I’m not sure what your focus with your business is right now?
- Raise funds to fund business growth
- Thinking about selling
Well before you do anything you need to be switching your accounting from cash based to accrual. No arguments. Do it.
Basically, it shows you are serious and your business is being set up as a business and not a hobby. Would be investors want to know that and it will also get you thinking seriously about your business.
Look, there may be some situations where everything you deal with is cash. But in the main, as your business starts to scale you will start sending invoices to clients and they will start sending invoices to you. You want to align the recording of those details with when you actually provide or consume those services, not necessarily when the cash moves (which might be 30 or 60 days later). This is how serious businesses operate and you should too.