According to CB Insights, the top 2 reasons startups fail are lack of product market fit and running out of cash. Probably not the most shocking piece of information, but incredibly important to those starting their businesses now or in the future. It makes sense that if there is no market for the product that the business would likely run out of cash. Early on, the product side gets more attention, and that should be the case. However, the finance piece is often pushed to the back burner, which can result in a failure even if there is a market fit.
In the last few years, many founding teams have realized that a core competency of survival is financial acumen. So there has been a strong movement in the finance and accounting space to support startups with outsourced, automated, and fractional service models. These models vary depending on the provider as well as the services being offered to the startup. It is not a one size fits all scenario, so understanding what you need as the business evolves is crucial. We like to think about it like a finance roadmap.
As mentioned, there is not a standard template that works for every startup. That being said, the key phases outlined should provide a guide to know when engaging a firm to assist your company with its financial needs and avoid becoming another statistic.