Venture Capital Accounting: Essential considerations for Hiring an Accounting
The stark reality of venture capital enterprises that have just entered the business is that in their initial phase, they face a problem where bookkeeping is no longer capable of handling the moving parts. It requires an entire team of accounting specialists who are professionals in accounting, legal, and tax concepts to effectively report and manage the domains. The essential checklist to be ticked through venture capital accounting are: Perpetuating portfolio valuation based on the figures of moving areas. Forecasting the value of illiquid, multi-year private enterprise holdings Handling complex tax structure and creating tax records Scheming and reducing management fees. Creating audits and annual or quarterly financial reports. Calculation of profit shares based on the value of lockups, holdings, exit proceeds, etc. Clear, concise, and regular communication with all the stakeholders. Assigning investments for a few partners who were onboarded at contrasting times If any of th...