*record scratch* Yep, that's me, on the Megatron in Times Square. You're probably wondering how I ended up in this situation.
It was actually quite a big deal, and so much fun to be a part of our client’s enormous milestone. This month I’ll share more about this event and the client that brought me here, Bill Alessi. I’ll also share how accounting needs typically change as a business goes from startup, to small business to publicly traded company. But first...
Housekeeping
March 17 - Taxes are due for some business types (partnerships, multi-member LLCs, and S-Corporations). Businesses organized as partnerships, including multi-member LLCs, and S-Corporations need to file Form 1065, or 1120S by March 17
Nasdaq Closing Bell Ringing Ceremony
This was a pretty wild experience, and one I aspire to do again with my own company someday. IQ Bookkeeping started working with Bill Alessi back in 2022, supporting his business as he cultivated a plan for the software developed by his company, Alpha Modus.
Last summer, the Alpha Modus organized their board and upgraded to internal accounting, which is always a bittersweet moment for the outsourced bookkeeper. We’re always sad to see the client go, but so happy to have supported them on their rise to this next level. Bill generously decided to include me in this bell ringing ceremony precisely because I had been his accounting team through this growth journey.
From Scrappy Startup to IPO
Bookkeeping and accounting needs for a growing business are as unique as fingerprints, but like the loops and whorls of fingerprints, there are some predictable patterns that correlate with stages of growth.
The Startup: This term covers a lot of different business models whose needs vary tremendously. For example, a tech startup that’s backed by venture capital probably has internal accounting right out of the gate, but most startups that we encounter are self-funded solo-preneurs. In this category, the businesses that are best suited for a formal bookkeeping system are those looking to grow. For hobbyists who enjoy keeping things at side-hustle status indefinitely, tracking transactions in an Excel template is probably sufficient. But if your goals land somewhere between ‘turning your side hustle into your fulltime gig’ and ‘global domination’, a QBO Simple Start subscription is the right choice. (this link will save you some money on the first year of your subscription, and full disclosure, we also get a small referral fee) IQ Bookkeeping offers QBO training so you can DIY the right way from the start. If DIY is not your thing, our basic monthly bookkeeping will give you the on-going support to keep you focused on growth in your zone of genius.
The Growing Small Business: This is where we find most of our clients. These businesses have a foothold in the market and are creating some reliable recurring revenue; now they have to create systems, hire, and outsource. Bookkeeping is an absolute necessity for any business, but at this stage of growth, spending your time learning and then doing the bookkeeping is only prudent if you’re running a bookkeeping firm. However, hiring an internal bookkeeper or accountant is typically too big of an expense at this stage. Finding an outsourced bookkeeping team that is accountable and invested in your success is the most cost-effective and efficient choice for this stage of business. As a business progresses through different growth milestones, their needs also tend to shift and expand. An outsourced accounting firm can customize and add on more services to accommodate these changes; i.e. invoicing support, paying vendors, class tracking, payroll, projections and analysis, all the way up through full-service accounting. I can’t speak for all bookkeeping firms, but our clients gross revenue typically starts around $75k annually, and currently go as high as $9M.
When You Need an Internal Accounting Department
Revenue
Somewhere north of $9M gross revenue, there’s usually enough revenue and accounting work to justify hiring an internal accountant. Some businesses with complex accounting needs, like construction, may need to prioritize internal accounting much earlier, while a service provider or content creator may function perfectly with outsourced accounting indefinitely.
IPO
Revenue isn’t the only criterion to gauge whether you should hire internal accounting. IPO stands for “Initial Public Offering” and this is the process of offering shares of a private corporation to the public in a new stock issuance. This process is typically a great way to raise capital, and it requires abiding by rigorous SEC regulations and many other finance-related specifications. For Alpha Modus, the complexities around preparing for the IPO process required experienced fulltime staff. Plus, you get this fabulous party thrown for you in NYC.
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NYSE vs Nasdaq
Should you ever be invited to a bell ringing ceremony, it’s critically important that you know the difference between the New York Stock Exchange (NYSE) and the Nasdaq Stock Exchange, as I did not. They are 2 entirely different stock markets. NYSE is downtown in the financial district near Wall St., and Nasdaq is a completely different stock exchange located in Times Square up in midtown. To be clear, Bill did send me an invite with the correct address, but I was so confident that Google maps had me routed to the one and only stock exchange in New York City that I never even consulted it. I showed up with my ID and my badge to the guest entrance at the NYSE and was confronted with,
‘You’re NOT on the list.”
Snow began falling as a wave of shame and panic washed over me. I started running through cobblestone streets in my highest of high heels with my luggage in tow. Fortunately, I started my journey early enough that the universe rewarded me with 2 very kind New Yorkers who guided me through the subway system. I arrived only 15 minutes late. You may notice how shiny my forehead was as I was quite sweaty from all the shame and panic, but arguably, it does makes my face pop that much more on the Megatron, so… worth it.
Bill Alessi and Alpha Modus
As the Founder and Chief Executive Officer of Alpha Modus Holdings, Inc. (Nasdaq: AMOD), I have dedicated my career to pioneering data-driven technologies that enhance the consumer retail experience. In 2014, I established Alpha Modus, serving as its initial seed investor and driving its strategic vision.
Our innovations quickly gained industry recognition, with Alpha Modus being named an IBM Beacon Award Winner in 2016 for our excellence in AI-powered solutions. Further solidifying our place in the tech industry, IBM recognized Alpha Modus as its "Born on The Cloud - Start-Up of the Century," a testament to our transformative impact on the retail and financial sectors.
My entrepreneurial journey began with a focus on real estate, small-cap equities, and technology markets. Notably, my leadership played a pivotal role in the operations of Andover Brokerage, a firm that was instrumental in pioneering the electronic day trading era.
At Alpha Modus, we are committed to being at the forefront of AI-driven innovation, revolutionizing the way consumers interact with brands at the point of sale while striving to deliver measurable ROI for retailers and brands. Our transition to a publicly traded entity has unlocked new opportunities for growth, investment, and expansion into emerging retail technologies.
Key Achievements:
Founded Alpha Modus in 2014, leading its growth into a Nasdaq-listed company.
IBM Beacon Award Winner (2016), recognizing Alpha Modus’ excellence in AI-powered solutions.
Recognized by IBM as the "Start-Up of the Century," highlighting Alpha Modus’ transformative impact.
Played a critical role in the operations of Andover Brokerage, a pioneer in electronic day trading.
Guided Alpha Modus through a successful SPAC merger, positioning the company for sustained growth.
When I asked him to share about the secret to his success, he quoted Bruce Lee, “Failure only happens when you stop trying.” He then added, “What got me where I am with Alpha Modus and our mission was being committed by investing in a well thought out gameplan, unwavering persistence and a lot of luck.... but luck favors the persistent.”
Check out Alpha Modus on their website
Thanks for reading!
If you enjoyed this, please tap the heart or drop a comment. Positive reinforcement is so effective and I always want more of it.
If you want to discuss bookkeeping questions, hop on my calendar for a no-cost discovery call, I’d love to chat.
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Love this story of you running through NYC! Very Carrie Bradshaw, Kendall. Congrats to Alpha Modus and to you. What a gesture to include you in their big day. Love it. Christine
Great Job, IQBK!