- Seed-to-Series A startups that switched from DIY books to a SaaS-specialist CPA shaved 15 days off fund-raise due diligence (Kruze Consulting Raise Ready Index 2024).
- Five high-ROI services: GAAP revenue recognition, R&D tax credit capture, burn-rate forecasting, Delaware / state nexus compliance, and board-grade KPI packs.
Ready to hire? Comparestartup CPAson Sam’s List!
Why Startup Accounting Hurts More Than SMB Accounting
- ASC 606 deferred-revenue rules turn Stripe cash into liability—confuses runway.
- VC term-sheet covenants require GAAP numbers, not cash-basis.
- Multi-state payroll triggers Nexus the moment you hire remote engineers.
- Missed R&D tax credits leave $250K on the table (IRS Form 6765 limit for startups).
- Cap tables, option grants, and SAFE notes change equity accounting every month.
Five Services a Startup CPA Delivers
1. GAAP Revenue Recognition & Deferred-Revenue Schedules
Under ASC 606, annual SaaS contracts must be recognized ratably; aCPAbuilds the waterfall and syncs Stripe to QuickBooks.
Example:A $30K upfront contract booked as revenue blew gross margin; CPA re-deferred $27K, fixing investor KPI optics.
2. R&D Tax Credit Capture
Startups can offset up to $250,000 in payroll tax via Form 6765.
Example:CPA mapped Jira story points to dev hours, documenting “qualified research” and saving a robotics startup $118K in cash burn.
3. Burn-Rate & 13-Week Cash-Flow Forecasting
A CPA layers expense classes and collections to project monthly net burn.
Example:Forecast flagged a cash cliff four months early; founders tightened CAC and avoided emergency SAFE at 40% discount.
4. Multi-State & Foreign Nexus Compliance
Hiring in CA or NY triggers income-tax filing even if Delaware C-corp.
Example:CPA registered payroll withholding, preventing $5K penalties (California FTB Notice).
5. Board-Grade KPI Pack & Data Room Prep
GAAP P&L, MRR bridge, cohort retention, CAC:LTV, runway chart—delivered monthly.
Example:A VC partner flagged the pack as “best-in-class,” shortening confirmatory due diligence from 30 days to 12.
How much does an accountant cost for a startup?
$600–$2,000 per month for early-stage SaaS; accrual books, R&D credit support included.
Costs rise with multi-entity structure, inventory, or > 3 bank feeds.
Should startups use cash or accrual accounting?
Accrual becomes mandatory for GAAP and Series A diligence; early-seed can stay cash but loses KPI accuracy.
ASC 606 compliance almost always forces accrual by $1M ARR.