Hiring · 5 min read
Startup Accounting Firms: What Services Should They Provide?
Startups have accounting needs that are different from traditional small businesses. They may deal with fundraising, equity, investor updates, rapid hiring, software tools, and cash burn. A startup accounting firm should understand these needs and provide more than basic bookkeeping.
Core services
A startup accounting firm should provide:
- Bookkeeping
- Payroll setup
- Contractor payment tracking
- Tax planning
- Federal and state tax filings
- Financial statements
- Cash burn analysis
- Runway tracking
- Budgeting
- Cap table coordination
- Sales tax support
- R&D tax credit coordination
- Investor reporting support
Why startup accounting is different
Startups often operate at a loss while building products and growing revenue. This makes cash flow, runway, and investor reporting extremely important.
A good startup accounting firm should help founders understand how much cash they have, how long it will last, and when they may need financing.
Software and systems
Startup accounting firms should be comfortable with tools such as QuickBooks, payroll platforms, bill payment systems, expense management software, and reporting dashboards.
