Previous Post
Next Post
1

Asked by

Community Member

on

in

Accounting & Taxes

Do you recommend cash basis accounting for Fund I, II, and III?

If so, why? If not, why not? Do you recommend cash basis accounting for operations but also having accrual in your data room for future limited partners that require reporting on GAAP standards?
1 See in Base
0

Answered by

Community Member

on

Accrual base accounting is the preferred method for VC Funds.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?