How to Create an Effective Cap Table for Your Company in Salt Lake City, UT

by | Dec 23, 2020 | Financial Services

At the beginning, starting a new company is relatively simple. However, as time goes on, the needs of your organization undergo a rapid change. One of the changes you’ll have to deal with concerns cap table management. Proper management is the key to the success of your business. See what you should be taking into account to strategize for the future.

Reviewing the Cap Table

At its heart, the cap table is a reflection of your company’s balance sheet. Yet, it shows the breakdown of the company’s ownership and voting rights instead. Clearly, this is very important information to keep track of. The problem is that it continuously changes as the company grows. Therefore, you need the information listed in a way that is easy to reference at any time. Cap Table Software can fulfill this need for you.

The Elements of a Good Cap Table

There are certain things that your cap table needs to have. First, you need to list out the equity stakes and corresponding stock ownership. You should also have a clear history of transactions for each investor. Finally, you’ll need columns for data such as exercises of options or conversion of debt. Essentially, you need the cap table to give you a look at the company’s health at any given time.

Use the Right Tools

Many new companies create their first cap table as a spreadsheet. This may work for a while, but there are better solutions out there. Cap table software is a more efficient way of getting the job done. For one, it offers version control to keep track of changes. A software version also allows you to provide information to investors and employees via digital sharing. In the end, using this software will help you update your cap tables in an efficient manner that ensures accuracy.

For further help with cap table management, contact EquityTrack by visiting

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