Innovation
Your cash flow questions answered, with Novabook
- Innovation
- Article
- 7 minutes read
We speak with Ruben Portz, COO at startup accounting specialist Novabook, about the best ways for founders to build great cash flow statements and financial models, before they hire their first finance leader.
- A great cash flow forecast is a building block for your strategy, from revenue projections through to expected headcount growth.
- Early-stage companies don’t need to start with a full 13-week cash flow model. But your model and forecasts should be regularly updated and maintained, to enable better conversations with your board and more candour with your team.
Your cash flow forecasts will inform the timing of your fundraising process, your hiring plans, and much more. In this interview, HSBC Innovation Banking Senior Vice-President Emily Wood speaks to Ruben Portz, COO at startup accounting firm Novabook, to unpick exactly how to make sense of your numbers when you’re in a young, fast-growing business.
Managing cash flows in a company with stable or growing revenues is one thing. When you’re a very early-stage, pre-revenue startup, your forecasts are based on assumptions. Ruben assesses solid ways for founders to cut through the noise and deliver credible, reliable metrics to share with boards, employees and investors.
Other topics on the agenda include: the varying financial complexity in different tech sectors; breaking down the different sales and marketing activities into revenue projections; and processes to tighten up cash flow and burn if needed.
Together with Novabook, we’ve designed a template financial model for early-stage startups, giving founders the building blocks they need to make sense of their startup’s P&L, cash flow and working capital. Get the template now.
Any opinions expressed are merely opinions and not facts. All information in this document is for general informational purposes and not to be construed as professional advice or to create a professional relationship and the information is not intended as a substitute for professional advice. Nothing in this document takes into account your company’s individual circumstances. HSBC Innovation Banking does not make any representations or warranties with respect to the accuracy, applicability, fitness or completeness of this document and the material may not reflect the most current legal or regulatory developments. HSBC Innovation Banking disclaims all liability in respect to actions taken or not taken based on any or all of the contents in this document to the fullest extent permitted by law. Nothing relating to this material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
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