What is Startup Accounting?
Startup accounting is the set of bookkeeping, reporting, and tax practices adapted to early-stage companies. It focuses on cash runway, burn rate, SAFE/convertible instruments, equity tracking, and investor-ready financials.
How It Works
- Set up a lean chart of accounts and cash-basis or accrual books.
- Track runway, monthly burn, ARR/MRR, and unit economics.
- Maintain a clean cap table and audit-ready records for investors.
Saudi Context
Saudi startups funded by Sanabil, STV, or Monsha’at venture arm must keep ZATCA-compliant books, file VAT if turnover exceeds SAR 375K, and apply IFRS for SMEs when raising Series A and beyond.
Example
A Riyadh fintech startup with SAR 4 million in the bank and SAR 250K monthly burn has 16 months of runway. Its books track MRR, CAC, and gross margin monthly.