Is Hiring a CPA sufficient for My Startup?
Short answer: No, not as your startup grows.
A CPA plays a vital role in tax compliance and financial reporting. However, most startups, especially venture-backed or fast-growing companies, need ongoing financial leadership that goes beyond what a traditional CPA typically provides.
Below, we explain what a CPA does, what they do not do, and when a startup needs CFO-level support.
What Does a CPA Do for a Startup?
A Certified Public Accountant (CPA) typically helps with:
Annual tax preparation and filings
Financial statements for tax and compliance purposes
Year-end reconciliation and cleanup
Audit and investor tax support
CPAs are essential, but their work is usually periodic and historical. They're focused on compliance rather than day-to-day operations or forward-looking strategy.
For very early-stage startups with limited activity, this may be sufficient temporarily.
Why a CPA Alone Is Not Enough for Most Startups
Once your startup launches, you must understand where money is going in real time.
Founders need clear answers to questions such as:
What is our current burn rate?
How long is our runway?
When do we need to raise additional capital?
How do hiring decisions affect cash flow?
Will our financials stand up to investor diligence?
These are not questions most CPA firms are designed to answer on an ongoing basis.
CPA vs. CFO: What's the Difference for Startups?
What a Startup CFO Provides
A Startup CFO focuses on operational and strategic finance, including:
Cash flow modeling and forecasting
Budgeting and scenario planning
Monthly board and investor reporting
Real-time financial insights for founders
Fundraising support and diligence preparation
Guidance on hiring, compensation, and spending
This level of involvement becomes critical as a startup scales.
When Does a Startup Need a CFO?
Most startups benefit from CFO-level expertise when:
Preparing to raise seed or Series A funding
Burn rate and runway become decision drivers
Investors expect professional monthly reporting
Payroll, benefits, and headcount are growing
Founders must shift from survival mode to execution
At this stage, relying only on a CPA can introduce risk, delays, and blind spots.
How Countsy Fits In
If your CPA no longer meets your ongoing financial, accounting, or HR needs, Countsy can help.
With Countsy, startups receive:
On-demand financial insights for better decisions
You do not need to replace your CPA. Countsy works closely with your CPA while handling daily operations and financial leadership.
From Annual Tax Review to Daily Financial Operations
Raising capital changes expectations.
Once funded, startups must move from annual tax-focused thinking to daily operational finance discipline.
Countsy provides the insight and support needed to manage financial, accounting, and HR responsibilities so that founders can focus on execution, growth, and long-term success.
Frequently Asked Questions
Is a CPA enough for a venture-backed startup?
No. Venture-backed startups typically need CFO-level support for forecasting, investor reporting, and cash management.
Do startups need both a CPA and a CFO?
In most cases, yes. CPAs focus on taxes and compliance, while CFOs manage strategy and ongoing financial operations.
When should a startup hire a Fractional CFO?
Often, at the seed stage, before a fundraising round, or when burn rate and runway become critical to decision-making.