flow statement breaks down how cash enters and exits the business across three areas:
• Operational cash flow shows cash from daily operations.
• Investment cash flow reflects money spent on or received from assets or equipment. It’s often negative for startups investing in growth.
• Financing cash flow covers capital raised (via loans or equity) and payments like interest, debt, or dividends.

These components together help business leaders plan operations, manage liquidity, and make informed growth decisions. The cash flow statement is especially useful in anticipating funding needs and ensuring the company stays on solid financial ground.

Source: https://www.ey.com/en_nl/services/finance-navigator/the-ultimate-guide-to-financial-modeling-for-startups?utm_source=Instagram&utm_medium=Post&utm_campaign=Financial%2520Modelling&utm_term=Financial%2520Modelling&utm_content=14 by @bon.accounting

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a year ago

2️⃣ 𝗕𝗼𝘁𝘁𝗼𝗺 𝘂𝗽 𝗳𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴

The pitfall of the top down approach is that it might seduce you to forecast too optimistically (especially sales). Often entrepreneurs calculate SOM (equal to sales) by taking a random percentage of the market, without really assessing whether this target is realistically achievable.

A tiny percentage of a market might seem insignificant, but could be way too optimistic—especially in the year of your launch. That’s why it can be useful to complement the top down method with the bottom up approach.

The bottom up approach is less dependent on external market data and instead uses internal, company-specific inputs like sales metrics or operational capacity. Unlike the top down method, bottom up starts with a micro/inside-out view and builds up to a macro outlook, projecting outcomes based on the main value drivers of your business.

Short example:
Let’s say a SaaS company relies heavily on LinkedIn ads. It can estimate cost-per-click using LinkedIn’s ad tool, predict the number of website visits, and apply conversion rates from visit → lead → customer. Based on these metrics—and the ad budget—it can build a realistic sales forecast.

Bottom up forces you to think critically about realistic targets and how to allocate your resources. Revenues, costs, expenses, and investments are all estimated from what’s available now.

The downside?
Bottom up might lack the forward-looking optimism investors expect. It can make rapid growth hard to model—especially when each sale is rationalized and growth is limited to current capacity. It’s also tough to account for virality or word-of-mouth. Plus, the need for external funding is often to expand that capacity.

So, for startup forecasting, combining top down and bottom up is smart. Use bottom up for short-term realism (1–2 years) and top down for long-term ambition (3–5 years). That way, your short-term goals are credible—and your long-term vision is bold enough to attract investment. by @bon.accounting

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a year ago