I get smarter every time I ask an expert in the software industry the hard questions I hear from founders and CEOs.
Accounting, audits, and taxes are generally the least favorite thing for founders when they are building valuable software companies. But they can screw up a great exit or funding opportunity if you don’t do them right enough from early on. This happens a lot more than founders admit.
Mike Drexler, is an expert in accounting, finance, audits, and taxes for growing software companies. He’s a partner at CPA and audit firm Henry+Horne and he runs their busy technology practice in Phoenix, Arizona.
Mike and his team have worked with hundreds of software companies from startup through growth, sometimes big funding, and eventually selling their companies. He also worked as the CFO of two fast-growth technology companies, including one from startup to IPO.
In this in-depth Ask an Expert interview, Mike shares practical advice and savvy answers to the most common accounting, finance, and audit questions for software founders. Mike says, “With CPAs and audit firms, it’s “Use them now or pay a lot more later.'”
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In this Ask an Expert in-depth video interview, I ask accounting and audit leader Mike Drexler of Henry+Horne the most common questions I hear from tech entrepreneurs when they suddenly need to hire an audit firm.
- Are using Quickbooks software and an account specialist enough for startups or funded companies?
- Do you need to work with an outside accounting firm before you raise outside funding?
- When does a software company need to have an audit or work with an outside CPA firm?
- When is a part-time or full-time CFO needed in addition to accounting staff?
- What has changed in the last two years in funding and tech M&A?
- What are the most common accounting pitfalls that cause problems for founders?
- What is required to be able to sell a software company tax-free using Section 1202?
- What are typical multiples of revenue when selling a software company in 2021 and 2022?
Mike Drexler is a partner at Henry+Horne running their technology practice in Phoenix, Arizona. Mike and his team work with hundreds of software companies from startup through growth, sometimes big funding, and eventually selling their companies. He has a unique understanding of the issues that tech leaders face because he worked as the CFO of two technology companies himself.
Mike Drexler on LinkedIn. – https://www.linkedin.com/in/mike-drexler-38159012/
Henry+Horne website https://www.hhcpa.com/industry/technology/