Accounting firms for startups near Palo Alto

Every startup needs an accountant sooner than founders expect. A Delaware C corporation based in Palo Alto files a federal return and a California return in its first year, even with no revenue. Payroll brings quarterly filings. A first priced round brings a 409A valuation, cap table questions and, before long, investors asking for financial statements they can trust. Silicon Valley has a deep bench of firms that work with venture-backed companies, though fewer keep offices inside Palo Alto itself than you might guess.

This guide lists firms with offices in Palo Alto and nearby Peninsula and South Bay cities, based on what each firm publishes. It also explains what startups usually hire accountants for. For legal help, see our companion guide to startup law firms.

What startups hire accountants for

• Bookkeeping. Recording transactions, reconciling bank and card accounts and closing the books each month.
• Tax returns. Federal Form 1120, the California corporate return, state filings in other states where you have employees and Delaware franchise tax reports.
• Research credit studies. Figuring and documenting the federal and California research credits, including the payroll tax election. Our R&D tax credit guide explains how it works.
• Fractional CFO work. Budgets, financial models, board reporting and fundraising support.
• Audits and reviews. Independent audits that investors, lenders or acquirers ask for.
• Equity and transactions. Stock compensation accounting, sales tax and tax planning around acquisitions. Our equity guide covers option basics.

Small startups often hire a bookkeeping or outsourced accounting firm first and a CPA firm for tax returns. As the company grows it may bring in an in-house controller and a separate audit firm.

In Palo Alto

Frank, Rimerman + Co.

Frank, Rimerman lists its Palo Alto office at 1801 Page Mill Road, near Stanford Research Park. Its office page describes advisory, assurance, accounting and tax services, including fractional CFO support. It says it works with clients from fast-growing startups to established organizations. Its site lists other offices across California. The firm notes that it is a member of the Baker Tilly International network, whose members are separate and independent firms. It is not the same firm as Baker Tilly US, listed below.

Elsewhere on the Peninsula

BPM, Menlo Park

BPM lists a Menlo Park office at 149 Commonwealth Drive, Suite 1090. Its Menlo Park page says the office is a fit for Peninsula founders, venture-backed companies, venture capital firms and life sciences companies, among others. It describes help with research credits, entity structure, equity compensation, outsourced accounting and audit preparation. BPM also lists a San Jose office at 10 Almaden Boulevard, Suite 1000. Its site describes a separate outsourced accounting service for startups.

Baker Tilly, Redwood City

Baker Tilly lists a Redwood City office at Three Lagoon Drive, Suite 400. Its Silicon Valley office is at 300 Santana Row, Suite 300, San Jose. Two well-known local names now sit under Baker Tilly. The firm says Seiler, which it describes as serving clients for 65 years, joined it effective July 1, 2024. The old Moss Adams website now sends visitors to Baker Tilly's office list, following the two firms' combination.

Sensiba, San Mateo

Sensiba lists its headquarters at 101 Metro Drive, Suite 160, San Jose. Its Peninsula office is at 1840 Gateway Drive, Suite 409, San Mateo. Its site describes a Startup Navigator service: a monthly accounting plan that adds tax, audit and finance specialists as a company grows.

National firms with Silicon Valley offices in San Jose

Several national firms list a "Silicon Valley" office in downtown San Jose, about 20 minutes south of Palo Alto by car in light traffic or a Caltrain ride to Diridon station.

Large firms often focus on later-stage and public companies. Ask whether a given office takes on seed and Series A clients and who would staff your account.

Startup-focused firms based elsewhere

Much startup accounting now happens remotely through cloud software. A number of firms that market only to startups are based in San Francisco. Kruze Consulting, for example, lists San Francisco as its location and describes startup accounting as its focus. Founders also use bookkeeping services bundled with banking or payroll software. When a firm has no local office, ask how it handles in-person needs such as audit fieldwork.

How to choose a firm

1. Match the stage. A pre-seed company needs clean books and on-time returns. A Series B company needs revenue recognition, stock compensation accounting and audit readiness.
2. Ask about the team. Who does the work each month? How often will a partner or manager review it?
3. Ask about software. Most startup firms work in cloud accounting and expense tools. Make sure the company, not the firm, owns the accounts.
4. Get pricing in writing. Many firms charge a monthly fee for bookkeeping and separate fees for tax returns, research credit studies and audits.
5. Think ahead to the audit. Independence rules can keep the firm that does your bookkeeping from auditing you. Plan for a second firm later.
6. Ask for references from companies at your stage and in your industry.

Questions to ask in a first meeting

A short call usually tells you whether a firm fits. Useful questions include:

• How many clients at our stage and in our industry do you work with today?
• Which accounting software and expense tools do you support? Who sets them up?
• Do you prepare research credit studies in house or refer them out?
• How do you handle multistate payroll and income tax filings for remote employees?
• What is your typical response time during tax season and around board meetings?
• What happens to our files and logins if we move to another firm?

Write down the answers and compare them side by side. Fees matter, but responsiveness and accuracy matter more when an investor is waiting on numbers.

Checking a CPA's license

The California Board of Accountancy licenses CPAs and accounting firms in the state. Its license search shows status and any disciplinary action. The IRS notes that tax return preparers include CPAs, enrolled agents, attorneys and many people with no professional credential at all. It explains the different credentials, including CPAs, enrolled agents and attorneys, on its page about choosing a tax professional.

A first-year accounting calendar

• Month one: open a business bank account, set up cloud bookkeeping and keep founder spending separate. Our banking guide covers the account.
• First payroll: register with the EDD and start quarterly filings. See our payroll guide.
• Before the first option grant: get a 409A valuation, usually from a valuation firm.
• Year end: close the books, issue 1099 forms to contractors and gather research credit records.
• Spring: file or extend federal and California returns and file the Delaware annual report. Our incorporation guide has the Delaware dates.

Frequently asked questions