Comment Re:All this because Clang went Clunk? (Score 1) 203
Regular finance account reporting of how the money is being used should be required. If you can't handle it, don't ask for money.
Such production of reporting and auditing of reports has costs and could consume significant amount of project funds.
Nonsense. If it's a serious project, they should already have an accountant or at least some form of accounting software - once you have that, it's pretty simple to produce a basic cash flow report. Regardless of what your business is, tracking the financials is basic to it. If not just to know whether or not you can afford that widget or software package, because come the end of the year you have to let the IRS know. If the project doesn't have financial tracking, it's a sign to run - far and fast.
If it's a small project (not aiming to go big or anything, and I'm specifically thinking about tinkering projects that are looking for under $10k total), then yes the money for the requisite software could be substantial relative to the project costs.
If it's anything bigger, then yes, they should have to do more. Even so, the cost of a CPA to audit and maintain their books could still make up a substantial portion of the costs for projects under $50k.
So as with anything, it needs to be graduated or may be Kickstarter provides some of those services - e.g they provide a Quickbooks account and a team of CPAs to review them and help the projects out unless the project certifies that it can do it on its own with a reference to their hired CPA (which companies would have no problem with) in exchange for a slightly smaller pinch from Kickstarter.