The basics of financial startups are essential that every startup must know to ensure their financial stability and secure the funds they require to grow. Nine out of financial startup basics fundraising tips ten startup failures are the result of an absence of these basic elements. The reason is straightforward – cash flow. Without understanding how to track and forecast cash flow, a new business will not be able to manage its budget or invest in growth.

The most important accounting records for startups like income statements (revenue and expenses) and financial projections are crucial to prove the viability your business plan to investors. These models have to be carefully calculated to accurately reflect your business’s economics. This includes easily overlooked expenses like shipping, taxes and insurance, processing fees for payments and utilities.

In the early stages startup companies can get funding from family and friends if more traditional lenders aren’t an alternative. In this instance, however, it is crucial to have any loan conditions written down so that there aren’t any conflicts regarding the repayment obligation or future performance expectations.

Startups can also seek out venture capital from a private investor or even crowdfunding platforms such as Kickstarter. These types of funding often require a business plan, that includes a comprehensive financial forecast. A model can help you to gain an understanding of the financials of your company, allowing you to make informed decisions about how much capital you’ll need and what strategic goals you want to accomplish by the end of the year.