Your cap table management software is a critical accounting and tax resource. CPAs rely on accurate ownership data to reconcile funding, prepare tax returns, and support state-level tax calculations like franchise taxes. When accountants can see your current equity data, they can work faster and catch issues earlier.​

For venture-backed startups, the cap table is effectively a second ledger that must correspond to your accounting records. When your cap table matches your accounting records, financial statements and tax filings are more accurate, diligence is easier, and founders spend less time answering urgent last-minute questions.

Reason 1: Reconciliation After Fundraises

One of the biggest reasons CPA firms want cap table access is to reconcile your equity raises. After each funding round, your accountants need to confirm that:

  • Every line on the cap table (shares, SAFEs converting, notes, etc.) matches signed documents and closing schedules.
  • Every investor’s wire actually arrived for the correct amount and is recorded in your bank and books.

Without this reconciliation, it is possible to discover months later that a wire bounced, an investor sent the wrong amount, or some capital was never received even though the cap table says it was. That discrepancy can affect:

Direct access to cap table software lets the CPA go line by line, checking share counts and investment amounts against the bank statements, rather than relying on static screenshots or spreadsheets.​

Reason 2: Ownership Information for Tax Returns

Tax agencies want to know who owns your startup. On corporate tax returns and related schedules, your CPA often must list:

  • The largest shareholders (typically founders and major investors).
  • Their ownership percentages.
  • Sometimes additional information like entity type or residency.

Pulling this information from an up-to-date cap table is much faster and more accurate than trying to reconstruct it from old SAFEs, stock purchase agreements, and email threads. When accountants have direct access, they can:

  • Confirm that the “top owners” list reflects current reality, not last year’s round.
  • Quickly adjust for any new investors, secondary sales, or founder departures.

This reduces the risk of filing returns with outdated ownership data, which can create confusion or follow-up questions from tax authorities.​

Reason 2a: Data for Other Tax Calculations

Many state tax agencies require more specific ownership and share information for separate filings beyond your federal income tax return. For example, the Delaware franchise tax calculation depends on:

  • Authorized shares.
  • Issued shares.
  • Sometimes different categories of stock and par value.

Other states may request:

  • Total share count and class breakdowns.
  • Percentages owned by in‑state or out‑of‑state shareholders.

Your cap table is the single source of truth for these numbers. When your CPA can pull them directly, it:

  • Lowers the risk of misreporting and overpaying (or underpaying) things like franchise taxes.​
  • Saves time compared to back-and-forth emails asking for “one more cap table export.”

Reason 3: Practical Data Lookups and Investor Details

Frequently, founders don’t realize all the information that accountants require to complete various tax filings and financial statements. Your accountants may need to look up:

  • Investor mailing addresses and jurisdictions.
  • Whether an investor is an individual, a fund, or a foreign entity.
  • Specific transaction dates tied to equity events.

When they can find that information themselves in the cap table system, it prevents a constant stream of small information requests to the founding team during busy season. That means:

  • Faster tax prep and financial statement work.
  • Fewer founder distractions at year-end and just before fundraising.

Why Sharing Cap Table Access Helps You

Giving your CPA firm access to your cap table management software:

  • Improves the accuracy of your financial statements and tax filings.
  • Makes reconciliation after funding rounds much easier.
  • Reduces the risk of missing wires or misreported ownership.
  • Simplifies tricky state filings like Delaware franchise tax.
  • Cuts down on back-and-forth emails and urgent data pulls.

For venture-backed startups, CPAs use cap table access to keep your books, taxes, and ownership in sync – so you can focus on building, not chasing down equity details.