Starting a biotech company is thrilling: it involves cutting-edge science, ambitious goals, and the hope of making a meaningful difference. However, behind every successful biotech startup lies a complex web of financial intricacies. As specialists in pharmaceutical accounting services for biotech, we at CTMP Accountants understand that managing your finances is far from straightforward. You’re navigating R&D costs, regulatory compliance, grants, and forecasts, all while trying to scale. 

If you’re bearing that burden alone, we’re here to help. Give us a call on 0208 776 0200 or email info@ctmp.co.uk, and we’ll guide you through the financial maze so you can focus on what you do best: science. 

 

Why Biotech Startups Need Specialist Accounting

Biotech startups operate differently from many other businesses. Here are a few key reasons: 

• Complex R&D expenditures: Your costs may include lab consumables, clinical trials, or regulatory filings. 

• Grant funding and tax credits: You may be eligible for R&D tax credits or grants, but claiming them requires careful accounting. 

• Regulatory obligations: You must generate financial statements that comply with both accounting standards and industry-specific rules. 

• Cash-burn management: Forecasting liquidity is critical, as biotech companies often have long lead times before generating cash. 

Without reliable pharmaceutical accounting services for biotech companies, you risk mismanaging expenses, missing tax benefits, or failing to meet investor expectations. 

Core Accounting Services Biotech Startups Need

Here are the top accounting services that biotech companies should prioritise and how CTMP can help. 

1. Bookkeeping & Management Accounts

Keeping accurate, real-time books is essential. We prepare: 

• Monthly or quarterly management accounts 

• Key performance indicator (KPI) reporting, tailored to your scientific milestones 

• Cash-flow forecasts so you can plan your runway 

This isn’t just bookkeeping, it’s proactive financial insight. 

2. Audit & Assurance

Even if you’re not legally required to have an audit, it can be hugely valuable: 

• Increases trust with investors, partners, and grant bodies 

• Helps detect or deter fraud 

• Provides a clean set of audited accounts for fundraising or exits 

CTMP has a long history of delivering hassle-free audits, underpinned by our ICAEW-registered expertise. 

3. R&D Tax Credits & Grant Accounting

We help biotech firms to: 

• Identify and substantiate eligible R&D expenditure 

• Structure and document claims for the R&D tax credit 

• Report correctly in the financial statements 

Our team’s experience in pharmaceutical accounting services for biotech allows you to maximise the financial support available. 

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4. VAT Planning & Compliance

VAT in the biotech sector can be complex, particularly in relation to exports, research supplies, and collaborations. We provide: 

• VAT health checks to spot common errors 

• Advice on the right VAT scheme for your business model 

• Ongoing support to ensure you stay compliant and efficient 

5. Virtual Finance Director (VFD)

Hiring a full-time CFO for a startup can be a costly endeavour. Our Virtual Finance Director service gives you: 

• Strategic financial leadership 

• Forecasting and budgeting tailored to biotech 

• Risk management and compliance expertise 

• A scalable solution that grows with your business 

6. Tax Disputes, Planning,And Investigations

Navigating HMRC enquiries, whether on R&D claims, VAT, or PAYE, can be daunting. We act on your behalf in: 

• Self-assessment or VAT investigations 

• IR35 enquiries 

• Long-term tax planning to align with growth strategy 

Our goal is to protect your interests, allowing you to stay focused on innovation.

Mitigating Risk For Biotech Companies

Biotech startups inherently face risks, including funding delays and regulatory hurdles. With our pharmaceutical accounting services for biotech, we help you manage: 

• Cash flow risk with robust modelling 

• Regulatory risk via compliant reporting and internal controls 

• Strategic risk via advising on grant funding, exit strategy, and investor readiness 

By partnering with us, you gain access to a comprehensive accounting service that supports both scientific growth and financial resilience. 

Why Choose CTMP For Biotech Accounting

At CTMP, we combine decades of experience in accountancy with in-depth knowledge of the pharmaceutical sector. Our strengths: 

• ICAEW-registered accountants 

• Sector expertise in pharmaceutical accounting and biotech 

• Proven track record working with SMEs and high-growth businesses 

• Proactive, friendly support, not just number-crunchers 

Whether you’re pre-revenue or scaling up for the next funding round, we can provide the financial backbone you need. 

Conclusion

Growing a biotech startup is an extraordinary journey, but it’s also financially demanding. At CTMP, we provide pharmaceutical accounting services for biotech that go beyond compliance. We offer strategic financial guidance, industry-specific expertise, and a collaborative partnership to help you scale your business. 

If you’re ready to build a stable financial foundation for your science, let’s talk.  

Call 0208 776 0200 or email info@ctmp.co.uk to arrange a consultation today. 

Frequently Asked Questions (FAQs) for Pharmaceutical Accounting Services

Q1: When should a biotech startup hire an accountant?

A: Ideally, early, especially before making grant claims, applying for funding, or preparing financial statements. 

Q2: Can CTMP handle R&D tax credits?

A: Yes, we specialise in identifying eligible costs and preparing robust claims. 

Q3: Do biotech firms need an audit?

A: Not always legally, but audits build credibility with investors and regulators. 

Q4: How does your VFD service work for biotech companies?

A: We embed with your leadership team remotely, providing strategic oversight, forecasting, and financial governance. 

Q5: What if HMRC questions our R&D claims?

A: We represent you in enquiries, helping negotiate, provide evidence, and protect your interests. 

Q6: What financial reports are most important for early-stage biotech firms?

A: Cash-flow forecasts, management accounts, and R&D expenditure reports are essential for tracking runway and supporting investor discussions. 

Q7: How can biotech startups improve cash-flow stability?

A: Careful budgeting, grant tracking, timely VAT returns, and strategic cost planning help maintain liquidity during long research cycles. 

Q8: Do biotech companies need sector-specific bookkeeping?

A: Yes. Biotech bookkeeping must track R&D costs, grants, clinical trial expenses, and inventory accurately to meet compliance and investor expectations.