If you operate in these cutting-edge sectors, check out Founder’s CPA. Pilot is a provider of back-office services, including bookkeeping, controller services, and CFO services. Pilot is not a public accounting firm and does not provide services that would require a license to practice public accountancy. We also pride ourselves on being tax-nerds, and being up to date on tax laws and credits that can help our clients lower compliance costs and reduce their burn rate. Our CPA team has saved unprofitable startups over $30,000,000 through our R&D tax credit work, and we were one of the pioneers in helping startups take advantage of this tax incentive.

Can online accounting services handle tax filing for startups?

Get a full breakdown of costs, including any additional fees for things like tax filings or extra reports. If you’re in tech, retail, or best accountants for startups any other field with unique financial needs, they should be familiar with it. Ask for references or examples of similar businesses they have worked with. They should talk to you in detail about the challenges you face.

II. Customizable Financial Dashboards

While established businesses often use accrual accounting, startups may benefit from cash basis accounting in the early stages. This simpler method tracks income and expenses as they occur, providing a clearer picture of current cash flow. However, as a startup grows and its financial transactions become more complex, transitioning to accrual accounting becomes necessary for accurate financial reporting and compliance. Understanding the nuances of cash versus accrual accounting is essential for making informed decisions.

• Instead, outsourced accounting for startups (or even hiring a remote resource) can be a much smarter choice.
• Look for a firm that has experience working with companies at different stages of growth.
• Accrual accounting involves recording revenue when a sale is made, not necessarily when cash is received, and expenses when they are incurred, not necessarily when paid.
• Escalon Services is serving over 5,000 clients across more than 40 countries, including notable brands like Allbirds, Indiegogo, and Crunchbase.

Their strict 6-step vetting process ensures only 2% of candidates make the cut. The firm specializes in tailored support across 60+ industries while providing real-time insights and scalable services to match your growth. But finding a firm that understands the intricacies of startup accounting is easier said than done. To help you with your search, we have rounded up the 18 best accounting and bookkeeping services that will simplify your startup finances and give you the freedom to focus on success.

A great way to do this is to attend small business events hosted by local organizations. Grew from a 2-person startup to a NASDAQ listed public company. Send an email or make a call outside of regular hours to see if they respond. Ask what types of issues they can help with at odd hours – sometimes it is just basic questions, but it is worth knowing. Are you charging enough to cover costs and still make a profit? Your costs might increase (materials, tools, even rent), and you don’t want to operate at a loss without realizing it.

Kruze Consulting

Consider also whether your accounting firm is willing to change their fees quickly to reflect your changing needs. Whether clients say that their experiences were good is another matter! This is why Finvisor provides professional references, making it easy for potential clients to hear why other businesses choose us. Your financial data will be much more useful if you can act on it without frowning. Having an accountant who can communicate clearly with key people in your business will make it easier to move your business forward.

Founders need an accounting partner who’s done it before for technology startups. Raising venture capital funding, burning millions of dollars, hiring fearlessly while unprofitable – there are not normal, small business activities! We’ve build specific knowledge around the most important accounting issues facing VC-backed startups. Not all accounting firms understand technology, professional boards, the need to regularly raise venture capital funding, and the pressures felt by founders at high-growth companies. I run Kruze Consulting, one of the top accounting firms that works exclusively with startups.

We were early adopters of automated payroll platforms like Gusto and Rippling, and we guided our clients in transitioning to Brex and Ramp—tools that now heavily incorporate AI. It may seem like a long time ago, but we were also among the first to require our clients to use cloud accounting software. Accounting Today has recognized Kruze one of the top 10 fastest growing CPA firms in the US. Yes, accounting services can assist with preparing financial statements, forecasts, and detailed reports to meet investor and fundraising requirements.

Kruze Consulting’s CPAs know what government incentives are available to help cut startups burn – our firm has executed almost $40 million in startup R&D tax credits last year. If you have employees, contractors, or freelancers, managing payroll correctly is a must. If you mess it up, you are looking at penalties, employee dissatisfaction, and a whole lot of headaches.

What Are the Unique Accounting Needs of Startups?

Match your bank statements to your accounting records every month to catch errors, unauthorized transactions, or missed entries. If you have employees or contractors, keep detailed payroll records. These should include payment details, tax deductions, and benefits provided. Keep digital and easily accessible copies of your bank statements.

If your accounting software lacks in any of these departments, your accountant may suggest an affordable upgrade that can save your business time and money. Otherwise, you may find that your accountant already uses financial accounting software ideal for startups and compatible with your setup. Bookkeeping for startup businesses entails processing transactions and keeping daily finances documented and organized.

Understand different pricing models, whether hourly, monthly retainers, or project-based. Transparent pricing is essential for budgeting and builds a strong relationship with your firm. What works for a seed-stage startup won’t necessarily work for a Series B funded company preparing for an IPO. This is why choosing an accounting firm that can scale with your business is so important.

Early-stage companies often operate with limited resources and a constantly evolving business model. This makes sound financial management crucial for survival and growth. Unlike established businesses with predictable revenue streams and established processes, startups require a flexible and adaptable accounting approach. Pilot provides top-tier accounting and bookkeeping solutions built with a deep understanding of early-stage businesses. Being a startup itself, it specializes in supporting VC-backed companies with services tailored to fundraising and SaaS models.

Outsourcing gives you access to a team of experienced professionals with a deep understanding of these areas. This expertise ensures your finances are handled accurately and efficiently, setting you up for long-term success. Massey and Company CPA highlight the essential accounting services for startups, emphasizing the importance of expert support. Another critical aspect is choosing the right accounting method.