accounting services for startups

Essential services, from day-to-day expense management to expert financial statement preparation. An ideal client has a budget of at least $1000/mo and is willing to invest more in the finance function as the company scales. Our clients span the typical “Silicon Valley” style business models and industry focuses, from SaaS to Hardware to Biotech to Crypto … well, you get the picture. As a remote-first company, with offices in several cities like Austin and NYC in addition to our California locations, we are able to take on clients anywhere in the United States.

Are accounting services profitable?

Running an accounting business requires a different set of skills and experience than working as an employee. As with any small business, establishing an accounting practice entails a great deal of work, but as Thomson Reuters notes, accounting firms are currently among the most profitable of all small businesses.

Below we’ll dive into more specific accounting topics for startups. We’ve developed 3 packages geared towards early stage B2B SaaS startups but understand that unique circumstances call for unique solutions and can custom service to fit your needs. If our initial assessment finds the chart of accounts is less than ideal, we’ll make recommendations to improve your accounts to access clearer financial reporting. If you don’t have an accounting system set up yet, we can help get you on track quickly.

Finding a co-founder / early team

And when you start hiring employees to help you accomplish your business goals, you are going to need to figure out how to get them paid in full, and on time. There are few things that can rock the boat more than failing to pay your employees correctly. Although we’d like to believe that our businesses are creditworthy on their own, banks will require a personal guarantee for startups.

In the same way your accountant provides your controller with useful financial information, your bookkeeper sets up your accountant for success. Because of this, eCommerce startup businesses will need software integrations to unify the transactional data coming from multiple channels. While an accountant usually won’t be able to engineer these integrations themselves, they can walk you through the available solutions and help you choose a consultant to deploy them. Accountants’ specialized knowledge can support your startup business in many ways. We’ll cover the various  services startups need from accountants and the things accountants look out for while doing their work. Founder's CPA has deep industry expertise on three industries in the startup space.

FAQs on Accounting for Startups

Startups are also more likely than other small businesses to have distributed teams. Unlike a small business, startups rarely focus marketing efforts on a specific geographic area and will not be bound to a single location. Thus, many startups are finding that maintaining a headquarters is overhead they don’t need, opening them up to employees from anywhere. For instance, a small business might manage their financial data with a simple accounting accounting services for startups software like QuickBooks and their staffing with a simple scheduling software like Homebase. There are many good reasons for the way things work – GAAP (generally accepted accounting principles) has been honed for decades. Even if you think youn’t aren’t ready for investors – you still may need a bank, a line of credit, even a credit card – and you are going to need to produce industry standard (and correct) sets of financial metrics.

  • When you’re just getting started, say, still working at your full-time job or newly established in shared workspace, it’s good to go the DIY route.
  • We know you are smart enough to do this on your own, but you already know that the garbage you put into the accounting books on the last Friday of the quarter, is the garbage that comes back in your board reports.
  • Business owners appreciate the advice we give because they know we have extensive experience helping companies solve their accounting, tax, and business management challenges.
  • 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.

For years, we've served clients in domestic and distant markets with world-class accounting solutions at affordable rates and superb quality. As your startup grows and makes more revenue, your recordkeeping system will become more complex and crucial to maintain. This is why starting with a well-organized system as you run your business is essential.

Accounts Payable

We GET what founders are going through, know the metrics they need to support their growth and VCs and have the experience to help make sure your team has the financial data they need. Good bookkeeping provides entrepreneurs and small business owners with detailed, accurate, timely records that assist decision-making, taxes, and audits. It’s an essential part of good business management and business growth. Much of their time is spent on data entry and tracking down receipts for business expenses to ensure accurate books and compliant financial records.

It offers services for accounting, payroll management, business advisory, technology advancement, taxation, and more. Startups need to build a solid accounting foundation to stay organized, increase efficiency, obtain financing, control expenses and identify possible risks and opportunities for the business. Whether you hire an accountant or opt for other accounting software, you need to understand the basics of startup accounting. The deferred revenue schedule is an important tool to manage cash flow and ensure your startup’s financial statements accurately reflect its position. What's the difference between hiring an accountant vs. a bookkeeper? The best way to look at it is that a bookkeeper will analyze, track and maintain records of your day-to-day transactions in your bookkeeping software.

Our team will have regular defined duties (e.g. weekly, monthly or annually) and you will also be able to scale up our hours as needed for any projects that come up during the year. We work with clients on an ongoing basis and act as an extension of your team. We understand the unique challenges that come with growing a business and have the expertise you need to reach your goals.

  • We can help you evaluate audit firms, select the firm that is best for you, and support you during the audit process.
  • These principles of accounting not only ensure completeness in your accountant’s work, but are also expected by funders who review your books.
  • We've worked with hundreds of high-growth companies over 8 years, acting as their back-office function until they are ready to hire an in-house team.
  • Adjusting entries are generally unrecorded transactions that have yet to occur but will occur at the end of the reporting period to record unrecognized revenue or expenses or to correct any recorded transactions.

Sandeep has a Master’s in Computer Science from Syracuse University and an MBA in Finance from the Haas School of Business at UC Berkeley. 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. 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. These are the Generally Accepted Accounting Principles that are used to standardize accounting practice across the US.

FinancePal eCommerce accountants can help you automate, streamline, and simplify your bookkeeping and accounting—all at an affordable cost, with services completely customized to your business. Bookkeeping is the bread and butter of your business’s financial health, and it’s something you need to keep fresh and up to date. We’ll help you manage your records and your day to day financial admin.

accounting services for startups

A good accountant can tell you where your business is financially. A great accountant can help chart a path for your business’s financial future. With teams in different jurisdictions, there will be different tax and labor laws you will need to follow. Accounting management gets messy as your team and clientele spread across the country or globe. More complex enterprise resource planning softwaresuch as Oracle Netsuite, may even make sense for your startup if you are in the right industry and depending on where your aspirations take you. Becoming a certified public accountant (CPA) takes years of higher education (150 credit hours) and success in an exam as well as continuing education requirements.

With an organization as fast-moving as a startup, it’s important to plan for all contingencies, and your accountant should help you do that. With this information, your accountant can also dig down a little deeper into your operations with unit economics. Your accountant will combine your financial data with inventory and operations data to determine per unit values for each of these and other indicators. This can help you identify areas where you can optimize your product offerings to meet and exceed your goals. It can be hard to stay on track during the year if you don’t have a plan. As your company matures, your board will likely want you to report actual performance against the plan—assessing variance and course correcting is imperative.

  • 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.
  • You can use simple and intuitive accounting software for startups to automate the accounting process and get an up-to-date view of your cash flow.
  • They should be able to explain the reasoning behind each one that they use.
  • Because of this added complexity, it’s important for startups to equip themselves with the right tools out of the gate–such as software and access to professionals.
  • Investors fund startups because they believe that the financial obligations startups take on will be manageable when the startup reaches maturity.
  • The COA lays out all of your assets and liabilities and provides a comprehensive picture of the financial health of your business.
  • We have a strong focus on Entrepreneurs and Early Stage Startup Growth companies with a significant presence in Silicon Beach.