A startup’s first finance review: questions to ask after month one

Ask which bank and processor accounts were reconciled and whether any cash is restricted or awaiting payout. Compare the statement dates with the reporting period. A dashboard balance updated today does not necessarily explain the cash reported at last month's end.

Identify near-term payroll, vendor payments, taxes, and other commitments. A company can have a positive bank balance while most of it is needed within the next few weeks.

Review contributions, loans, reimbursements, and payments to owners. Retain the relevant agreements and receipts. Confirm that money introduced by an owner was not recorded as customer revenue.

If the company raised funds, match receipts to signed documents and the accounting review. Identify any investor amount still outstanding. The first close is a useful time to resolve differences before financing activity becomes mixed with ordinary operations.

Ask what the company owes, which customers owe it money, and whether prepayments or assets need schedules. Look for unexplained opening balances and suspense accounts.

Choose two or three material expenses and trace them to invoices or payroll records. The purpose is to check that the classification and timing are understandable, rather than to inspect every small purchase with equal effort.

Name the people supplying receipts, payroll changes, billing records, and contract updates. Agree how missing information will be requested and what deadline supports the close. A recurring source omission is a process issue to fix while the team is still small.

Check that the company controls access to its records and can export them. A provider's good work should remain available if the assigned accountant changes or the relationship ends.

Record the next cash commitment, outstanding accounting questions, filing responsibilities, and the date of the next review. Give each action an owner and a required piece of evidence.

Use the first month to settle the structure of the reporting package. Keep definitions and statement presentation stable enough to compare later periods. Add detail when it helps a real decision, such as a hiring plan or customer collection issue, instead of expanding the pack for appearance.