Startups are always racing against time and cash—and every minute spent on technical accounting is a minute NOT spent building the dream.
Big news for private companies: ASC 718’s practical expedient lets startups use a 409A valuation to determine the current price input of equity-classified share-based awards issued to both employees and non-employees using the reasonable application of a reasonable valuation method, sparing them complex models and wall-to-wall spreadsheets. This means startup teams can focus on scaling, not sweating over share price calculations.
For founders, this is more than technical relief—it’s a chance to keep accounting streamlined and VC investor-ready, with fewer headaches before potential exits or public listings.
Smart finance isn’t just reporting; it’s about staying nimble while building the vision ~ that’s where a Fractional Controller can help.
💡 If your startup is looking to offload the accounting and GAAP compliant financial reporting requirements for your investors (👋ASC 606, Internal Use Software, Lease Accounting) Contact Tekio Advisors Today❗️
#startups #stockcompensation #accountingforstartups #founders #ASU2021-07
#ASC718
#PCC 2018-01
#SAAS