San Francisco if the city of entrepreneurship. We have many clients who work at the technology startups that are clustering in the San Francisco Bay area, and in particular in the South of market area in San Francisco. Indeed, providing accounting and tax services for startups is one of our focus areas for 2015. You can learn more about our corporate tax services on our website.
Our current newsletter has many informative tips for the employees of startups. The cash flow of a startup employee can be very unpredictable. At first, a startup may be unable to pay very much money out in cash and most of the compensation will come as stock options. Then as the startup begins to succeed the employee may begin to receive more and more compensation in cash, and even be able to leverage the stock options at a fortuitous time.
Creating a Personal Cash Flow Statement: Whether You Work at a San Francisco Startup or Not
As you look forward to 2015, it is important to create a personal cash flow statement. This cash flow statement will indicate your inbound income, which may be primarily from employment but may also include income from rental properties or businesses. It will also indicate your expenses which might be rent on your apartment or a mortgage payment, a car payment, and other expenses.
Just like a business, you can then determine whether you are making money, or losing money, and then look for opportunities to reduce expenses or increase income.
If you are working at a San Francisco startup, this exercise can be very complicated, as your income may vary. However, you want to look forward to the new year with optimism, and reach out to us for a consultation about how we can minimize your taxes, no matter what stage of startup employment you’re at. The exercise of creating a personal cash flow statement is something we can help you with, and we can certainly help you identify the most judicious moment to cash in on stock options.