Weekly Accounting

After building our initial Integrated Financial Model, our insights are in the following categories:

Quality of Bookkeeping: Inconsistencies indicate poor quality bookkeeping. Vendors coded to multiple accounts, lack of attention to vendor names, inconsistent payroll journal entries, inconsistent revenue and COGS entries are quite common. A lot of bookkeepers aren’t really trained properly.
Quality of Accounting: At the next level, we evaluate how close the business is to GAAP. Most of this is done by evaluating the balance sheet and the transactions that make up the balances found there. Deferred revenue, prepaid assets and accrued liabilities are the set of accounts where we usually find the issues.
Timeliness of Bookkeeping: In one venture-backed company we reviewed, no one had touched the books for three months. Many bookkeepers are really only interested in keeping the books for tax purposes. You only file taxes once a year. You operate your business every day. We have a Weekly Philosophy and we encourage all businesses to
Cash Management: Accounts Payable and Accounts Receivable is where we look for these insights.
Revenue Recognition assessment: We look at how you are recognizing revenue and identify any challenges and opportunities.
Payroll Journal Entry: Payroll expense is usually the largest portion of a business’ monthly expense.
Key Metrics review: If you do invoicing from Quickbooks we’ll look at metrics including new customers, repeat customers, average order value.

Stripe Weekly – Marketing CAC, LTV and cohort analysis trended over time
Salesforce and Hubspot Weekly Metrics – Sales pipeline metrics to understand conversion rate and sales person efficiency and Sales CAC.
Shopify – new customers, repeat customers, average order value (AOV), lifetime revenue, lifetime gross profit, LTV to CAC ratio.