FAQs
Usually one of three things: the bank feed is incomplete, the chart of accounts has overlapping categories the rules cannot choose between, or the vendor is new with no history to match.
Uncategorised transactions are a review queue, not a failure. Our guide to expense categories covers how to structure them.
Net burn is cash out minus cash in for the month, taken from actual bank movement rather than the P&L. Runway is your cash balance divided by net burn, in months.
Gross burn ignores revenue and is the larger number, so check which one a figure refers to before comparing it to anything.
The three core statements, income statement, balance sheet, and cash flow, plus supporting reports such as AR and AP aging, expense breakdowns by category, and period comparisons.
Those are what investors ask for in diligence and what your tax return is built from.
Connect your payroll provider so each run posts to your books with gross wages, employer taxes, withholding, and benefits split into their own accounts rather than landing as one net figure.
The split is what lets you reconcile against payroll filings and against the single debit that hits your bank.
If you don’t have a Mercury or Brex account, you can still connect your bank account to Inkle Books using Plaid, a secure financial data aggregator. Simply navigate to the “Data Sources” section in Inkle Books, select “Connect,” and click on “Other banking institutions” in the connect modal. Follow the prompts to connect your bank via Plaid.
Plaid supports over 12,000 US financial institutions, so you should be able to link your bank account without issues.
We use the Advanced Encryption Standard (AES) algorithm with a key size of 256 bits and with a unique and proper encryption key rotation policy for each customer.
Accrual, in almost every case. It shows a truer picture of the business, it is the GAAP standard investors expect, and it makes forecasting possible. You also have to move to it once revenue crosses 25 million dollars.
Cash basis is defensible with very little activity. The IRS does not allow a mid-year switch, so decide before the year starts. We compare the two.
Still have questions?
Reach out to our support team if you have any additional questions regarding filing.
