Learn everything you need to know about choosing the right accountant to help manage your startup's finances.
.png)
Finding an accountant who understands your business model, aligns with your goals, and has relevant experience is vital to your startup's success. Yet, the process of finding such an accountant can feel daunting. So, where do you begin?
Stay with us as we demystify the process, giving you the confidence and knowledge to make this critical business decision.
To fully appreciate the importance of choosing the right accountant for your startup, it's crucial to understand the myriad financial tasks and challenges that your business may face. This goes beyond tax planning and budget management. The right accountant will help you develop a robust financial strategy, ensuring your young venture stays on course toward success.
Accountants aren't just number crunchers. They're well-versed in compliance requirements and can guide you through the labyrinth of startup regulations. This ensures your business is on the right side of the law and gets the maximum tax benefits, granting you peace of mind and freedom to focus on what you do best—innovating and driving your business forward.
Moreover, an accountant will handle your financial reporting, ensuring all financial activities are transparent and accountable. This will inform you about your business's financial health and build trust with your investors.
Before you dive headfirst into the accountant selection process, you must identify your startup's specific accounting needs.
First, consider the stage of your startup. If you’re early stage (pre-series A), the main reason you need accounting is to file taxes. At this point, you can get away with an accountant that does quarterly bookkeeping. Once you have a board, you will need monthly bookkeeping to produce financial statements for board meetings.
Next, consider the role of financial software in your operations. Do you need an accountant who's proficient in certain applications like QuickBooks? Typically, this software acts as a single source of truth which will have all of your expenses and receipts in one place and may be audited down the road.
Then, there's tax compliance. Navigating the complex tax landscape can be challenging. Your accountant should ensure you follow all regulations, sparing you from penalties and maximizing tax benefits. For example, a startup accountant should make sure you file your R&D Tax Credit, Delaware Franchise Tax, and 1099s for contractors.
Next, think about budget management. Your startup's survival hinges on how well you handle your funds. An accountant with budgeting expertise can help you avoid cash flow problems and stay financially healthy.
When you're screening resumes to find accountants, look for key qualities. These qualities will ensure you gain freedom in managing your startup's financial health.
Finding the right accountant for your startup isn't just about knowing what to look for; it's also about knowing where to look. To help you navigate this journey, here are four places to start:
After identifying potential accountants from various sources and putting them in your tracking system, it's crucial to thoroughly vet these candidates to ensure they're a perfect fit for your startup. Use interview techniques to get a feel for their skills, startup understanding, and whether they're a cultural fit. Don't just ask about their experience; get them to demonstrate it. Inquire about their past experiences, especially in startups, and how they handled specific situations.
Do reference checks; don't skip this step. It's an opportunity to get third-party insights into their capabilities and work ethic, and it can also save you from future trouble.
Assess their understanding of your startup's unique needs and challenges. The right accountant should understand the startup ecosystem, your business model, and your vision.
Choosing the right accountant for your startup isn't just about crunching numbers; it's about securing a trusted navigator for your financial journey. It's about picking a co-pilot who can steer your business through the storms of uncertainty and onto the shores of success.
Remember, the right accountant isn't merely a budget balancer, they're a cornerstone to your startup's future.
So, take your time, do your homework, and find that perfect fit. Your startup's bright future is worth it.
Founder Exclusive Deal:
Up to 3,500 bonus and 3% cash-back on all card spend [3], 6 months off payroll, and 50% off bookkeeping for 6 months, free R&D credit
Get StartedFounder Exclusive Deal: Up to 3,500 bonus and 3% cash-back on all card spend [3], 6 months off payroll, and 50% off bookkeeping for 6 months, free R&D credit
*Every is not a bank. Banking services provided by Thread Bank, Member FDIC. The Every Visa Business Debit Card is issued by Thread Bank, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.
For Every customers with deposit accounts on Thread Bank, your deposits qualify for up to a maximum of $2,500,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at go.thread.bank/sweepdisclosure and a list of program banks at go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions on the sweep program.”
**Terms and conditions apply to the Cashback rewards program. Cashback earned will be credited to your account daily. ATM transactions, the purchase of money orders or cash equivalents, and account funding made with your debit card are not eligible for Cashback. Please refer to the Rewards Terms and Conditions for more details. No minimum opening deposit or minimum balance required.
***Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions regarding the sweep program.
[1]Yield is an annualized 4-week T-bill rate when held to maturity as of [08/21/24] [date must be within the last 7 days] . The rate shown is subject to price fluctuation and is net of fees. T-bills are purchased at a discount to par (par= $1,000), with the price being subject to market fluctuation. The amount of T-Bills available at a particular yield will depend upon the sellers’ offer size; any remaining cash balance after the purchase may not earn the same yield. In general the bond market is volatile, and fixed income securities carry interest rate risk. Fixed income securities are subject to increased loss of principal during periods of rising interest rates. Fixed income securities also carry other risks, including inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties.
[2]Yield as of [08/21/24]. The SEC yield for a money market fund is calculated by annualizing its daily income distributions for the previous 7 days. You should consider the investment objectives, risks, charges, and expenses of a money market fund carefully before investing. This and other information is found in the fund’s prospectus. Please read the prospectus before investing. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Yields fluctuate and past performance is no guarantee of future results.
[3] Atomic Invest LLC (“Atomic”), through a clearing relationship with Pershing LLC (“Pershing”) offers a cash sweep program. Funds in transit to or from Program Banks are generally not FDIC-insured. The Sweep Program is administered by Pershing, LLC. Deposits at each Program Bank are insured by the FDIC up to $250,000 for each insurable capacity. Based on eligibility criteria, the two FDIC-insured programs (“Bank Deposit Programs”) offered are 1) Dreyfus Insured Deposits (DIDI) and 2) Liquid Insured Deposits. Funds deposited into each sweep program, in aggregate, are eligible for up to $2,500,000 of FDIC insurance. The sweep programs can be configured so that once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity at up to ten Program Banks), then the next Bank Deposit Program is initiated. Although certain types of accounts, such as trust accounts may be eligible for additional FDIC insurance based on the number of beneficiaries, funds will be allocated to each Program Bank in such a way that provides up to $250,000 of FDIC insurance for individual accounts and $250,000 of FDIC insurance for trust and other corporate account types, in each case per Program Bank. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through the Atomic Invest account may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of the Atomic Invest account, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see Pershing’s Terms and Conditions and the Atomic Invest Form ADV Part 2A.
Every, Inc. has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Every, Inc.. Every, Inc. is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Neither Atomic Invest nor Atomic Brokerage, LLC (FINRA registered broker-dealer and member of SIPC), nor any of their affiliates is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal.
Before investing, consider your investment objectives and the fees and expenses charged by Atomic Invest and/or Atomic Brokerage. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest and/or Atomic Brokerage, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Custodial and clearing services are provided to Atomic Invest and Atomic Brokerage by Pershing LLC.
