Startup accounting RFP: the information firms need to quote accurately

An accounting RFP can be a short document. Start with legal entities, tax classifications, operating states, headcount, accounting software, and the date through which the books are reconciled. Give a practical estimate of monthly activity without sharing sensitive customer or employee records in the first inquiry.

Describe how the company earns revenue. Annual subscriptions, project billing, ecommerce settlements, and usage invoices create different accounting work. Include financing instruments, inventory, foreign transactions, or related-party balances that need review.

Name each bank, card, processor, payroll provider, lender, and billing system. State which reports are available and who supplies them. If your team currently enters bills or approves payments, say so. A proposal should distinguish preparing records from authorizing money movement.

Specify the expected monthly package: reconciled balances, P&L, balance sheet, cash flow information where needed, adjustment support, and open questions. Set a requested delivery cadence and ask the firm to identify assumptions that could prevent it meeting that date.

Historical cleanup deserves its own dates, scope, price, and acceptance criteria. Say whether source statements exist and whether prior tax returns agree to the ledger. An unexplained opening balance is a dependency to resolve, rather than something to absorb silently into the monthly fee.

For tax work, list required federal and state returns, extensions, estimates, notices, and information returns. Ask the provider to state what it will prepare and who signs or represents the taxpayer. The IRS's preparer guidance is useful when checking qualifications and representation.

Ask every firm for the same pricing breakdown, named delivery team, review process, software ownership, onboarding timetable, and departure process. Have it identify exclusions and fee triggers such as another entity, more accounts, or additional states.

Close with one representative scenario, such as an annual subscription received before service starts. Request a short explanation of the records and review required. This tests the provider's reasoning without asking it to perform unpaid cleanup.

When proposals arrive, record assumptions beside each fee. The decision should compare a year of defined work and the internal responsibilities that remain with your team.