Choosing the right accounting firm is one of the first decisions a startup makes and yet, in practice, it is usually approached with less rigour than the choice of management software or co-working space. Getting this decision wrong has practical consequences from day one: returns filed late, an unsuitable corporate structure, incorrect employment contracts or bookkeeping that does not support informed decision-making.
What a startup needs from day one
A startup’s obligations vary significantly depending on whether it operates as a sole trader or as a limited company (sociedad limitada). Most startups with investors or more than one founder will opt for the limited company structure, which carries the following formal obligations from day one:
- Registration with the AEAT and, where applicable, with the IAE (business activity tax)
- Quarterly VAT returns (Form 303) and annual summary (Form 390)
- Income tax withholding (Forms 111, 115, 123) if there are employees, suppliers subject to withholding or rental payments
- Accounting records in accordance with the General Chart of Accounts (journal, inventories and balance sheets)
- Annual accounts and filing with the Companies Registry
- Corporate Income Tax (Form 200) with annual close
A competent accounting firm will cover all of these services systematically and keep you up to date without requiring the founders to invest time in understanding each one.
Five criteria for evaluating an accounting firm as a startup
1. Specific experience with startups and technology companies
Startups encounter situations that a traditional family business accounting firm simply does not know: stock options and phantom shares for employees, contracts with international platforms, payments in foreign currencies, intra-Community transactions from year one, investment rounds using SAFEs or convertible loans. Ask how many startups are in their portfolio and which cases they have managed.
2. Availability and response time
Startups make decisions quickly and need fast answers. A provider that takes three business days to respond to a question about the tax treatment of an international contract is not suited to the pace of a growing company. Ask about typical response times and how they handle urgent queries.
3. Integration with digital tools
Verify that they work with the software you already use or plan to use: Holded, Conta, Xero, QuickBooks or others. An accounting firm that works only with proprietary software or requires paper documentation to be sent in 2026 is a warning sign.
4. Scalability of service
A firm that is right for a pre-seed startup is not necessarily right for a Series A company. Verify that the firm can grow with your business: managing payroll for more employees, handling operations in multiple countries, coordinating with an outsourced CFO or preparing the reporting that investors require.
5. Transparent pricing with no surprises
Insist on a fixed-scope proposal that specifies what is included and what is charged additionally. Company incorporation, employment contracts, grants management and investor reporting are typically additional services not covered by the base monthly retainer.
Services not to overlook in the first meeting
Beyond bookkeeping and returns, there are services a startup needs in the first few months that are worth agreeing from the outset:
- Company incorporation: including the drafting of articles of association with clauses relevant to startups (right of first refusal, drag-along, basic anti-dilution)
- Founders’ agreement: the initial shareholders’ agreement defining relations between co-founders
- Employment contracts: first contract, confidentiality clauses, intellectual property assignment
- Day-one formal obligations: employee registration with Social Security, data file registration
How the service should evolve
The accounting relationship that works for a two-person startup with €50,000 in annual revenue will not work for a thirty-person company with €2 million in revenue and a VC investor on the cap table. The transition points to watch are:
- When monthly revenue exceeds €100,000, the volume of transactions requires more structured bookkeeping and more frequent management accounts
- When the company hires its first employees in another country, payroll compliance becomes a cross-border issue requiring specialist knowledge
- When a financing round is underway, the accounting firm needs to be able to prepare investor-grade financial statements and, ideally, coordinate with the legal team on due diligence
At each transition point, assess whether the current provider can genuinely cover the new requirements or whether it is time to upgrade to a firm with broader capability.
How BMC can help
Our startup package covers everything a newly incorporated company needs in its first two years: incorporation, bookkeeping, quarterly and annual returns, basic tax advisory and support with first employment contracts. The package is designed to grow with the company: as the startup gains traction, the service scales towards more complex accounting and strategic tax management.
If you are in the incorporation phase or have just launched, contact us. A 30-minute meeting is enough to understand what you need and offer a proposal tailored to your current situation.
