Entity structure, accounting system selection, revenue recognition policy, equity documentation, and the initial chart of accounts are not administrative details. They are the foundation on which every subsequent financial decision is built, and the foundation that institutional investors, lenders, and acquirers will eventually examine. Getting these right at the outset is significantly less expensive than restructuring them once the business has grown around them.
What this engagement covers
- Entity structuring – advising on the appropriate legal and tax structure for the business based on its ownership, funding plans, and intended growth path, before those decisions become difficult to reverse.
- Accounting system selection and setup – evaluating and configuring the accounting infrastructure appropriate for the current stage and capable of supporting the next, without overbuilding for where the business is today.
- Chart of accounts design – establishing an accounting structure that produces the financial information the business needs to operate and that will support the reporting requirements of future investors and lenders.
- Revenue recognition policy – defining how revenue is recognized in a way that is technically correct under GAAP and consistent with how the business model actually generates revenue.
- Financial reporting cadence – building the monthly and quarterly reporting rhythm that keeps management informed and establishes the governance discipline institutional partners expect.
- Equity and cap table structuring – ensuring the equity documentation, option pool structure, and cap table are accurate, properly maintained, and will not create complications in a future raise or transaction.
Who this is built for
Founders who are building a business with the intention of raising institutional capital, reaching a meaningful scale, or eventually realizing value through a transaction. The decisions that matter most in this engagement are the ones that seem low-stakes at the time – the entity structure chosen in year one, the accounting treatment applied to the first contracts, the equity documentation for the founding team. These decisions compound.
When to engage
Before revenue begins, where possible. At the latest, before institutional conversations begin. The cost of restructuring a poorly designed foundation rises with every month the business operates on it.
What Krishnan brings
The perspective of someone who has evaluated the financial foundations of businesses at every stage as an acquirer, as a finance executive, and as an advisor. He knows what institutional investors find when they look at a business that was not set up correctly, and he designs the foundation to avoid those findings.
The financial infrastructure an early-stage business needs
- A legal entity structure that is appropriate for the intended funding path and does not create tax or governance complications as the business scales.
- An accounting system that produces accurate, timely financial statements without requiring disproportionate finance team time to maintain.
- A revenue recognition policy that is technically defensible and applied consistently from the first contract.
- An equity capitalization table that is accurate, up to date, and maintained in a format that will not require reconstruction before a raise or transaction.
- A financial reporting cadence – monthly close, management accounts, board pack that establishes governance discipline before external stakeholders require it.
- A basic internal control environment that protects the business from financial error and fraud as headcount and transaction volume grow.