Free checklist

Startup Accounting Checklist

The stage-by-stage finance setup founders use from incorporation through Series A — entity, bookkeeping, payroll, tax, R&D credit, and investor-ready reporting.

Stage

Pre-incorporation

  • Decide Delaware C-corp vs. LLC (default to Delaware C-corp if raising priced equity)
  • Reserve a clean legal name and secure the matching domain + handles
  • Open a business bank account and a business credit card (never co-mingle)
  • Set up a US EIN with the IRS before opening accounts
  • Get a registered agent in Delaware

Stage

Day one (post-incorporation)

  • Issue founder stock and file 83(b) elections within 30 days
  • Sign IP assignment agreements with every founder and early contractor
  • Set up QuickBooks Online or Xero with a startup chart of accounts
  • Set up Stripe / merchant processing with a business bank account
  • Set up AP workflow with Bill.com, Ramp, or Brex
  • Document a corporate calendar (Delaware franchise, 1120, sales tax, payroll)

Stage

First hires & first dollars

  • Set up payroll (Gusto, Rippling, or Deel) and put founders on payroll
  • Register state withholding, SUI, and workers' comp in every employee state
  • Classify workers correctly (W-2 vs. 1099) and onboard 1099s with W-9s
  • Set up Carta or Pulley for cap table and equity grants
  • Switch books to accrual basis with ASC 606 revenue recognition
  • Map sales-tax nexus before crossing economic-nexus thresholds

Stage

Seed round closed

  • Engage a startup CPA for monthly close, tax, and R&D credit
  • Stand up monthly KPI pack (P&L, balance sheet, cash flow, burn, runway)
  • Set up board reporting cadence (typically monthly or every other month)
  • File federal Form 1120 and Delaware franchise (assumed-par method)
  • File Form 6765 + Form 8974 for the R&D payroll-tax credit
  • Document a sales-tax registration plan for nexus states
  • Open a high-yield treasury account for cash above operating runway

Stage

Series A readiness

  • Tighten monthly close to 10 business days
  • Reconcile cap table to issued securities and 409A valuations
  • Prepare a diligence data room: financials, contracts, tax, IP, cap table
  • Engage a fractional CFO for the raise (forecast, model, board narrative)
  • Implement SOC 2 controls if selling to enterprise customers
  • Plan first audit (typically required after Series B)

FAQ

About the checklist

When should a founder start using this checklist?+

Before incorporating, if possible. Most expensive startup-finance mistakes (entity choice, missed 83(b), no R&D credit) happen in the first 90 days.

Do I need to hit every item to raise a seed round?+

No — but you should hit every item in the first three stages. Investors expect clean books, payroll set up, and a Delaware C-corp in good standing before they wire.

What does this cost to implement?+

Software stack typically runs $200–$600/month. A startup CPA retainer for a pre-seed company is usually $400–$1,500/month. Both are cheap relative to what a single missed R&D credit costs.

Can I do this checklist myself?+

The first two stages, yes. Once you have payroll, equity, or revenue, the time cost of DIY almost always exceeds hiring a startup accounting firm.

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Startup CPA-Ready Finance Checklist

A founder's checklist for bookkeeping, payroll, tax planning, financial statements, and investor-ready accounting — what your CPA wishes you had before your next close, board meeting, or fundraise.

  • Bookkeeping foundations & monthly close
  • Payroll, equity comp & 1099 workflow
  • Tax planning: §174, R&D credit, QSBS
  • Investor-ready statements & KPI pack

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Startup Accounting Checklist

The stage-by-stage finance setup founders use from incorporation through Series A — bookkeeping, payroll, tax, and reporting.

Download the Checklist