{"id":27218,"date":"2025-09-05T08:00:00","date_gmt":"2025-09-05T08:00:00","guid":{"rendered":"https:\/\/synder.com\/blog\/?p=27218"},"modified":"2025-09-30T11:38:16","modified_gmt":"2025-09-30T11:38:16","slug":"bad-bookkeeping-and-how-to-fix-it","status":"publish","type":"post","link":"https:\/\/synder.com\/blog\/bad-bookkeeping-and-how-to-fix-it\/","title":{"rendered":"6 Practical Bookkeeping Tips to Boost Your Startup’s Chances for Funding"},"content":{"rendered":"\n

Securing funding is huge for any startup, but there\u2019s one issue that could catch you off guard.<\/p>\n\n\n\n

Get this – 90%<\/a> of startups fail.<\/p>\n\n\n\n

It doesn\u2019t happen overnight, of course. But between the 2nd and 5th year 70% of startups have already folded. So, what\u2019s the kryptonite here that causes such devastation? The reasons are many, but topping the list\u2014 with a scorching 38%<\/a>\u2014is running out of cash and failing to secure new capital.<\/strong><\/p>\n\n\n\n

Today, I\u2019m going to show you how to master foolproof bookkeeping.<\/p>\n\n\n\n

I\u2019m Ilya, a co-founder of Synder, a robust GAAP-compliant accounting toolset that helps business owners and accountants automatically record transactions and recognize revenue the right way<\/em>. We’ve also been through Y Combinator and the AICPA startup accelerators, successfully raising capital along the way, so we have firsthand experience from the trenches too.<\/p>\n\n\n\n

So, let\u2019s get into the key dos and don\u2019ts of record-keeping to boost your chances of securing funding.<\/p>\n\n\n\n

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Contents:<\/strong><\/p>\n\n\n\n

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How are startups doing?<\/strong><\/p>\n\n\n\n

Money issues aren\u2019t the only source of trouble for startups. Based on the above CB Insights research, these are 5 top reasons* why startups fail:<\/p>\n\n\n\n

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  1. Running out of cash\/failing to raise new capital – 38%<\/li>\n\n\n\n
  2. No market need (no PMF) – 35%<\/li>\n\n\n\n
  3. Got outcompeted – 20%<\/li>\n\n\n\n
  4. Flawed business model – 19%<\/li>\n\n\n\n
  5. Regulatory\/legal challenges – 18%<\/li>\n<\/ol>\n\n\n\n

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    \"An<\/figure><\/div>\n\n\n

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    It looks grim but there\u2019s hope. The hope that\u2019s called accurate bookkeeping from the start<\/em>. <\/p>\n\n\n\n

    Why you should have your books in perfect order from the get-go<\/strong><\/h2>\n\n\n\n

    That was my first major lesson as a startup co-founder. I clearly recall our initial attempt to raise funds\u2014it was a mix of excitement and naivety. The reality hit us quickly: there was an immense amount of preparation required. We needed to gather:<\/p>\n\n\n\n