Hire an accountant: what small business owners should consider as finances grow

If you are a founder or small business owner, chances are you have worn the hat of bookkeeper, tax filer, and financial analyst at some point. In the early days, Excel and basic skills may be enough. But as transactions increase, payroll expands, and investors start asking for financial statements, keeping up with your numbers gets harder, and the cost of mistakes rises.

This is where hiring an accountant makes sense. A certified public accountant (CPA) can take on the work, such as tax planning, business accounting, and financial analysis. They prepare accurate financial statements, help with cash flow forecasting, and enforce compliance with tax laws.

With Rho, you can set your professional accountant up for success. By unifying your banking, credit card, and bill pay in one platform, we give them real-time financial data they can trust. That means less time chasing receipts or cleaning up records, and more time advising your business on what matters most.

Do you actually need an accountant? A quick self-check

Not every startup needs a full-time accountant right away. But as your business finances grow more complex, the warning signs become clear: 

• You are filing multi-state tax returns or complex IRS tax forms, such as 1099s, 1096s, or partnership filings like Form 1065.

• You face recurring cash flow issues or have financial statements that do not fully explain where your money is going.

• You need investor-ready financial reporting, whether for a board pack, lender requirements, or fundraising.

• Your business is experiencing rapid growth, or you need to manage compliance for grants, non-profits, or evolving payroll structures.

Bookkeeping services can handle categorization and reconciliations, but accountants and CPAs step in when you need strategy, tax planning, and professional financial reporting.

Mapping your business needs to the right level of accounting services is critical. 

With Rho, your accountant gets the data foundation they need from day one. By giving them real-time visibility into banking, cards, and bill pay, plus direct integrations into QuickBooks, NetSuite, and Xero, you save them hours of manual work and give them the clarity to advise you on financial planning and cash flow.

What accountants do compared to bookkeeping services

It is common to confuse them, but the two play different roles in managing business finances. Both are important for keeping your business on solid ground.

Bookkeeping services (day-to-day)

• Handle categorization of transactions, bank reconciliations, accounts payable and receivable, and overall financial information hygiene.

• Provide clean records that feed into financial statements and tax preparation.

• Typically operate at the transactional level, making sure nothing falls through the cracks.

Accountants and CPAs (strategy and compliance)

• Focus on strategy, compliance, and financial reporting rather than daily transaction entry.

• Provide tax planning, guidance on entity structure and tax code choices, and advice on deductions.

• Prepare financial statements in line with GAAP and double-check audit readiness.

• May serve as fractional controllers or CFOs to guide financial planning and forecasting.

• Tax accountants specialize in preparing and filing tax returns, while certified public accountants support broader business accounting and financial planning.

The two functions work best together. 

Choosing the right accounting services

Once you know you need accounting support, the next question is which model fits your business. The right accountant for a startup looks different from that for a growing company with multiple entities. Here are the three most common approaches:

Accounting firm

An accounting firm is often the right choice for seasonal or specialized needs, such as preparing for tax season or handling complex reviews. Firms give you access to a team with broad expertise across tax planning, compliance, and financial reporting. The tradeoff is cost and consistency. Firms typically bill with a retainer plus hourly rates, and you may not always work with the same professional from project to project.

Fractional CPA

A fractional CPA can be a smart fit for growing startups that need strategic financial planning but are not ready for a full-time hire. This model provides flexibility for quarterly reviews, tax preparation, or support during a fundraising process. The limitation is bandwidth. A part-time CPA may not always be available when demands peak. Pricing is usually structured on an hourly or project basis.

Full-time accountant

Hiring a full-time accountant makes sense once your operations are complex enough to require ongoing attention. Businesses with high transaction volumes, monthly closes, or multiple global entities benefit from having someone in-house. A full-time accountant provides dedicated capacity for financial reporting, tax planning, and compliance. The tradeoff is cost, as this model involves salary plus benefits and is typically the most expensive option.

Quick comparison

Choosing the right accountant depends on your business needs, budget, and growth stage. Many startups start with fractional support before moving to a full-time hire once complexity and reporting requirements increase.

How to hire the right accountant: a practical workflow

When you evaluate accountants, focus on how their skills fit your business stage, reporting requirements, and industry, not just their license. Having a process up front will make it easier to identify the right fit.

1. Define what you need

• Decide on close cadence: monthly, quarterly, or annual.

• Clarify required deliverables such as financial reporting packages, tax prep, forecasting, board packs.

• Set expectations for communication and response times.

• Identify accounting software and workflow tools you want in use.

• If you already use Rho, have your accountant can connect QuickBooks, NetSuite, or Xero to real-time banking, cards, and bill pay.

2. Source potential candidates

• Ask for referrals from founders, VCs, or advisors.

• Look for vertical specialists who understand your industry (SaaS, CPG, non-profit, etc.).

• Prioritize experience at your stage of growth, not just years in practice.

3. Evaluate through interviews

Ask scenario-based questions:

1. “Walk me through your month-end close checklist for a seed-stage SaaS.”

2. “How would you improve cash flow visibility with our current accounting system?”

3. “Show me a board pack you’ve built and explain which KPIs you track.”

4. “Describe a GAAP vs. tax treatment tradeoff you’ve managed.”

5. “Which accounting software and workflow tools do you prefer and why?”

6. “How do you collaborate with AP and expense platforms to reduce manual work?”

4. Watch for red flags

• Cannot explain financial controls or segregation of duties.

• Avoids documentation or is vague about deliverables.

• Opposes direct system access, even in read-only form.

• Has no plan for automating repetitive accounting tasks.

Onboarding your accountant the right way

Bringing in an accountant is only half the work. To get the most value, you need to set them up with clear processes, access, and standards from the start. A structured onboarding makes sure they can focus on analysis instead of chasing documents.

• Grant read-only access and role-based permissions for your banking, credit card, and bill pay accounts. With Rho, this can be done directly so your accountant can see real-time transactions without disrupting daily operations.

• Connect your general ledger, whether QuickBooks, NetSuite, or Xero, and lock in chart-of-accounts conventions to prevent errors.

• Establish document standards for receipts, memos, and supporting files, and create a close calendar with deadlines for reviews and approvals.

• Set up variance analysis and review checkpoints so your accountant can spot discrepancies early.

• Build a financial reporting pack that includes a P&L, cash flow statement, and key operating metrics such as customer cohorts or recurring revenue.

With these steps in place, your accountant moves quickly from setup to providing meaningful insights. And when your financial records flow through Rho, they spend less time reconciling spreadsheets and more time advising on cash flow and tax planning.

Accountant pricing: what you should expect

Hiring an accountant is an investment, and pricing can vary widely depending on scope, complexity, and frequency of services. Understanding the main drivers of cost helps you budget realistically.

The price you’ll pay for an accountant comes down to scope, frequency, and complexity. A business that only needs annual tax filings will spend far less than one that requires monthly closes, cash flow forecasting, and detailed reporting. Costs also rise as operations grow more complex: companies with multiple subsidiaries, business units, or multi-state tax filings face steeper fees than those with straightforward books.

Typical ranges

Hiring an accountant is an investment, and the price varies widely depending on the type of support you choose. A simple bookkeeping package costs far less than retaining a CPA firm or bringing on a full-time hire. For startups, it helps to think about costs in terms of both service model and business complexity.

Here’s what typical ranges look like in the U.S.:

The right model depends on your stage. Early-stage startups often start with bookkeeping or fractional CPA support. As complexity grows, a full-time accountant becomes worth the higher fixed cost.

Set your accountant up for success with Rho

Hiring the right accountant is only part of the solution. To make the relationship effective, they need accurate, real-time data and efficient workflows. That is where Rho comes in.

• Automated enrichment, vendor rules, and GL mapping keep financials accurate without manual fixes.

• Role-based approvals and audit trails create strong financial controls while keeping teams moving.

• Direct integrations with QuickBooks, NetSuite, and Xero mean your financial records stay in sync.

With Rho, accountants spend less time reconciling spreadsheets and more time on financial planning, tax preparation, and strategic advice that supports your business growth.

Hiring an accountant pays for itself when paired with the right tools. Give your CPA the platform that helps them focus on your company’s future, not its paperwork.

Get started with Rho.

FAQs

Do I need a CPA or will bookkeeping be enough?

Bookkeeping services manage day-to-day financial records like categorization and reconciliations. A CPA goes further, offering financial planning, business accounting, and tax preparation. If your business taxes or reporting are becoming complex, going that route is the right move.

When should a small business hire a full-time accountant?

A full-time accountant is best when your company faces complex business taxes, has high transaction volume, or needs monthly financial statements for multiple entities. Smaller startups often begin with bookkeeping or fractional accounting services before scaling to a full-time hire.

Which accounting software should startups use and why?

QuickBooks, NetSuite, and Xero are the most common choices for startups. They provide reliable accounting systems, and each integrates directly with Rho so your financial records are accurate and up to date.

How do I give my accountant secure access to my financial records?

Use platforms that offer role-based permissions and read-only access. With Rho, accountants can securely review transactions across banking, credit card, and bill pay without disrupting your day-to-day operations.

Can Rho replace my accountant?

No. Rho is not a substitute for a professional accountant. Instead, we provide clean financial data and automated workflows so your CPA can focus on advising your business instead of reconciling spreadsheets.