Startup Services – How We Support the Early Stages of a Startup and Its Growth

Israel is known as the “Startup Nation” with thousands of emerging companies forming each year to solve the world’s toughest challenges. For these startups to succeed in Israel and abroad, it is critical to have a structured and strategic approach to its financial, operational, and compliance support from day one. Having the support of an external accounting firm can provide the full range of early-stage support and financial services that a new and growing startup needs to thrive in Israel. 

This guide explains how SZ Shvarts Zedkia supports startups through foundation building, scaling, and long term growth.

Learn more about the Startup Kit with the support of SZ Shvarts Zedkia.

Building a Strong Financial Foundation for Startups

For any company getting started, it’s important to put systems in place from the start. This can mean setting up proper bookkeeping systems from day one, so that all records of activity are accurate and reporting systems are compliant. Ensuring clean records means that a startup is prepared for funding rounds. 

Payroll setup is important both for accuracy in compensation, and for thoughtful business planning to be in accordance with complex labor, tax, and social security regulations.  

Cash flow tracking helps ensure a startup can meet its obligations, make informed decisions, and sustain growth without running out of cash. Invoice management makes sure that vendors are paid on time. And overall financial hygiene is critical to maintain day to day, and not just upon year-end.

When getting first set up, startups need to also optimize for their future expansion. Which means having regulatory compliance with both local Israeli standards and international standards. Working with a professional firm like SZ Shvarts Zedkia can help prevent common accounting mistakes in the early stages, and be set up well for Accounting and Audit. 

Tax Planning, Incentives, and R&D Benefits

Early-stage tax obligations can vary depending on the type of startup and its technology. Founders can access R&D incentives and government funding programs that support their growth, especially in the early stages. In Israel there is tremendous funding and support for new startups, so it’s important to be aware of these incentives along with optimising a tax strategy for future scalability.

CFO Advisory for Startup Growth

In the early stages, startups want the expertise of an experienced CFO but there isn’t enough budget to hire a senior employee full time. Combined with the financial performance of a startup becoming too complex to track, then it’s time to consider bringing in an expert. 

By working with an External CFO, startups can access high level expertise at a fraction of the cost. An Outsourced CFO (or Fractional CFO) is responsible for the financial planning and budgeting. They can build financial models, business plans for investors, strategic guidance, and provide forecasts during fundraising and scaling phases. They can monitor cash flow, provide timely reporting, oversee that bookkeeping and payroll runs smoothly, and manage all ongoing financial operations.

It’s a tremendous benefit having a professional to manage the finances, so founders can focus on growth.

Supporting Startup Funding and Investor Readiness

There are many considerations for startups in preparing for an investment. Having a financial consultant at SZ Shvarts Zedkia can help you decide between what kind of funding to seek, and how much is needed.  Startups need accurate and investor-ready financial reports that demonstrate the opportunity and how it’s financially viable. 

Since due diligence is also part of the process, it’s important to have all documentation ready, financial narratives for pitch decks, and the ability to highlight traction and growth potential.

Key Challenges Startups Face in Early Stages

When first getting off the ground, founders are so focused on product, growth, and customer acquisition, they can mistakenly overlook the financial health of their company. Even after an injection of capital, a lack of financial clarity can mean cash flow mismanagement and burning through budgets too fast. Having limited knowledge of tax rules and compliance requirements can mean missed opportunities or potential exposures. And operational bottlenecks can slow growth. Having expert assistance helps avoid these early-stage pitfalls.

Fuel Your Startup Journey in Israel with Expert Support

We at SZ Shvarts Zedkia support the early stages of Israeli startups and their growth. By providing essential services like Accounting, Tax, CFO guidance, Payroll, Bookkeeping, and HR - professional support becomes a long-term growth engine, and not just an administrative task.

The professional team at SZ Shvarts Zedkia takes on its role as a strategic partner from inception to scale, so that founders can feel encouraged to build systems for their company early on to prepare for global growth and fundraising.

Building a startup in Israel? Let SZ Shvarts Zedkia support your financial journey. Book a consultation today.