Once these items are completed, you’re ready to start managing financial transactions for your small business. We want to work with you for the long term, but only as long as that’s what you want too. If at any time the relationship doesn’t work for you (or if it doesn’t work for us) let’s have a conversation and see if it’s worth fixing. We don’t send random bills for services you didn’t know you were incurring. Consultations are always free, and if we’re going to start a billable project, we’ll discuss the fees up front. To gain the most benefit from this relationship, it’s important to find the right CPA for your business.

• “For a simple tax return, they might charge anywhere from $375 to $500.
• Accountants who are not specialized in newly formed companies may be missing a new tax credit that can reduce payroll taxes up to $100,000.
• We feel honored to be a part of making the world a better place, even if it’s one debit and credit at a time.
• Plus, tech companies face the added obstacle of competing on a global scale when they may start off no bigger than a local brick-and-mortar business.
• Help us have a productive first consultation by providing some additional information.
• Undergraduate and graduate programs in accounting provide the basic foundation for meeting the education requirements for licensure.

Startups often face unique accounting and financial challenges at every stage of their growth. As an aspiring CPA, you might want to consider an online accounting degree program, which offers convenience and flexibility, especially when working full time while going to school. You might like to consider the Online Master’s of Accounting (iMSA), offered by the University of Illinois Urbana-Champaign.

Why is accounting important for startups?

Early-stage companies are not all the same – a SaaS business is very different from a biotech company, and a hardware company is not at all similar to an ecommerce company. Some CPAs are specialized in particular verticals – ours is high-growth, VC-backed companies. From SaaS to healthtech to hardware to ecommerce, we have specialized CPAs and accountants on staff who can help your company navigate the VC landscape and manage your growth. If you are running a SaaS startup, and you sell a 12-month contract to a client for $120,000 in January, on a cash basis you record $120,000 and that’s it. You don’t get any more revenue from that client for the rest of the year.

These startups are taking advantage of the convenience, security, and portability of crypto assets for vendor and contractor payments, smart contracts, decentralized applications, and more. Increasing numbers of startup companies are using cryptocurrencies for operational, transactional, and investment purposes, and the wide range of these transactions creates a need for crypto accounting. Fast growing CPG companies should have specialized accounting help to deal with complex issues related to inventory, BOMs, gross vs net revenues and more. Learn more about our online offerings for specific, high-growth industries below – or get in touch with us to learn more.

Common Mistakes to Avoid When Hiring a Startup CPA

The Bureau of Labor Statistics (BLS) projects employment for accountants and auditors to grow by 7 percent from 2020 to 2030, which is as fast as the average for all occupations  [5]. It’s important to note that states have different CPE requirements and deadlines. For example, states have different requirements for the number of hours of ethics CPE you’ll have to do, and accept various types of education. It’s always best to check your state’s rules and regulations before starting your CPE. Many states have passed versions of the Uniform Accountancy Act (UAA).

• Remember, a good CPA should serve as an extension of your business – and investing in a quality one is likely to return the investment over time.
• For high-growth startups, especially ones that expect to raise venture capital, management needs access to high quality financial statements.
• The IRS doesn’t rank the preparers on its list, but it does include credentials and qualifications.
• Consultations are always free, and if we’re going to start a billable project, we’ll discuss the fees up front.
• Firms that rely on automated accounting systems or who provide limited services can easily miss potential problems, like invoicing issues, double payments, and missed collections.
• To avoid these issues, the startup community should look for these five criteria when hiring a startup CPA.

In addition, if you’re considering going public, it’s a smart move to have your accounting in order before you file your registration statements. The required years of experience you need to take the CPA Exam vary from state to state, but most call for at least two years working in public accounting. Some states will accept other experiences, such as working in government or industry, but you will generally need more years of such experience.

SaaS – Accounting and more for high growth SaaS companies

Clients who have worked with Kruze have collectively raised over $15 billion in VC funding. VCs and Angels do want to be assured that their financials are presented in compliance with GAAP. This is as user-friendly and adaptable as possible to suit most SaaS businesses. Designed for a startup with multiple departments; use startup cpas to budget for hiring and non-FTE spend. Please note, our expertise is not focused on LLCs or bootstrapped companies. Because your CPA would be handling sensitive business data, it’s essential that you ask the right questions before you hire them, rather than finding out they aren’t a good fit for you when it’s too late.

They should be familiar with the financial modeling, tax requirements, and reporting for your industry. They should also have knowledge of your internal operations and other nuances to help reduce your tax liabilities or mistakes that could trigger an IRS audit. CPAs who specialize in startups should be familiar with startup regulatory challenges, pertinent paperwork, and investor or board reporting requirements. This also means that a CPA’s pricing scale is typically higher than a general accountant. CPAs may offer a greater range of accounting services and can take on a more advisory or strategic role in your startup’s finances. Peena works with our clients to provide them support in the day to day operations of their business.