How to Choose the Best CPA Firm for your Startup or Business

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. These number gurus are considered one of the most essential professionals to small business owners. While the cost savings of doing your own books may be appealing, the reality is that not using a professional bookkeeper for your startup may cost far more than you save in the long run. Sign up below to receive our free eBook on accounting, finance, and tax topics that every startup needs to be aware of to help avoid surprises and headaches down the road. Tax compliance is critical for any business, so we understand if you have questions.

So many startups continue to handle accounting themselves because many cannot afford a full-time CPA. Thus keeping the startup in mind, it’s best to look for services that charge you monthly. It’s better to find a service provider rather than hiring a full-time CPA in-house because paying them a full-time salary, health benefits, and other things will be very expensive.

Quick Checklist to Hiring your Startup’s CPA

While both CFOs and CPAs have expertise in overseeing business finances, there are far more differences than similarities between these roles. Another way to calculate CPA is to divide your total sales revenue by the number of new customers or leads generated. In this case, if your total sales revenue is $5000 and you acquired 10 new customers, your CPA would be $500.

Specifically, ensure that your CPA understands SaaS (or whatever industry verticle you belong to) and has startup experience. Things are already pretty streamlined in big companies and other consulting firms. In addition to being a forthcoming self-starter, the CPA must understand the industry differences in financial modeling, assumption setting, key industry valuation metrics, etc. Launching a startup can be an exciting and daunting experience, especially for first-time founders. Profit and funding play a vital role in the early days of your venture, and bad financial decisions can make or break your business. CPAs who specialize in startups should be familiar with startup regulatory challenges, pertinent paperwork, and investor or board reporting requirements.

Common questions on CPA

Another way to reduce your CPA is by improving your lead generation efforts. This could involve anything from revamping your website to make it more user-friendly and effective, to investing in pay-per-click (PPC) advertising. If your startup’s CPA is higher than you’d like, there are a few steps you can take to bring it down. It’s important to note that there’s no right or wrong way to calculate CPA. The method you choose will depend on your business’s unique situation. That said, it is essential to follow a criteria checklist to find a CPA that matches you and your business goals.

We’re an all-in-one firm, providing accounting, tax planning, bookkeeping, payroll, business coaching, valuation and QuickBooks consulting. An accountant at a large, recognized, and secure company has a much different scope than an accountant at new and unproven venture. Those of us who work with startups don’t spend as much of our time filing financial reports; instead, we’re developing the reporting methodology. A startup’s CPA often acts as a management accountant and internal auditor, reviewing statements with one eye on accuracy and the other on efficacy. CPA is important because it allows you to track your marketing and advertising efforts and determine their ROI (return on investment).

Improve Your Startup’s Cash Flow With These Workforce Management Tactics

We work with multiple client partners (QBO, Gusto, Bill.com, Expensify, Concur, Rippling, etc). So you don’t have to sweat if you’re using software that’s other than QuickBooks. Our dedicated finance experts will be available round the clock to help you through your startup journey. Even if not 24/7, try to find a CPA who can be easily contacted when you face an issue. That being said, they are hard to find as they charge by the hour and may not have very flexible working hours. Startup accounting is time-sensitive, thus, going for an accounting service might be a better option.

Every day new startups are changing sectors such as technology, biotech, finance, retail, healthcare, energy and transportation  When you are just starting out you know how important it is to stay lean and conserve cash. In the early stages startups are trying to bootstrap, stretch limited funds and cut costs wherever possible. Companies that have raised seed and venture capital are not like other businesses. They need finance and tax advice from a CPA who understands the unique needs of high-growth, often times unprofitable, companies. Many of today’s technology companies are fast-growing entities operating in an ever-shifting environment.

Tax and Accounting Firm for Small Businesses Serving Sacramento and Roseville, CA

A finance toolkit for a SaaS startup looks different than that of a mobile app business, for example. If your CPA is comfortable with the software, they’ll be able to immediately begin working with it to analyze your cash flow, inventory management, and pricing. A CPA can interpret your business’s financial reports and provide valuable real-time insights into your income, expenses, and cash flow. This will help you make better-informed decisions about how to grow your business. While passion and hustle can go a long way when starting a new business, smart planning is essential to survival.

On the surface this may appear as tedious busywork, but given tight deadlines, it can quickly become a full-time job just to qualify for a round of funding that will keep the lights on for another month. Not only can we answer those questions, but we do it in a timely fashion, so you can focus on the day-to-day. Of course, there’s no startup exactly like quickbooks desktop vs online yours – but your CPA or bookkeeper should understand the unique challenges and regulations affecting your type of business. At Cook CPA Group, we serve many types of industries, enabling our small business accountants to effectively target your unique needs. In the digital era, accounting software is a lifesaver for small to mid-size businesses.

We strongly suggest you have your books and taxes in order prior to beginning a fund raise from potential investors. Our startup solutions range depending on what stage you company is in. These big 4 accounting firms are the biggest and best public accounting firms on the planet, and their due diligence is no joke. Joshua V. Azran is a Certified Public Accountant (CPA) with extensive experience ensuring clients’ financial success by providing strategic guidance and managing financial functions. Joshua is a visionary leader with expertise in public accounting, corporate finance, strategic management, financial restructuring, business valuation, management consulting, and business development.