Dear VC,
Let’s be real: most early-stage startups don’t need a CFO.
What they do need is a bookkeeper who doesn’t suck.
I’m talking about someone who knows how to do more than just categorize DoorDash receipts and dump a stack of journal entries into QuickBooks. I mean a bookkeeper who actually understands what matters to you—cash runway, burn rate, margins, revenue recognition, and whether that “growth” story holds up under the hood.
Because here’s the dirty little secret:
Sloppy books are the most preventable way a startup blows up a funding round.
Let me paint a picture. Founder raises $2M seed. Hires a cousin’s friend for $200/month to “handle the books.” Fast forward 12 months. You’re prepping for a Series A. The diligence starts. The numbers wobble. The investor’s analyst starts asking questions. Nobody can explain the deferred revenue. Gross margin is off by 30%. CAC isn’t even calculable. The founder’s now explaining their story and apologizing for their books.
That’s not just embarrassing—it’s expensive.
Bad bookkeeping erodes credibility.
And credibility is the most important currency a founder has.
Here’s why you should care:
1. It Protects Your Investment
Accurate financials mean fewer surprises. When your portfolio company needs bridge funding, how do you know it’s not just a cash flow timing issue? Clean books are how.
2. It Speeds Up Fundraising
When a startup is ready to raise, you want them to move. Having audit-ready books is like having a packed suitcase for a red-eye flight. You go when the opportunity strikes, not after a month of cleanup.
3. It Reveals Operational Issues Early
A good bookkeeper flags irregular burn, underpriced services, or expense bloat before it shows up in KPIs. That early signal helps course-correct without drama.
4. It Keeps the Founder Focused
Founders should be building product, hiring talent, and selling. Not triple-checking whether Stripe is reconciling to QBO or Googling what a 1099-NEC is.
So what should you look for in a bookkeeper?
- Someone who speaks founder and finance.
- Someone who reconciles every month, on time.
- Someone who sends clean reports that make sense.
- Someone who thinks like an operator, not just a ledger monkey.
In short:
Someone who gets it.
If your PortCos are outgrowing their spreadsheet phase, you might want to make sure the person managing their books is more than a warm body with an Intuit login. Because when the money’s moving fast, you need someone who can read the dials on the dashboard—not just clean the windshield.