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Fundamentals of financial startup are the ones that startups must be aware of to ensure their financial health and obtain the funds they require to expand. Without these basic requirements, nine out of 10 startups fail. Cash flow is the reason. Startups that don’t know how to track and forecast cash flow will be unable to manage its budget or financial startup basics invest in growth.

Essential startup accounting records, such as income statements (revenue and expenses) and financial projections are vital to demonstrate the viability of your business plan to investors. These models should be carefully calculated to accurately reflect the true economics of your company as well as easy to overlook costs like shipping, taxes and insurance, payment processing fees, and utilities.

In the early stages, startups can obtain financing from family and friends if traditional lenders are not an alternative. In this instance however, it’s important to have terms of the loan written down to avoid conflicts regarding the repayment obligation or future performance expectations.

Startups can also look for venture capital from private investors or crowdfunding platforms like Kickstarter. These types of funding often require a written business plan, which includes a thorough financial forecast. Creating a model allows you to gain a better understanding of the financials of your company, which allows you to make educated decisions about the amount of capital you need and what strategic goals you’d like to accomplish by the end of the year.