Bench Alternatives! 15 Best Accounting Firms for Startups and How to Choose the Right One

With Bench’s recent announcement of its closure and subsequent acquisition by Employer.com, many startups and small businesses may be seeking a reliable accounting firm as a Bench alternative.

We have listed the 15 best accounting firms for startups and also how to choose the right one. 

• Steps to follow before deciding on your next accounting firm.

• Key Factors when choosing your accounting firm.

• 15 best accounting firms for startups.

 Steps to follow before deciding on your accounting firm

1. Assess your requirements (U.S. vs Non-U.S experts, industry specialization, physical contact or remote work, transactional or personal service, services required, your budget, etc.)
2. Identify and short-list accounting firms specialized in your industry that meet your requirements.
3. Make calls (at least with 2-3 firms) with the short-listed accounting firms, ask all your questions and request formal proposals so that you can see the unspoken details. 
4. Review the proposals in detail, list your questions.
5. If not satisfied, make additional calls with them.
6. Before you decide, ask for referrals and talk to their existing clients from your industry.
7. Continue searching for the right accounting firm before making a decision.  

Key factors when choosing your accounting firm

Of course price is a very key factor but must not be the only one. So, what should you consider when choosing your Bench alternative?

1) Specialization:

- Non-U.S. vs U.S. Founders:

Whether serving purely to the U.S. market or selling globally, non-U.S. founders have very unique challenges and also different set of requirements such as: 

• Paying themselves or their non-U.S. teams (see our article on the subject),
• International operations, U.S. and non-U.S. entities. How to reflect services they provide or receive from their non-U.S. related companies while complying with the transfer pricing principles and double tax treaties,
• Specific reporting and compliance requirements with the U.S. tax returns (see our article on the subject).
• Opening or verifying U.S. bank accounts, PSP's (see our article on the subject),

If you are a U.S. based, U.S. founder with purely U.S. teams, your options are much wider, many of the alternatives may tick this box as this is the minimum standard to know.

 

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Tukel Accounting is the only expert firm specialized solely in non-U.S. founders.

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- Industry Specialization:

Each industry, business model has its own challenges and requirements. Ensure to choose an accoutning firm specialized in your line of business. Some typical industries are:

• Tech Industry such as SAAS/PAAS businesses and App, software developers
• Agencies, e-commerce businesses, service providers
• Manufacturing businesses, retail stores, workshops
• Real estate and trucking

We recommend that you choose an accounting firm specialized in your industry and can also provide industry benchmark, examples of solutions to your operational challenges, not just accounting.

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Tukel Accounting is specialized in Tech Industry (SAAS/PAAS, App/Software Developers) and Service Businesses. SCHEDULE YOUR COMPLIMENTARY ZOOM CALL.

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2) Transactional vs. 1on1 Custom Service

Bench is a transactional service provider. Where as many founders do not know the difference or what to expect from mass transactional services providers. Common attributes of a transactional accounting service provider are,

• They are usually the lowest cost option.
• They process your data input in an automated software using 100's of bookkeepers for 1000's of startups.
• The person looking after your account may change frequently, you may lose the history, relation.
• They are generalists and do not try to understand your business model, specific issues.
• They are not pro-active to identify your opportunities, risks or compliance issues.
• They don't provide you with the advice on tax planning, cashflow opportunities, financial anomalies, benchmarks.
• They can not provide all the services that you need such advisory, investor relations, captables, etc.  

1on1 accounting service providers are, as the name explains, provide custom and personalized services to startups. Just assume the opposite of transactional service providers.

Please keep in mind that not all the transactional or 1on1 accounting service providers are the same, please decide whom to work with after having calls with your shortlisted service providers

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Tukel Accounting is a 1on1 and boutique accounting firm providing personalized services. SCHEDULE YOUR COMPLIMENTARY ZOOM CALL.

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3) Response Time and Team Stability

There will be times when you will need to talk to your accountant urgently. An investor has a question, you received a notice with a tight deadline, problem with a customer or vendors, tax planning concerns, etc.

Accountants have a reputation to reply back in weeks and that is sometimes after many reminders to them. And when they reply, it may be a generic answer. This may become very frustrating.

In addition, the accountant taking care of you may change frequently. This usually is not a good sign because you would be managed or answered by someone who doesn't necessarily know your business, agenda items, the history, etc.

Asking for referrals is a good way to validate the commitments you receive from an accounting firm.

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Tukel Accounting replies back within 1 day, without an exception, and all clients work with the same team for years. SCHEDULE YOUR COMPLIMENTARY ZOOM CALL.

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4) Physical vs. Remote Service Provider

For Bench ex-customers, this is not a criteria because you are already used to a remote / virtual service provider without requiring a physical touch at a physical office and Bench is equipped to manage this.

But if you are seeing the need to meet your accountant in person (and we don't mean over the Zoom but in real person) at an office, then we suggest you still read through the factors to consider but search for an accounting firm in your local area by searching the Google "startup accountants in my area". 

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Tukel Accounting works remotely with non-U.S. founded clients from all over the world, in a wide timezone, with remote work technology. 

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5) One-Stop-Shop vs. Multiple Service Providers

It is very common that accounting firms specialize or provide only a portion of the services required by startups. Many firms cover bookkeeping and taxes but when it comes to legal matters, advisory, HR/payroll they tend to refer you to other firms.

You may be needing a limited service coverage today but as you grow (e.g. when you hire employees, get investment and need equity accounting or captable management) your accounting firm should be able to accommodate your emerging needs.

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Tukel Accounting is a One-Stop-Shop for U.S. Tech. & Service Startups, covering all their requirements from seed to exit. SCHEDULE YOUR COMPLIMENTARY ZOOM CALL.

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6) Service Portfolio and Pricing

Pricing is not a stand alone topic as it is very much related to the scope of services that you will need and how they are bundled. Of course it is also related to your scale and complexity.

Many firms tend to create bundles, packages for startups which, some times, may be mis-leading. 

• Assess your requirements and only pay for what you need, nothing more, nothing less.
• Choose your accountant based on your growth plans, not what you need today but also what you may need in the future.

The services that a typical startup needs:

• Bookkeeping, accounting
• Tax returns (for the business and may be also for the founders and the team)
• Tax advice and tax planning
• Compliance checks, reminders
• Legal advice, agreements, stock issuance, employee stock option plans (via partner legal firms)
• Payroll, HR
• Fractional CFO services
• Management and Tech Advisory, Coaching and Mentoring to Founders 
• Notice, IRS letter reviews and advice
• Captable management
• State relations
• Other common filings as they come such as BOI an BEA surveys

There are other services that accounting or CPA firms provide such as audits, reviews, compilations, valuations, etc. but many startups do not need these services.

You may want to choose an accounting firm that not only provides reasonably priced services today but can also expand the scope on a variety of different services as you grow.

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Tukel Accounting provides all the services with a flexible pricing model. You only pay for what you need and can add/remove services whenever you want.

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7) Connection and Vibe

Yes, the title may sound judgmental but the connection that a founder has with the accounting firm owner and the team is very important. Do you speak the same language, does the firm owner / partner understand you, know your business, respectful?

You will be the final judge of this soft criteria. There is no right of wrong here, it is just you as the founder deciding whom to work with.

Bench Alternatives

We haven't provided a comparison among the listed firms because the details of criteria for each of the firms is not available and we are biased as Tukel Accounting, the writer of this post.

We recommend that you do your own check, ask for referrals even before arranging calls with any of the options.

List of accounting firms alternative to Bench

1) Tukel Accounting - Schedule your complimentary discovery Zoom call

Best for startups with non-U.S. founders in technology or service businesses, looking for 1on1 boutique service to address their current and future requirements, with annual revenue greater than $250K. Bookkeeping fees start from $389/month and tax returns from $979.

Specialization:

• Non-U.S. Founders, Non-U.S. Teams, Non-U.S. Operations
• Technology Businesses: SAAS/PASS, App/Software Developers, Marketplaces
• Online Service Business: Agencies, developers, online education

Flexible Services Provided (One-Stop-Shop, choose only what you need):

• Bookkeeping, accounting
• Tax returns, including tax planning, quarterly estimates
• For founders: Personal U.S.tax returns and personal U.S. tax planning
• CFO services, advisory, board, investor relations, captable management
• HR and payroll
• State relations
• Management and Tech advisory, coaching and mentoring for founders 

Other differentiating factors:

• 1 day reply commitment
• Dedicated and stable team, continuity
• One-Stop-Shop for startups from seed to exit, covering all their requirements
• Flexible service pricing, pay only for what you need, add/remove services whenever you want
• Partnerships with Brex, Mercury, Carta, Deel and many more

Other features:

• Remote and High-Tech Firm using the latest cloud based collaboration platforms
• Client Portal (SOC2)
• 1on1 service, boutique firm

 As a Xero partner, we leverage advanced technology to enhance the accounting experience for our clients. Thanks to its enhanced reporting and automation features, along with seamless integration with bank accounts and third-party applications, the accounting process is significantly improved for both us and our clients. This allows small business owners to spend more time to their business operations and less time worrying about their finances.

How Does Tukel Accounting Compare to Bench?

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