Formations reposted this
Why We’re Motivated to Build a Tax and Accounting Company, Not Just a Tech Company Startups are hard. But you know what else is hard? Accounting. Formations, our motivation comes from a deep understanding of how difficult it is to navigate taxes and finances—not just as a business, but as the self-employed individuals we serve. Our roots are in tax and accounting. It’s not just a product vertical or a market segment; it’s our DNA. 🧬 Frank Rotman’s recent post about the importance of first principles in an age of disruption resonates deeply. While many solutions in our space are motivated to build tech companies that happen to focus on tax and accounting, we’re building something fundamentally different. We’re motivated to build a tax and accounting company—where technology is the enabler, not the purpose. Why does that distinction matter? Because our priorities, problem-solving, and customer value are rooted in the needs of the self-employed. We don’t just “happen” to focus on taxes. Our focus has delivered real results for the self-employed: 🤑 On average, we help our customers save $14,801 in taxes annually, putting more money back into their businesses and lives. 🏠 We empower customers to use tools like #costsegregation for the first time, making their real estate portfolios significantly more tax-advantaged. 🧓 We simplify and encourage #401k participation, helping our customers build strong retirement cushions that are often overlooked in the self-employed world. ⏲️ 65% of our customers filed their taxes without needing an extension, demonstrating how proactive planning and accurate execution can reduce stress and improve outcomes. 🎮 Beyond compliance, we help customers take control of their financial futures with actionable insights that transform how they think about taxes and finances. And for us as a company, staying rooted in first principles means operating with discipline and focus: 🧑⚕️ We’re proud to maintain healthy operations, growing profitably while staying at a break-even position. 💰 We’re on track to achieve profitability for the first time in 2025, a testament to our sustainable and focused approach. 🪴 Month over month, we’re maintaining healthy double-digit growth rates, with an average renewal rate of over 90%, proving that a customer-first mindset and disciplined operations can drive long-term success. By staying true to our foundational truths, we create solutions that make a real impact. In times of rapid change, when narratives and disruption dominate the conversation, anchoring ourselves in first principles ensures that we’re delivering tangible value where it matters most. So yes, startups are hard. But building trust in an industry where every dollar counts? That’s where the real challenge—and reward—lies. #Leadership #FirstPrinciples #Accounting #TaxTech #Motivation #Startups
The Wisdom of First Principles in an Age of Disruption In times of profound transformation, there's a natural tendency to get caught up in the swirling currents of change, to chase every new trend and possibility. Yet paradoxically, these are precisely the moments when it’s important to anchor ourselves to fundamental first principles – the bedrock truths that have governed success and failure throughout EVERY cycle. Consider the startup ecosystem today. We're witnessing a perfect storm of transformative forces: artificial intelligence is threatening to reshape entire industries, capital is being concentrated in unprecedented ways among the largest firms, and thousands of startups are emerging daily, many treading similar paths with slight variations. The temptation is to view everything through the lens of disruption, to assume all old rules are obsolete. But this thinking leads to dangerous territory. Just as a sailor will rely on their compass and fundamental navigation principles in a bad storm, Founders and Investors need to return to core truths of how businesses work. What creates lasting value? What constitutes genuine product-market fit? How can enterprise value be compounded over time? These questions aren't rendered obsolete by technological change – they become more critical. The current environment, flush with capital and technological possibility, risks what might be labeled a "suspension of disbelief" in basic business principles. Startups have been funded and valued based on narratives and “destination positioning” rather than fundamental business metrics. While this can drive innovation, it also leads to inefficient allocation of resources and ultimately a massive destruction of capital. History has taught us that periods of explosive growth are typically followed by periods of consolidation and destruction. Darwin can go on vacation for short periods of time but he always returns. (Click the link for the whole post....LinkedIn limits word count!) https://lnkd.in/e8ii6GEm