How does accounting of tech startups differ with that of traditional accounting?

accounting for tech startups are used differently as it is concerned with intricate revenue frameworks, capital investment, and research and development. Commonly utilized in tech startups are deferred revenue, subscription revenue and stock-based compensation. The accountants will be required to monitor such metrics as monthly recurring revenue (MRR) and customer acquisition costs (CAC). They also make sure that the accounting standards such as the ASC 606 are met. Niche accounting assists the startups to handle the cash flow and provide valid reports to investors. This practice brings transparency to the financial sphere, financing rounds, and assists tech beginners to sustain growth and compliance in the competitive environment over the long term.