When do you bring financial oversight to your startup?
Hello and welcome to the Hashtag ask, a founder series of mistycast Today's topic is inspired by the recent implosion of FTX and Sam Bankmanfreads crypto empire. One of the salient points to come out has been the seeming lack of financial oversight and proper bookkeeping in this whole scale handle that has unfolded
Aayan Banerjee
@BasTalk · 3:17
Here. My ground level philosophy for this is that being efficient, being financially disciplined, having strong processes is not a project, it's a way of life. Oftentimes in my consulting experience, I come across founders who hide beneath the phrases like we are too young, we are too small, it's too early, we'll get there. When we get there, it's still some years away. And the result of that lackadaisical approach is that they never get there
Hi Aayan, thanks for that insight. I completely agree with your starting early victim. In our own case, my previous startup, we were fortunate that my cofounder had a background in finance as well. And so she was able to put some really a good solid practices right from the beginning. And then as we scaled up and we hired a parttime CFO, there are companies that specialize in providing such fractional leadership resources and part time controller and eventually we can end up with a full time VP of finance
phil spade
@Phil · 1:17
And I know certain aspects of Sarbanes Oxley also applies to public companies. So I'm wondering if you or anybody else here has really looked into when it is required by law to really have that financial oversight or face those stiff penalties