Your accounting software serves as the home base for your company’s finances. This software is the backbone of your entire accounting infrastructure.
Accounting software stores organizes, and manages all of your company’s financial operations. You’ll use this software to record transactions and produce basic financial reports like P&Ls and balance sheets (which you will eventually use to file your taxes!).
Setting up your accounting software should be the first step when building your tech stack.
- Similarly, Brex is a comprehensive business banking platform with AP features.
Accounts Receivable (AR) / Invoicing
You also need a tool to manage invoices and payments from your clients.
Today’s customers expect to be able to pay their bills online. If you don’t provide the option for online payments, it will negatively affect the overall customer experience as well as how many customers will complete a purchase with you in the first place.
In addition to offering an online purchasing option, we highly recommend having a tool that streamlines the customer payment process and produces solid records of your collections. This efficiency will benefit both your customers and your operation.
- If you prefer to work with one of the major U.S. banks, Chase offers reliable options for small businesses.
This kind of tool keeps you organized, minimizes the risk of error, streamlines costs, and establishes a process that can last even as your company scales. All of this ultimately means a healthier bottom line for your business.
Inventory software also helps you identify the most cost-efficient methods for ordering new products. It can even help you forecast inventory to minimize risk.
- This is a reliable PEO with solid customer support options.
In the U.S., merchants are only required to collect sales tax in states where they have a “sales tax nexus.” This is regardless of whether they have brick-and-mortar locations or are an online seller.
Sales tax nexus is just a fancy legalese way of saying “a significant connection” to a state. If you have nexus in a state, then that state considers you on the hook for charging sales tax to buyers in the state. You’ll always have sales tax nexus in your home state, but you may find that certain business activities create nexus in other states too.
- If you need more robust tax compliance options, this is a great option.
Cap Table Management
Startups need to keep track of ownership from the beginning. If you don’t have ownership documented, you’re going to have a difficult time raising capital in the future.
You also need to understand your options when it comes to adding and retaining top talent. Cap table management helps you stay on top of your ownership options, ensuring that ownership is clear to all parties involved.
- This platform offers real-time cap tables that you can use in the fundraising process.
Deferred revenue is money received in advance for products or services that will be delivered in the future. If you don’t track your deferred revenue, you could end up overstating your revenue, which affects your KPIs.