I have been selling into finance and accounting for my entire professional career. This deck is a must read by a proficient operator.
a160z – Andreessen Horowitz – by Caroline Moon: https://a16z.com/2018/06/11/finance-strategy-leadership/
Takeaways for me:
- Accounting is important, obviously. Creating an operating plan (aka company roadmap) to understand milestones and over-arching Company objectives is the value-add.
- My success with founders is when they understand the cash inflows and outflows. If the owner cannot do this, then the accountant must do it, manage it and understand it in detail. Weekly, monthly and by quarter.
- Geography of expenses and purpose. What is the purpose and how do you track it? What milestone is the expense being tracked against? The reporting must match the operating, product and mission of the company.
- HR – you must have it and understand it. People are as important as the product. Often times this falls under the accounting umbrella.
- The deck includes a message of bringing finance in-house when revenues hit the magical $10-15 million mark, I agree. This greatly depends on the business model. If the model is complex and there is a robust sales team, bring finance in-house much sooner.
Conclusion
- Building an accounting data set starts on Day 1. Garbage in = garbage out.
- Dataset matches operating plan and KPIs.
- Visibility – everyone needs it, watch it and spend time understanding the business.
- Finance often times will make or break a business. Accounting affords you this opportunity to help and lead success!