What a startup and SaaS CPA does
A startup CPA prepares the C corporation return and state filings, including franchise and annual report items in the state of incorporation, and tracks research and experimental costs under current law.
They evaluate the research credit and the payroll tax election for qualified small businesses, keep records for founder 83(b) elections and qualified small business stock under Section 1202, and help you move from cash-basis books to accrual, GAAP-basis financials with subscription revenue recognized under ASC 606.
SaaS companies also need a view on where software is taxable for sales tax. For the full tax picture, see our SaaS startup taxes guide.
How to verify a startup CPA’s license
- CPAverify. Search the CPA and firm on NASBA’s CPAverify for license status, issuing state and reported discipline.
- State board. If the state is not on CPAverify, use the board listed in NASBA’s state board directory.
- Peer review for audits and SOC reports. If investors ask for audited financials or customers ask for a SOC 2 report, check the firm in the AICPA Peer Review public file.
Questions to ask a startup CPA before hiring
- How are you handling research and experimental costs after the 2025 law changes for companies like mine?
- Do you evaluate the R&D credit and the payroll tax election, and how do you document it?
- Can you produce accrual, GAAP-basis financials that investor diligence will accept?
- How do you track 83(b) elections and qualified small business stock eligibility?
- Where is my SaaS product taxable for sales tax?
- Can you support an audit or SOC 2 report if investors or customers ask?
Free checklist
Fundraising Diligence Finance Checklist
Red flags
- Cash-basis books only, with no plan to get to GAAP before a raise.
- An R&D credit offered purely on contingency with no documentation plan.
- Unaware of the research cost changes in the 2025 tax law.
- No view on sales tax for SaaS.
- No license you can find on CPAverify or the state board.
Why clients choose Your Virtual CPA
- Licensed CPA firm working with startups and SaaS companies nationwide, virtually.
- Startup services: startup accounting, C corp returns, fractional CFO, SOC 2 audits and SBIR/STTR audits.
- Transparent fees quoted upfront, in writing.
- Free initial consultation before you decide.
How it works with us
Best for: C corporation startups and SaaS companies from formation through fundraising.
- Free initial consultation. Tell us your stage, funding plans and what diligence will ask for.
- Fees quoted upfront, in writing. Scope and fees in an engagement letter before work starts.
- Review. Entity documents, equity records, books and prior returns.
- Clean up and comply. GAAP books, research cost treatment, credit and returns.
- Ongoing. Monthly close, board-ready reporting and tax planning.
Bookkeeping app vs startup CPA vs fractional CFO
| Bookkeeping app | Startup CPA | Fractional CFO | |
|---|---|---|---|
| Tax compliance (federal, state, franchise) | No | Yes | Coordinates |
| Research costs and R&D credit | No | Yes | Coordinates |
| GAAP revenue recognition (ASC 606) | No | Yes | Reviews |
| Fundraising model and forecasts | No | Sometimes | Yes |
| Board reporting | Basic reports | Financial statements | Yes |
| Audit readiness | No | Yes | Yes |
Expert CPAs. Personal attention.
Raising, hiring or cleaning up before diligence? Request a free initial consultation and talk to a CPA about your startup.
Frequently asked questions
Verify the license on CPAverify or your state board, then ask how the CPA handles C corporation returns, research and development costs, the research credit, equity and investor-ready financials. Experience with venture-backed or SaaS companies at your stage matters more than location.
Usually from formation or the first hire. Early decisions, such as entity type, 83(b) elections for founder stock and how research costs are tracked, are hard to fix later. A CPA becomes essential before a fundraise, when diligence asks for clean financials.
The 2025 tax law restored an immediate deduction for domestic research and experimental costs for tax years beginning after 2024, with transition options for costs capitalized in earlier years. Foreign research costs are still amortized. Ask your CPA how the rules apply to your returns.
Qualified small businesses can elect to apply part of the research credit against payroll taxes, using Form 6765 with their income tax return. Eligibility depends on gross receipts and how long the company has had them. A CPA checks eligibility and documentation.
An 83(b) election lets you include restricted stock in income when it is granted rather than as it vests. It must be filed with the IRS within 30 days of the transfer, and the IRS now offers Form 15620 for it. A missed election is generally not fixable, so CPAs ask for copies.
Often both, at different times. A CPA handles tax compliance, the research credit and GAAP financials. A fractional CFO builds forecasts, fundraising models and board reporting. See our fractional CFO page and the table above.
It depends on stage, entity count, payroll, states and whether you need GAAP financials or an audit. Your Virtual CPA quotes transparent fees upfront, in writing, after a free initial consultation.
Sources
- NASBA CPAverify
- IRS: Instructions for Form 6765, Credit for Increasing Research Activities
- 26 U.S.C. 174A: Domestic research or experimental expenditures
- 26 U.S.C. 174: Amortization of foreign research expenditures
- 26 U.S.C. 1202: Qualified small business stock
- IRS Form 15620: Section 83(b) Election
General information as of October 20, 2026. Tax rules change; talk to a CPA about your situation.