Startup Accounting, Financial Reporting & CFO Advisory

A founder needs to know more than the bank balance. What has the company committed to spend? Which milestone can the remaining cash fund? Do the financial statements agree with the investor update? Philip Falco, Attorney & CPA, helps startups connect accounting records, legal obligations, and management decisions.

Build Reliable Records While the Product Is Being Built

Set up accounts around the business’s actual activity, including founder contributions and loans, financing instruments, payroll, development vendors, and material commitments. Separate business and personal spending and document reimbursements. Reconcile accounts on an agreed schedule and resolve unexplained balances before using reports for decisions.

A monthly close can include bank and credit-card reconciliations, unpaid bills, receivables where applicable, payroll records, and a review of equity and financing activity. The right scope depends on transaction volume, reporting obligations, and the records available.

Cash Runway and Milestone Forecasts

A useful forecast distinguishes cash already available from hoped-for financing. Model hiring, vendor deposits, prototype revisions, tax payments, and contractual commitments. Include a downside scenario that assumes a delayed round or slower revenue.

For example, $300,000 of cash divided by $50,000 of average monthly net cash use suggests six months of runway. That simple estimate can be misleading if a large development payment comes due next month. A dated cash schedule makes those timing differences visible. Forecasts are planning tools, not assurances of future results.

Investor and Management Reporting

• Balance sheet and operating results prepared on an identified accounting basis.
• Cash activity and a forward cash forecast with documented assumptions.
• Budget-to-actual results and explanations of significant differences.
• Development milestones, committed spending, and funding needs.
• Ownership and financing schedules reconciled to signed documents.

Agree on definitions for measures such as burn rate so each report is comparable. Keep projections separate from historical results. Management reporting and bookkeeping do not by themselves provide an audit, review, or other assurance opinion; any such work requires a separate engagement and assessment.

Fractional-CFO-Style Advice With a Clear Scope

An advisory engagement may include budgeting, cash planning, financing scenarios, management reports, and coordination with tax and legal work. It does not appoint Philip Falco as CFO, officer, or director or give him authority to bind the company. A formal role requires a separate written agreement and appropriate company approval.

The existing CFO and Board Service page addresses that broader service area. Founders seeking continuing advice can also discuss a defined retainer engagement. Responsibilities, access to records, deliverables, timing, and fees should be agreed in writing.

Coordinate the Tax Calendar

Review entity returns, owner information where applicable, payroll, contractor reporting, state obligations, and relevant elections. A company without revenue can still have reporting duties. Annual business tax preparation and year-round tax advice should use the same underlying records.

Prototype and software spending needs a separate research-cost review under §§174 and 174A. Book treatment, tax deductions, and credit eligibility are not interchangeable. Record project purpose, who performed the work, where it was performed, and the supporting contracts.

Legal Commitments Belong in the Forecast

Employment offers, development contracts, leases, notes, and investor rights affect the company’s financial choices. Review worker classification based on the applicable rules and actual relationship before relying on a contractor label. Coordinate payroll setup and specialist advice when needed.

For a consultation, bring recent statements, bank records, accounting exports, the capitalization table, financing documents, payroll information, major contracts, and the current budget. Identify the next decision the reports need to support, such as hiring a developer or accepting seed financing.