One term you’ll hear us use often is, “Investor-Ready Financials.”
It’s a standard we’ve created and defined ourselves – the ideal middle ground for ecom brands that need high quality financials, but don’t need to spend $200k on a formal audit.
We use the term “Investor” specifically because it can include an outside investor or YOU as the largest investor in your own company. Technical definition:
The books are ready to be given to an investor with no additional work.
The financials are compiled on an accrual basis in accordance with GAAP and free from material misstatement that would impact an investor or any key stakeholder’s decision.
Financial accounts/categories are formatted and grouped together in a manner appropriate to an ecommerce business to maximize clarity for all relevant stakeholders including management, banks, auditors, investors, and board members.
Once you have Investor-Ready Financials, you’ll find yourself asking fewer questions about your finances, while also feeling much more confident about them. You’ll also unlock…
Clearer Decisions: When you understand exactly how your business is doing, you can make faster, more confident decisions about how to grow.
Cheaper Financing: You get better rates if you can submit comprehensive financials to banks or equity partners.
Audit Access: Having a clean set of financials makes it possible to get an audit that matters.
A Stronger Exit: When it’s time to sell, you’ll spend less time in due diligence, and even get a higher valuation when your books inspire confidence.
You either own your numbers, or your numbers own you. Investor-Ready Financials put you in control.
