Accrued Bonuses and Year-End Payroll Timing
Your team earned their bonuses this year, but the money may not reach their bank accounts until January or later. That gap between earning and paying is where …
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Explainer
Fully Diluted Shares Explained With a Worked Example
You own half the shares, so you own half the company. Right? Not quite. Once options, warrants and SAFEs enter the picture, the number that investors, lawyers …
What a Statement of Changes in Equity Shows
Your profit and loss shows how the business performed, and your balance sheet shows where it stands. The statement of changes in equity is the quiet bridge …
Gross Margin by Customer Segment Explained
Your overall gross margin tells you how profitable your sales are on average. But averages hide a lot. Some customers buy at full price with little fuss, while …
Convertible Note Maturity: What Happens When Notes Come Due
A convertible note is supposed to turn into equity at your next priced round. But every note also has a maturity date, and sometimes that date arrives before …
Variable vs Fixed Costs With Examples
Some of your costs stay the same whether you have a quiet month or your busiest week of the year. Others climb with every sale you make. Knowing which is which …
Usage-Based Pricing Explained for Startups
Usage-based pricing charges customers for what they actually consume, such as API calls, transactions, storage or active seats. It can feel wonderfully fair, …