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If you’re looking for a startup accountant in the Los Angeles area, I’d be happy to help. I’m a CPA and the founder of Kruze Consulting, where we provide Accounting, Tax, Finance, and HR for over 800+ startups. In the past I’ve worked at Deloitte Tax and I was the Controller of a 120+ employee startup. Our COO Scott Orn is a Kellogg MBA, former VC Partner at Lighthouse Capital Partners, and before that was an investment banker at JPMorgan. Our finance team has leaders from VC firms like Summit and Atlas, and finance firms like Morgan Stanley. Together we’ve created an all-in-one back office solution for VC backed startups. Most importantly, we love what we do and look to form lasting partnerships with our clients.
Why LA startups need good accounting
LA startups raising VC funding need good accounting for startups matters for several reasons:
- Fundraising: If you are looking to raise money from VC, they will want to see accurate, well-organized financial statements. This helps them assess the financial health of your startup, the efficiency of its operations, and the potential return on their investment. We’ve found that post the 2021 crash, VCs are paying more attention to how historical financial statements tie to the pitch.
- Financial Control: Good accounting gives you a clear understanding of your financial situation. It tells you how much money you are making, where it’s coming from, and where it’s going. This information is crucial for making informed decisions about budgeting, strategy, and growth.
- Compliance: Startups are subject to various laws and regulations, including those related to taxes and financial reporting. Accurate and timely accounting helps ensure that you comply with these requirements, thereby avoiding penalties and legal problems.
- Decision Making: Accounting data is crucial for making business decisions. It helps in budget planning, forecasting future trends, and identifying areas for cost reduction or investment.
- Trust and Credibility: Accurate accounting builds trust with stakeholders, including investors, employees, and partners. It shows that you are running your business professionally and transparently.
To ensure that your accounting is done right, you can either do it yourself (if you have the necessary knowledge and time) or outsource it to a professional accounting firm. If your startup is in the early stages or has limited funding, you might be able to handle the accounting yourself - we often recommend very early-stage LA startups DIY their books. However, as your business grows, it will likely become more complex and time-consuming. At this point, hiring an accounting firm could be a wise investment. They can provide expert advice and handle the more complex aspects of your financial management, allowing you to focus on your business’s growth and strategy.
Do LA startup need an outside accountant?
At least 10% of the companies we talk do don’t really need an outside bookkeeper. Tax help is a good idea for pretty much all startups - and tech startups can take advantage of R&D tax credits and other tax incentives (even unprofitable startups may be able to do this).
Why Kruze is one of the leading startup CPAs with and office in LA
Kruze has worked with over 1,000 California based startups, and our team has worked with scores of successful Los Angeles based clients. From capital raising to taxes to getting acquired, we’ve seen the full lifecycle. Here are some of the major advantages of working with Kruze:
Organizational Management. Our team of accountants knows what successful startups’ books look like, and will provocatively take steps to help you improve your finances and keep your numbers accurate and up-to-date.
Venture Capital Due Diligence Support. Whether your startup is drawing the attention of venture capitalists or M&A acquirers, we’re here to support you. Companies we’ve worked with have raised capital from most, if not all, of the top VCs in Los Angeles and SoCal (asl well as pretty much all of the Silicon Valley funds).
Tax Planning and Compliance. We go beyond basic tax return preparations. Our services include identifying applicable tax credits, such as the Research & Development tax credit, complying with increasing IRS documentation requirements, and meeting sales tax burdens.
Accounting and Fintech Systems Implementation. We recognize the challenges of scaling a startup and ensure your financial and HR systems aren’t one of them. Our CPA team, having supported numerous high-growth companies, understands which software and systems are primed for exponential growth.
Strategic Financial Advisory. Our CFOs, accountants and CPAs deliver crucial financial insights on budgeting, modeling, cash outflow, and much more, tailored to your startup’s specific needs. We also assist in financial forecasting, KPI analysis, and devising effective financing strategies. We work closely with you, analyzing your business’s ‘big picture’ to optimize your financials and make the most of your cash positions.
Services we offer to LA-based startups
Our services include: fractional CFO services, bookkeeping, payroll, benefits, taxes, debt & equity fundraising assistance, 409A reporting, board financials, AR, AP, and HR. We also build financial models for startups that have been used to pitch premier VC firms.
Feel free to reach out to me: vanessa@kruzeconsulting.com.
