Accounting for Startups: The Ultimate Guide

Your accountant should be comfortable with a variety of software to ensure you can choose the best option for your business. Unlike a bookkeeper, a certified public accountant (CPA) can represent your business in a tax audit if your CPA is also an Enrolled Agent (EA) with the IRS. Further, a bookkeeper will generally not be able to help you when it comes to assessing the cost of your operations and finding areas for savings. It’s also an accountant, not a bookkeeper, who would generally conduct internal financial audits. Whereas an accountant comes in to go through your books to help you file taxes and prepare for audits and funding rounds, a bookkeeper does the day-to-day tasks of keeping your books up-to-date.

Ramp partners with accounting firms that specialize in working with startups. Click here to see a list of firms that might be a good fit for your business. We’ve had the opportunity to work with a number of the best accounting firms serving startups – let’s list out some of the best in the business. Last, a startup accountant should have some knowledge or experience with your industry. There is a learning curve to accounting for a new industry, and your startup does not have the time to wait while your accountant gets their bearings with the unique needs of your industry.

“Astute is a value-add Certified Accounting & Business Advisory Firm.”

Clients are matched with a local accountant or bookkeeper who can provide state- and industry-specific guidance in managing their books. Since its founding in 2009, inDinero has been perfecting its offering of an all-in-one accounting service for small businesses. In addition to one of the widest arrays of services, inDinero offers clients access to a team of staff accountants and financial experts, just a click or call away with its easy-to-use dashboard or mobile app.

• This means not only in terms of how long they have been a practicing accountant, but also the volume of their work and how close it comes to your business.
• It is not possible for all start-ups to have a proficient accounting department, as they have limits on budget.
• You may need only account reconciliation services now but will need to layer on financial and cash flow management services later.
• In the same way your accountant provides your controller with useful financial information, your bookkeeper sets up your accountant for success.

Outsourced accounting services range from full-service business management and bookkeeping to management consulting. Our highly trained staff of startup accountants and startup consultants will leverage industry best practices for your venture. Embarking on a new business venture is an exciting and demanding time for a new startup entrepreneur.

Is Running an Accounting Firm the Best Option for You?

All price plans include unlimited accounts and are billed annually upfront with no early termination fee. The Core plan starts at $599 per month with companies with monthly expenses between zero and $30,000. The Select plan starts at $849 per month and includes expedited books delivery and monthly phone reviews. Pilot offers custom pricing that includes support for multiple entities, accounts receivable, and payable reporting along with a fully customizable chart of accounts.

• Just because you received a big check from a customer or paid a large invoice at a given point in time doesn’t necessarily mean that those transactions are attributable to just that point in time.
• Most founders have plenty of expertise in the industry field areas, however, accounting and administrative matters may not be their strength.
• Sign up below to receive our free eBook on accounting, finance, and tax topics that every startup needs to be aware of to help avoid surprises and headaches down the road.
• Another issue you may run into as a startup, particularly if you operate with a remote team, is complying with tax laws across multiple jurisdictions.

Lewis CPA can track and project how much money is due quarterly and annually, file forms and extensions, and even represent you during audits or disputes. The handholding begins as soon as you sign up with Pilot and are immediately assigned a dedicated bookkeeper as your account manager. That person is your point of contact who will come to know you and your business. Clients can contact their team members during business hours from their computers or mobile app and expect a response within one business day or they can schedule a call.

Cost reduction

Our startup solutions range depending on what stage you company is in. Beyond general journal and ledger bookkeeping, an accounting firm also can perform account reconciliation, payroll processing, cash flow management, monthly statement comparison of labor price variance vs. labor efficiency variance preparation, and tax services. It also can provide additional layers of accounting functions to accommodate a growing business’s expanding needs. This is why we are consistently recommended as the best accounting firm for Startups.

For many firms, the monthly fee is based on the level of services you need. You can pay as low as $150 a month for a starter package that includes day-to-day bookkeeping, account reconciliation, and financial report preparation. With some firms, you can then layer on services or choose a mid-tier package that provides for cash flow management, accounts payable and receivable, and expense tracking for $300 to $500 a month. If you are like most of our small business clients, you don’t have time to focus on the bookkeeping, accounting, tax, administrative areas of your startup business. We specialize in small business accounting and tax planning, but we also advise on how to grow your company. Startup accounting services, or outsourced bookkeeping services provide a full accounting department experience, while freeing up time to focus on your startup’s core competencies.

Steps to Build an Expense Policy for Your Tech Company

First and foremost, you will want an accountant experienced with startups. No other kind of business is guaranteed to be as tumultuous as a startup. An accountant should be familiar with the general level of risk startups take and be comfortable managing that risk.

Learning the basics, and asking for the right kind help when things go sideways, will go a long way toward getting your startup’s finances in order. Running a startup means you will have to make a lot of tradeoffs to stretch a fluctuating budget for continuous growth. A startup accountant has the expertise to know where you can and can’t make these sacrifices. With the right financial team on your side, you can navigate the constraints of the startup stage to scale into the business of your dreams.

We’ve worked with scores of outsourced CFOs and accounting firms, and the ones above are some of the best in the business. What sets these firms apart is their focus, their experience and their customer service. Founders and business owners don’t have time to deal with a poor experience, and it’s not fair to founders to work with an accountant who has never seen a particular problem before.