Launching and scaling a business-to-business (B2B) startup requires a strategic approach for accounting and financial management.
Business-to-consumer (B2C) startups typically have multiple small transactions, while B2B companies have larger transactions with fewer customers. Some of the other differences between the two business models include:
Those differences mean that business-to-business (B2B) startups come with its own set of unique accounting challenges, including:
These metrics can be challenging to calculate, since data needs to be collected from various systems, metrics like churn rate can vary significantly as the company grows, it can be difficult to separate the costs of marketing and sales strategies, and for very early companies, customer wins and losses will disproportionately affect these metrics.
Typically, B2B companies need to produce the three major financial statements: the income statement, cash flow statement, and balance sheet.
At Kruze Consulting, we offer customized accounting services designed to meet the unique needs of B2B startups:
Hold all-hands meetings
Claim Research & Development Tax Credits on Form 941, and file annual Federal Unemployment Tax Act (FUTA) return on Form 940. Use our handy calculator to estimate your possible research and development tax credit.
Founder startups should send 1099s to contractors. Send W2s to employees and e-file 1099-MISC for non-employee compensation with the IRS. Or file Form 8809 for a 30-day extension to file W2s and 1099-MISC for non-employee compensation.
Conduct annual employee performance reviews
Check progress on quarterly goals
Review key metrics and KPIs
Review and update company policies and procedures
As a specialized accounting firm focused specifically to startup companies, Kruze Consuting is ready to meet the needs of your B2B startup. Leveraging the latest accounting software and fintech solutions, we can streamline your accounting processes, improve efficiency, and give you real-time financial information to help your startup succeed.