Startup Accounting
Startup Budget & Operating Expense Planning
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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Why Startups Need a Budget (Even Pre-Revenue)
- A budget forces founders to make explicit assumptions about growth, hiring, and spending, turning strategy into measurable financial targets.
- Investors expect budget-to-actual reporting in board packs; without a budget, you cannot demonstrate financial discipline or explain variances.
- Pre-revenue startups need a budget to manage burn rate, plan runway, and make informed decisions about when to fundraise.
- A budget is a living document that should be updated quarterly as your assumptions change and actual results provide new data points.
Related Resources
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Understand the Generally Accepted Accounting Principles that every startup needs to follow, from revenue recognition to accrual accounting.
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