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First 90 Days Of Startup Finance - A CA Firm’s Checklist

First 90 Days Of Startup Finance - A CA Firm’s Checklist

Why Startups Fail Financially Within the First Year
 
You have a brilliant idea. You have a co founder. You have your first few customers. But here is the uncomfortable truth: 90% of startups fail, and poor financial management is one of the top three reasons. Not the product. Not the market. Simply not having a proper finance function from Day 1.
 
Most founders think accounting is just "paying someone to file GST returns once a quarter." That is a dangerous myth. By the time you realise something is wrong mismatched ITC, missed TDS deadlines, incorrect invoicing you are already looking at notices, penalties, and a messy due diligence report that scares away investors.
 
At CA Dhiraj Ostwal & Co., we have guided over 200 startups through their first year from a two person bootstrapped team to funded ventures. What we have learned is simple: finance is not an afterthought; it is a growth engine.
Below is the exact checklist that CA Dhiraj Ostwal uses when a new startup comes on board. Follow it, and you will not just survive you will be investor?ready.
 
Day 1–30: The Foundation Phase (CA Dhiraj Ostwal’s Non Negotiables)
 
The first month is not about complex tax planning. It is about getting the basic plumbing right. If you skip this, everything else will leak.
 
Week 1: Entity Setup & Bank Account
1. Choose the right business structure, Private Limited, LLP, or Partnership. At CA Dhiraj Ostwal, we analyse your funding roadmap, liability exposure, and compliance appetite before recommending a structure.
2. Open a separate current account. Never mix personal and business expenses. This is the #1 mistake we see. We will give you a one?page SOP for your team.
3. Apply for PAN and TAN. It is mandatory for deducting TDS even if you have no employees yet. We file the application online done in 3 working days.
 
Week 2: GST Registration. The Right Way
1. Determine if GST registration is mandatory
2. Voluntary registration
3. Procedure for registration file FORM GST REG 01 on the common portal
 
Week 3: Choose the Right Accounting Software
1. For small startups (under ?50 lakh turnover) Zoho Books or Odoo (cloud based, affordable).
2. For growing startups,Tally Prime with cloud access or Busy.
3. Our role at CA Dhiraj Ostwal, we configure the chart of accounts, set up GST rate masters, and train your team (2 hours, remote or in person). No expensive mistakes later.
 
Week 4: First Invoice & Payment Collection
1. Create a professional invoice. Must include: GSTIN of both parties, HSN/SAC code, tax rate, due date. We provide a ready?to?use invoice template.
2. Set up payment links, UPI, NEFT, or payment gateway. Delayed collections kill startups faster than low sales.
3. TDS on payments. If you pay a consultant or freelancer above ?30,000 in a year, deduct TDS (usually 10%). CA Dhiraj Ostwal issues the TDS certificate and files the quarterly return no defaults, no disallowances.
 
 
Day 31–60: The Compliance Phase (Where Most Startups Slip, And We Catch Them)
Now that the basics are in place, you move to recurring tasks. This is where most startups start missing deadlines. At CA Dhiraj Ostwal, we never miss a deadline.
Week 5: First GST Return Filing (GSTR 3B)
 
1.Deadline
By the 20th of the month following the tax period.
 
2.What you need? All sales invoices (outward supplies), all purchase invoices (inward supplies), and a summary of ITC claimed.
 
3. Common mistake – Claiming ITC on expenses that are not business?related (e.g., personal vehicle fuel). Our team reviews every single entry before filing. We also match your books with GSTR 2A automatically using professional reconciliation tools.
 
4. Penalty for late filing – ?50 per day (?25 CGST, ?25 SGST) maximum ?10,000. We file 3 days before the deadline – always.
 
Week 6: TDS Return (Form 26Q)
Even if you deducted ?1 TDS – You must file a TDS return quarterly.
Quarterly deadlines – 31st July, 31st Oct, 31st Jan, 31st May.
What happens if you miss it? Late filing fee of ?200 per day, plus disallowance of the expense under Section 40(a)(ia). At CA Dhiraj Ostwal, we have never missed a TDS return for any client. We send you a reminder 15 days in advance.
 
Week 7: Review of Payment Terms & Vendor Agreements
Review at least 5 major vendor contracts. Are you paying too early? Are there late payment penalties?
Negotiate better terms. Move from "advance payment" to "15 days credit" using the data from your cash flow statement.
CA Dhiraj Ostwal’s value
We prepare a simple ageing report showing which vendors you pay on time and which are delayed. Then you negotiate from a position of data, not guesswork.
Week 8: Monthly MIS Report
Your Startup's Health Card
What is an MIS report? – This is a one page report which will display: Total sales, Total expenses, Net profit, GST liability, TDS payable, and Cash in bank.
Why it matters? Otherwise you're flying blind. You will not know if you are profitable or not until it's too late.
How CA Dhiraj Ostwal does it?  We pull data out of your accounts, reconcile with bank statements and flag any anomalies (e.g. “your ITC claimed is 30% more than GSTR 2A notice is likely to be issued”).
 
Day 61 – 90: Growth Phase (Optimisation & Protection)
By now, your finance function is alive. The next 30 days will be a time of optimisation and protection, and this is where CA Dhiraj Ostwal's experience will make a difference.
This week we will finish the ITC Reconciliation (GSTR 2A vs Books).
Why this is critical. The GST portal shows only those purchase invoices that your suppliers have filed. In case they don't file, you cannot claim ITC.
 
Step?by?step procedure we follow:
Download GSTR 2A, directly from the portal through our automated tool.
Look at what you bought vs your purchase register (line by line).
Error detection (Mismatches – Invoices missing in GSTR 2A).
Provide you a report containing supplier names and quantities.
You follow up; we send a draft of a polite reminder that you can forward.
Only claim matched ITC in the subsequent GSTR 3B.
No supplier filed ITC you claim ?2 lakh ITC. Department notifies with a 24% interest. In the past 2 years alone we have been able to save our clients more than ?50 lakh on such claims.
 
Week 10 is the first week of Fundraising Readiness.
Even if you don't need to raise money now, “Investor Ready” your books. It is never too late to have a great opportunity.
3. What investors want – Last 3 months' bank statements, last 6 months GST returns, TDS returns and a clean cap table.
3. CA Dhiraj Ostwal's checkliste. We check all the documents before you share. There are no over due filings, no unmatched ITC, no TDS defaults, no personal expenses in the business account. By having impeccable financial hygiene, our clients have been able to raise funding from angels and VCs.
 
Week 11: Direct Tax Planning (Advance Tax)
One of the common mistakes that startups make is by not paying the advance tax in installments (April 15th, September 15th, December 15th, March 15th).
2. Penalty for missing, interest as per Section 234B and 234C (1% per month on the shortfall).
3. Our role, we estimate your annual profit from 2 months of real data and let you know with precision how much advance tax you are required to pay and when. We even include the payment link with you! No last minute surprise, no interest.
 
Week 12: Review & SOP Development
As an example, make a Standard Operating Procedure (SOP) for your finance team. “Upload invoices every Monday; reconcile bank every 5th of the month; prepare GSTR1 every 10th of the month”.
2. The reason why SOPs are important. It does not have to be the new accountant having to start from scratch. CA Dhiraj Ostwal writes this 2?page SOP for you customised to your business.
3. Plan next quarterly review. Finance is NOT a one off installation. We are available to you every quarter (either face to face or on video) to discuss compliance, identify risks and recommend optimisations.