Building solid financial statements starts with digging through all of the financial transactions in all of our accounts. In our example, we'll do this with a spreadsheet but you can use your accounting software to comb through your financial records and do the same thing.

Once you've done a little bit of startup accounting you'll realize that keeping good financial records is just about process. You don't need complicated accounting software or a finance background, just a dead simple accounting system you can repeat monthly.

What we use at Startups.com

In our own business at Startups.com, we've managed the company's financial position for over a decade using the same basic accounting methods for an 8-figure growing company. We use a basic fi...