Team Digits

QuickBooks may have been the go-to for years, but it's not designed for firms that are ready to scale. Read why growth-minded firms choose Digits.

Freeplay cut accounting costs by 50% by switching to Digits. The seed-stage AI startup replaced fragmented software and consulting with one integrated platform.

Spearus switched from QuickBooks to Digits after finding traditional tools clunky. The intuitive platform transformed accounting from a chore to an enjoyable task.

If you've been using Pilot, you may feel left out of some of the more advanced bookkeeping and accounting features available today, including real-time insights and access to seamless automation.

Abra replaced QuickBooks and manual Excel processes with Digits, reclaiming a full workday each month. AI bookkeeping now keeps their financial model accurate and up-to-date.

Partiful replaced spreadsheet-based accounting with Digits, gaining self-serve financial reports, AI-driven category insights, and faster decision-making. Read the case study.

The Third Place found Digits after Bench and Pilot proved expensive and inaccurate. Now, bookkeeping is hands-off with fast, proactive responses from the Digits team.

Particle News replaced QuickBooks, external bookkeepers, and multiple tools with Digits. The unified platform cut costs and saved the busy founder valuable time.

Startup taxes don't have to be complex. Our guide breaks down the requirements and rules all founders should know so you can approach your taxes with confidence.

Discover the small business tax rates and brackets for founders and startups. Learn how much tax your business may pay, as rates vary by structure and state.

What is COGS, and why does it matter? Learn how to do a COGS calculation for your SaaS startup to manage finances and impress investors.

The 7 startup funding stages are pre-seed, seed, Series A, Series B, Series C, Series D+, and IPO. Each stage has different investor expectations, valuations, and use of funds.

Discover the top reasons startups fail and get actionable insights from founders who've been there. Learn how to set your startup up for success.

Do you know when it's appropriate to hire a 1099 vs. a W-2 worker? Here are the rules business owners must follow, plus pros and cons of each work relationship type.

Check out our guide to learn how to decide between a C corp, an S corp, or an LLC for your startup.

Discover the 6 best bookkeeping services for startups to simplify your accounting needs. Plus, learn important steps to set up your bookkeeping.

65% of Fortune 500 companies incorporate in Delaware for business-friendly laws, the Court of Chancery, and investor familiarity. You don't need to operate there to incorporate.

Unsure if you need an accountant for your small business? Discover when to hire one, the benefits of a small business accountant, and their services.

The sudden shutdown of Bench should serve as a wake-up call for all business owners: Even seemingly stable service providers aren't immune to disruption. While you can't predict the future, these proactive steps can help protect your business from similar events in the future.

AI accounting automates bookkeeping, reconciliation, and expense tracking. Learn how AI tools like Digits reduce manual work, improve accuracy, and free finance teams to focus on strategy.

Ignoring this tax filing isn't an option. Unfortunately, we have seen dozens of new startups miss this deadline as they operated under the assumption that they were not profitable, so no tax filings were needed.

If you're exploring alternatives to Puzzle, you're not alone. This guide will walk you through some of the best Puzzle alternatives on the market today so you can find the perfect accounting software for your growing business.

The R&D tax credit lets startups offset up to $500,000 in payroll taxes annually. Qualifying activities include developing new products, improving processes, or building software.

From leveraging the R&D credit to planning for a tax-free exit with QSBS, these strategies can make a substantial impact on your business's growth and profitability.

To help you get ahead of your business tax filings, we've mapped out every critical deadline for the 2024 tax year (most of which you'll tackle in 2025), from federal to state requirements.

One of the most common questions we receive from startup founders is, "When should we convert from an LLC to a C corporation?" While the transition may appear straightforward, several legal and tax considerations must be considered.

Mistakes with 409A valuations are all too common in startups — but they don't have to be. From errors in execution to the misconception that they're unnecessary, these pitfalls can lead to severe tax penalties, unhappy employees, and wary investors.

QSBS isn't exactly straightforward. There's plenty of misleading information out there, and the nuances can trip up even seasoned founders. The good news? You don't have to tackle this alone.

Common startup tax deductions include office expenses, software subscriptions, professional services, marketing costs, and employee benefits. Learn IRS requirements for ordinary and necessary expenses.

Learn everything you need to know about 1099-NEC forms, including who needs to file, key deadlines, and tips to stay compliant with IRS regulations.

Whether you're hearing about BOI reporting for the first time or scrambling to meet the original deadline, this article will ensure you understand exactly what is happening and what you need to do next.

Accounting for startups is key for gaining investor confidence. Learn how to set up an accounting system.

Fundraising is one of the biggest challenges startups face. To help you find the right way to scale your startup successfully, here are the 7 most important funding sources.

Learn what burn rate is, why it's crucial for your startup's financial health, and how to calculate it accurately.

Over hundreds of years, the general ledgers has come a long way. Here's how they've changed to meet the needs of modern companies.

Startup bookkeeping involves recording transactions, reconciling accounts, and maintaining financial records for investor readiness and tax compliance. Learn CPA-recommended best practices.

Without a clear overview of your finances, it's impossible to calculate your remaining runway or adjust your burn rate.

Startup accountants handle bookkeeping, financial forecasting, tax planning, and investor reporting. Learn how to choose between in-house, fractional, or AI-powered accounting solutions.

Digits now offers tax and budgeting & forecasting plans. Join us to make more informed decisions, maintain better financial health, and streamline tax filings. Become a customer today!

If you're a startup founder or an entrepreneur frequently engaging with independent contractors or freelancers for services, you should familiarize yourself with the Internal Revenue Service's (IRS) Form 1099-NEC – a tax document introduced by the IRS in 2020 to report non-employee compensation.

Accounts receivable (AR) is all about the outstanding money owed to your business for either goods or services received, but not yet paid for, standard practice for a lot B2B transactions and startups, especially in the SaaS space.

During the lifecycle and evolution of a startup, certain scenarios will make the founder feel the need for a Chief Financial Office (CFO) to lean on and collaborate with. Hiring a full-time CFO immediately, however, is likely not the right choice and a fractional CFO is likely the startup's best bet to bridge the gap until they are ready to commit to a full-time CFO.

The Rule of 40 states that a SaaS company's revenue growth rate plus profit margin should equal or exceed 40%. It balances growth and profitability as a measure of company health.

As a startup founder, you have a lot on your plate, including managing finance and tax details for your business and your employees/contractors. One important document is the IRS W-9 form. Here's what you need to know about W-9s, including their significance to your business and how to handle them effectively.

Tax season is a dizzying time for anyone, especially startup founders. The last thing you want to be dealing with are forms, withholdings, or deadlines — you've got your business to run! One key piece of the tax season puzzle is a Form 1120, aka the Income Tax Return. Here's a startup founders guide to understanding you Form 1120.

In simple terms, depreciation is an accounting method that allows a company to spread the cost of an expensive purchase over a period of time, rather than all at once. This not only eases the immediate financial burden but also smooths out expenses over time. This process is vital for budget planning, particularly for start-ups, as it enables more predictable financial management.

An income statement, often referred to as a Profit & Loss (P&L) statement, is a financial report that shows your business profitability over a specified period. It presents your revenue and deducts your expenses and losses, shedding light on your company's financial health.

In the business world, the term "per diem" is quite common, but its meaning and application often confuse individuals. To clear these misconceptions, let's dive into the definition, implications, and operations of a "per diem" system.

Understand the pitfalls of running a startup without the help of an accountant, as well as the benefits of partnering with one.

Bookkeeping records daily transactions; accounting analyzes financial data for strategic decisions. Learn the difference and when startups need each service.

Cash accounting records transactions when money moves; accrual records when earned or incurred. Most startups should use accrual accounting for accurate financial reporting and investor readiness.

Starting a new business venture is an exciting time, filled with creativity and ambition. However, amidst the enthusiasm, one crucial aspect that many startup founders overlook is accounting.

Hire an accountant when starting a business (for entity structure advice), during rapid growth, before fundraising, or when tax complexity increases. Signs include spending hours on books each month.

Definitely one for the books! Digits kicked off the 2021 Digital CPA conference in style for attendees from the top tech-forward firms at an exclusive, invite-only evening full of magic where we took over the Dream Hotel in Nashville!

After two years of heavy development, we've announced Digits for Expenses! We couldn't be more humbled by the support and excitement we've seen from countless business owners and accountants across the country and around the globe, and we're working tirelessly to get them into our Early Access program.