Startup tax accountant

Sail through your next tax season
Stay compliant and maximize your startup tax benefits with Zeni’s startup tax services.
$3.65M
Number of R&D Tax Credits captured for Zeni customers (and counting).
0
Number of audits from the IRS.

100%


Percentage of our clients’ taxes filed on time.

Let the pros maximize your time and dollars

Taxes are confusing

Business taxes are complex. Regulations change constantly. One misstep can land your business in hot water with the IRS.

You’re missing opportunities

Many startups qualify for credits, refunds, and exemptions that they don't know exist. Money gets left on the table.

Taxes are time-consuming

You have to file taxes. Period. But you have better things to do than labor over them yourself.

Annual tax filings

One team for all tax needs

Our team of startup tax experts handles every aspect of business tax returns with speed and accuracy, including:

access tax experts

Decades of startup tax experience

Work with a team that specializes in taxes for venture-backed startups. Maximize your benefits while remaining compliant with all tax regulations.

r&d tax credits

Extend your runway

How would $250,000 in tax credits help your startup? We manage startups' federal R&D Tax Credit filings from start to finish:

one team

Consolidate your FinOps under one roof

Our tax specialists work closely with their finance team counterparts (who manage your day-to-day finance operations) to seamlessly prepare and file your tax returns.

Annual Startup taxes

Key product benefits

Cost savings

Our tax services are designed to offer startups a reliable, cost-effective tax solution that saves time and resources.

Comprehensive

We cover all aspects of typical startup tax needs, so you have a full-service solution under one roof.

Expertise

Trust your dedicated team of experienced tax professionals to ensure your taxes are filed accurately and with compliance.

R&D Tax Credits Most Startups Should Consider

Section 41 of the Internal Revenue Code lets qualified businesses claim multiple federal tax credits for expenses related to the research and development (R&D) of a “business component.” That can include products, processes, techniques, software, and more.

The calculations behind the credit amounts are complex, but the two primary potential benefits for startups include:

  • Dollar-for-dollar income tax reduction: Qualified businesses can typically claim between 6% and 10% of eligible R&D costs each year as a nonrefundable tax credit that reduces their federal income taxes dollar for dollar.
  • $1.25 million payroll tax reduction: Startups with no more than five years of gross receipts and less than $5M in gross receipts for the credit year may be able to claim up to $250K in annual FICA payroll tax credits for up to five years.

Since the passage of the Protecting Americans from Tax Hikes (PATH) Act of 2015, these R&D tax credits have become much more accessible for the average startup founder or small business owner.

If you incur any labor or material costs related to R&D, you should strongly consider consulting an expert startup tax accountant to determine if you can claim these lucrative tax credits.

Other Strategic Financial Considerations for Startups

Startups face a variety of other strategic financial challenges that startup accounting services can make much easier to navigate. For example, some of the most important issues for you to consider include the following:

  • New business formation: Your choice of legal entity–such as a C Corporation, S Corporation, or limited liability company– can significantly impact not only your annual taxes but also your ability to raise funds from an investor or achieve a favorable M&A exit.
  • GAAP compliance: Adopting Generally Accepted Accounting Principles (GAAP) and accrual accounting can be an intimidating undertaking, and lenders and investors often require GAAP financial statements before they’ll consider working with you.
  • Sales tax compliance: Many startups have sales tax responsibilities in multiple states. Determining where you have nexus, collecting the proper tax amounts, and filing returns across all of them can be incredibly challenging.
  • Long-term financial planning: As your startup grows in size and complexity, it becomes increasingly difficult to make informed business decisions without analysis techniques like cash flow forecasting or financial modeling.

Waiting too long to tackle these types of financial challenges only ever makes them harder to manage. As a result, it’s often wise to engage a startup accounting service sooner rather than later to prevent them from escalating, rather than waiting and trying to fix mistakes later.

What To Look for In a Startup Accountant

If you’re a startup founder searching for an outsourced accounting service, competitive rates should be considered table stakes. Beyond pricing, here are some of the most important things to look for before choosing an accounting firm to manage your financial records:

  • Relevant experience: The specific challenges involved in accounting for startups can vary significantly between industries. Make sure you choose an accountant who has a proven track record of successfully guiding businesses through the complications you need help navigating.
  • Technological compatibility: You may be surprised that conflicting tech preferences can be a significant hurdle to clear when collaborating with financial service providers. Look for an accountant who is willing and able to use the software you use or plan to implement.
  • Strong reputation: Look for accountants who have received positive feedback from their previous customers. Referrals from your network are a great place to start. Crowdsourced online reviews can also help, but keep in mind that people are more likely to leave them when upset, which can skew results.

In addition, pay attention to less tangible characteristics, such as communication style and cultural fit. Many Certified Public Accountant services offer free consultations, which can be an excellent opportunity to gauge how well you’re likely to collaborate with them.

let's break it down

Learn about startup taxes

Your AI powered bookkeeping and accounting platform

Close your books daily, access real-time insights, and get personalized support from experts — all on a single platform.