Frequently Asked Questions

Effective accounting is crucial for startups, but is it worth the investment? For high-growth startups, especially those seeking venture capital, having reliable financial statements is essential. Not only does it ensure smooth business operations, but it also reduces risks during VC due diligence and increases the chances of passing an IRS audit.

You have two options: handle the accounting yourself or outsource it to a specialized firm that can take bookkeeping off your plate.

For bootstrapped startups or those with less than $200K in funding, we generally recommend managing basic financial tasks in-house until it becomes too time-consuming. With the right systems in place, accounting can be more manageable. We can help you setup the right accounting system and train you on how to use it for a one-time fee.

If you’re ready to focus on what truly matters—strategy, growth, and scaling—our team of financial experts is here to support you. Let us handle the bookkeeping so you can concentrate on driving your business forward.

For many high-growth startups aiming to attract venture capital, having solid financial statements is crucial. It not only supports day-to-day business operations but also reduces risk during VC due diligence and IRS audits.

In the early stages, startups often manage accounting in-house, especially if they’ve raised under $200K. However, as companies grow, they often require more specialized expertise. A part-time bookkeeper might handle routine tasks like transactions and monthly closes, but more complex needs, like preparing budgets and financial statements or navigating tax regulations, call for a seasoned accountant or CPA.

So, when does a startup truly need an accountant? As your company scales, managing financial systems, complying with tax laws, and preparing for VC funding or M&A become essential. CPAs, unlike bookkeepers, offer deeper insights into areas like financial modeling, tax credits, and regulatory compliance, especially valuable during due diligence processes. A skilled CPA can make all the difference in securing funding or closing deals by building confidence in your financials.

For more information about the role of accounting in your startup, consult a professional startup accounting firm.

Bookkeepers focus on recording day-to-day transactions like invoices, payments, and receivables. Accountants, particularly CPAs, offer more comprehensive financial expertise. As your startup grows, you’ll need this expertise for tasks like managing financial statements, creating budgets, developing forecasts, and preparing reports for your board. When you’re raising capital or considering an acquisition, accountants become essential in ensuring your financials are accurate and ready for due diligence, helping you navigate complex financial processes with confidence.

With us you get both, bookkeepers will do your day-to-day transactions while all month end packages and any complex transactions are reviewed by a CPA ensuring that you get the most cost effective solution when funding is needed elsewhere.

For VC-backed startups, hiring an accountant or CPA is highly recommended. With raised funds and extended runway, startups need more than just basic bookkeeping—they require expert guidance on financial metrics, compliance, and investor relations.

Startups often begin by using cloud-based accounting software like QuickBooks to manage basic bookkeeping. As they grow, they tend to outsource more complex tasks like bookkeeping and compliance to CPA firms. By the time they hit Series C funding, most startups bring financial operations in-house, except for tax and audit functions. Our in-house financial team is experts in Quickbooks and NetSuite. We can also sync in any payroll systems as needed.

Startups require more than just basic accounting services—they need a financial partner who understands their unique trajectory and growth goals. A great startup accountant is someone who not only reconciles your books but also provides strategic advice tailored to your evolving needs. They should be accessible, proactive in updating numbers, and able to set up scalable financial systems that grow with your company.

Key qualities to consider when choosing a startup accountant include:

• Speed
• Accuracy
• Reliability
• Expert guidance
• Minimal time commitment from you

Unlike traditional small business accountants, startup-focused accountants prioritize key performance indicators (KPIs) that help drive future funding rounds, not just your cash flow. Choose someone who understands the fast-paced nature of startups and can guide you toward long-term success.