For as long as possible, in an early-stage startup, one of the founders should write the check for any expenses of the company. That includes payroll, vendors, SaaS subscriptions, professional services, and how much you’re paying accountants and bookkeepers (whom you may incorrectly think are looking out for the company’s cash).
The reason this is so important is that expenses tend to grow very rapidly as the company grows. Left unchecked, you can get surprised by large bills and overpay for a long time. Every dollar going out is a dollar less in runway.
It takes money to grow, but startup failure is nearly always due to running out of money. Shouldn’t you keep an eye on that?
See also:
- This is especially true when running a startup during a recession when raising more money is not always an answer to high burn rates