If you’ve ever invested in a startup, you’ll know the thrill of spotting potential. The team is energetic, the product has promise, and the market is ripe for disruption. But once the cheque clears and the business is running, one question always looms: how do you really know what’s happening with your investment?
For many investors, the answer comes far too late. The financial reports arrive weeks or months after the fact, and by then, the numbers are more history lesson than useful guide. In a fast-paced startup environment, waiting that long for clarity is like trying to drive while looking only in the rear-view mirror.
This lack of timely financial information is one of the biggest frustrations we hear from investors. It’s not just inconvenient, it can directly impact the ability to make good decisions, protect capital, and spot opportunities.
Let’s explore why this happens, why it matters, and how it can be fixed.
Why Investors Often Get Late Information
Most startups don’t have a finance department. They’re lean, focused on growth, and trying to stretch every penny of investment. Financial admin is often a secondary priority, managed by a founder or a bookkeeper whose main job is to process transactions.
This means financial reports will lack any review and analysis. They’re backward-looking, slow to arrive, and often lacking in context. By the time they reach investors, the insight they offer has lost much of its value.
Why Timely Information Matters
Timely information isn’t about numbers for the sake of it. It’s about control, clarity, and confidence.
- Early warning signs: Cash burn accelerating? Customer payments slowing? These are issues you want to spot in real time, not three months later.
- Smarter decisions: Investors need to know when to support growth, when to push for efficiency, and when to step in with advice. Without live data, decisions are based on guesswork.
- Trust and transparency: Nothing builds investor confidence like regular, reliable reporting. Conversely, nothing damages trust faster than surprises.
In short, late numbers mean late action, and in the world of startups, late action can be fatal.
What Good Looks Like
So, what does “timely financial information” actually mean for startups and their investors? At a minimum, it should include:
- Monthly management packs – not just statutory accounts.
- Dashboards showing key metrics like cash runway, burn rate, and revenue growth.
- Simple commentary explaining what’s changed and why.
- Forward-looking forecasts to give a sense of what’s coming next.
With this in place, investors don’t just get numbers. They get clarity and context, delivered quickly enough to actually make a difference.
Action Points for Investors
If you’re an investor frustrated by late or incomplete information, here are three practical steps to take:
- Set clear expectations upfront. Agree with founders what financial updates you need and how often. Monthly is a good rhythm for most early-stage businesses.
- Focus on the metrics that matter. Don’t ask for everything. Ask for the numbers that really show the health of the business: cash, runway, burn, and unit economics.
- Encourage startups to seek support. Founders are rarely finance experts. Point them towards external specialists who can take this burden off their shoulders.
Action Points for Founders
If you’re a founder reading this, don’t wait until an investor pushes for better reporting. Instead:
- Be proactive. Share information regularly, even if it feels imperfect. Investors appreciate visibility more than perfection.
- Automate where possible. Use cloud accounting tools that can speed up reporting and reduce manual work.
- Get expert help. If your investor is asking for more than your accountant provides, it may be time to bring in someone who specialises in management reporting.
What to Expect from an Outsourced Accounting Partner
Engaging an external accounting service that focuses on management information (like Team SAS) can transform the way investors and startups work together. Here’s what you can expect:
Speed and consistency: Regular reporting on an agreed schedule, so investors are never left waiting.
Clarity: Investor-ready packs that cut through the noise and explain what the numbers mean.
Visibility: Dashboards and KPIs that highlight the essentials, cash flow, runway, and growth drivers.
Confidence: Founders build trust with their investors, and investors feel reassured that the business is being managed responsibly.
In short, this isn’t about adding another layer of admin. It’s about freeing founders from spreadsheets, giving investors clarity, and creating a shared understanding of where the business stands today and where it’s heading tomorrow.
Startups succeed on speed, focus, and execution. But without timely financial information, even the best ideas can stumble. For investors, it’s not just about protecting capital, it’s about making sure your capital is working as hard as it should. For founders, it’s about showing you’re in control, not just of your product and team, but of your financial future too.
If you’re tired of waiting for numbers that come too late to matter, or if you’re a founder who wants to build stronger relationships with your investors, outsourcing your management reporting could be the simplest and smartest next step.
With the right support, timely information stops being a frustration, and starts being your competitive advantage.
If you would like to discuss this matter with an Accountant and Trusted Business Adviser get in touch with us. We are accountants to SaaS, Tech, and Ecommerce businesses, and offer a range of financial outsourcing services, regular management accounts and virtual CFO services. For a free no obligation consultation email info@teamsas.co.uk or call 0118 911 3777.
Use of this information is for reference only. Specialist Accounting Solutions Ltd accepts no liability for any errors therein or any losses or damages arising from it.
