By Stephanie Guyotte
Founders and entrepreneurs wear many hats. But one area not to overlook is your business’ financial health.
All businesses are subject to taxes, and often other financial regulations, so starting off on strong financial footing is key. And that means looking at and understanding your financial data.
“Startups have to be working with a great set of data,” said Janelle Gorman, Chief Financial Officer at York IE. “Following feelings and inclinations can be dangerous in a startup world that has so many potholes.”
Gorman led a discussion on Financial Planning and Modeling for Startups at a lunch and learn hosted by the UMass Lowell Innovation Hub and York IE, a strategic growth firm.
Gorman, a CPA, manages finances at York IE while also advising startups in the company’s investment and consulting practices.
The event was attended by iHub and M2D2 member companies in person at the Innovation Hub Lowell and an online audience of more than 50 people, which included startup founders, entrepreneurs, alumni, students and UML staff and faculty.
Gorman encouraged attendees to start with ensuring that basic accounting tasks like bookkeeping, tax compliance and reporting are done right.
“These are critical to a business,” she said. “It’s always worth the time to get this stuff right.”
Gorman offered tips for companies to create relevant forecast models and some tools to do so, while encouraging attendees to operate with the mindset that models need to be dynamic and updated often.
“Things don’t always go as planned,” Gorman said. “What are your financial objectives in your strategic plan and your relevant metrics for success?”
Hear more on financial planning from Gorman on YouTube
. Learn more about the company at the York IE website