Whether you love numbers or avoid them, being in control of your finances is non-negotiable when you’re running a startup. And there are a handful of myths that keep coming up – beliefs that slow founders down, cost them money or leave them exposed when it matters most.

Here are the ten we see most often, and what to do instead.

Myth 1: Numbers Aren’t My Thing

That’s understandable, but it’s not an excuse that works in business – particularly for startups that need to grow fast and attract outside capital. After poor product-market fit, running out of cash is the second most common reason startups fail.

At a minimum, check your P&L and cash flow weekly and plot your cash position six months out. At a more advanced level, metrics like burn rate, runway, MRR, CAC and LTV give you real control. We cover what these startup metrics mean and how to calculate them in detail.

“Rarely do I find people in between with a laser focus on the few financial metrics that will really make a difference for their startup.”

• Greg Dickens, Startup Mentor

Myth 2: Business Structure Doesn’t Matter – We Can Fix It Later

This is one of the most expensive myths to hold onto. The right structure lets you make tax-efficient choices, make decisions fairly with co-founders and protect yourself legally if things go sideways. A pty ltd company sends a very different message to a sole trader or partnership – in court, to investors and to the ATO.

Changing structure later is costly and time-consuming. Overwhelmingly, we recommend setting up a company and a discretionary trust – but the right answer depends on your situation.

“It can be tempting to go with the cheapest, quickest option of setting up as a sole trader – but it’s well worth thinking about which structure will have the best long-term benefits and reflect your future goals.”

• Jill McKnight, LegalVision

Myth 3: I Can Save Money by Paying Myself as a Contractor

Not usually. The ATO’s personal services income rules mean that if you’re paying yourself – or others – as contractors when most of their income comes from the startup, the business may still owe superannuation and WorkCover on top of those contractor fees.

Similarly, loaning company money to yourself is fine as long as it’s repaid before the end of the financial year. Leave it outstanding and the ATO’s Division 7A rules will treat it as a dividend, subject to income tax.

Myth 4: My Business Can’t Save Money

It can, and it should. Your cash runway is what keeps you alive – so protecting it is one of the most important financial habits you can build. Reinvest consistently into a savings buffer, keep a close eye on discretionary spending and make smart trade-offs on equipment, office space and subscriptions. You don’t always need the most expensive option to get the job done.

Myth 5: The Right Financial Model Will Make You Successful

A solid financial model is valuable – particularly when you’re planning to expand or raise capital. But the model itself isn’t the point. The process of building it is. Putting numbers to your operational plan forces you to ask whether you can actually afford what you’re planning, and whether the plan makes sense in the first place.

“When we look at an early-stage financial model, the one thing we know for sure is that it is wrong. But a well-developed financial plan reveals the business’s fundamentals and the entrepreneur’s thought process.”

• Robey Miller, Alpha Edison

Myth 6: Dad’s Accountant Is Good Enough for My Taxes

If your accountant is a bit old school, they’re probably a bit too old school for what you need. There’s a real difference between an accountant who files your tax return once a year and one who understands startups, spots opportunities and can advise you as you scale.

“Do you want ‘any accountant’? If you’re engaging someone professionally, why not make it someone who gets your type of business – who understands startups and fast-growing businesses and can therefore see opportunities outside the scope of just doing your tax return.”

• Mike Budnow, Standard Ledger tax partner

Myth 7: Good Help Is Expensive

It used to be. But the market has changed significantly and you no longer have to just accept high fees for legal, accounting or R&D advice. There are now specialist providers – including fixed-fee and scalable models – that let you outsource as much or as little as you need, at a price that grows with you rather than ahead of you. Shop around.

Myth 8: Xero Means I Can Handle Everything Myself

Xero is genuinely excellent. But as you grow, doing the bookkeeping yourself stops being a smart use of your time. Your focus needs to shift to the bigger picture – and that means outsourcing your bookkeeping and payroll to someone who can handle it accurately and efficiently, so you can get back to running the business.

Myth 9: My Business Isn’t Big Enough for a CFO

You might not need one full-time, but there’s a point where most growing businesses benefit from having someone thinking ahead – about funding, forecasting and financial strategy. A virtual CFO gives you access to that thinking on an hourly or part-time basis, at a cost that scales with you.

“We started working with a CFO adviser early on and we’ve gone through quite an evolution with them to access different types of funding, which has been vital to our survival.”

• Shane Thatcher, Choovie

Myth 10: Raising Capital Means We’ve Made It

Raising capital is a milestone – but it’s not the destination. The real question is what you do with it. How you deploy that capital to grow the business, deliver on your investors’ expectations and build toward the exit or outcome you’re actually working toward.

“I’ve seen many founders who focus on big valuations too early in their startup: it’s fool’s gold. The best way to ensure we raise the capital we need is to build an awesome business. If we get this right, we will have more funding than we ever need.”

• Richard Kimber, Daisee