Biotech Bookkeeper Job Description: Grant Accounting, R&D Cost Allocation, Procure-to-Pay Management

Why Biotech Bookkeeping Is a Specialized Role

For a biotech founder, the lab is where value is created, but the books are where the company’s survival is determined. While juggling promising R&D with the realities of runway and grant compliance, the temptation is to hire a generalist bookkeeper to “handle the numbers.” This approach often overlooks the unique financial complexities of the biotech industry. A standard bookkeeper can manage invoices, but a specialist protects your most critical assets: your grant funding and your intellectual property.

This guide outlines specific biotech startup bookkeeper responsibilities, explains why the role is fundamentally different, and provides a framework for hiring the right financial steward. It’s about moving from basic transaction recording to strategic financial management that accelerates your scientific progress. For more on structuring your team, see Biotech Finance Teams: Specialized Positions and the complete finance team sequencing guide.

The Core Difference: Grant Funding vs. Revenue

A common misconception is that all bookkeeping is the same. For biotech startups, this assumption creates significant risk. The core difference lies in the nature of your funding. Unlike a SaaS company booking recurring revenue, your primary capital is often restricted and highly regulated. A specialist understands that grant funding from bodies like the NIH or SBIR/STTR is non-dilutive capital, not revenue, with strict rules and audit risks.

This distinction is not just semantic; it has profound compliance implications. In the US, federal regulations like the Uniform Guidance (2 CFR 200) dictate how federal grant funds can be spent. In the UK, bodies like Innovate UK have similarly stringent requirements. A bookkeeper unfamiliar with these rules might miscategorize an unallowable cost, such as marketing expenses, against a grant. This can trigger clawbacks, jeopardize future funding, and create a time-consuming audit distraction.

Mishandled grant accounting and compliance is a primary pain point that can disqualify a startup from future non-dilutive funding. The role of a biotech bookkeeper is not simply a record-keeper but a forward-looking steward of financial data. They build systems to ensure every dollar is spent, tracked, and reported correctly from day one.

The Three Pillars of Biotech Startup Bookkeeper Responsibilities

The most effective biotech bookkeepers build their function around three critical pillars that directly address the industry's unique challenges. Understanding these biotech bookkeeping responsibilities provides a clear picture of the value this role delivers beyond basic accounting.

Pillar 1: Proactive Grant Accounting and Compliance Management

This is the most defining aspect of the role. It involves more than just logging transactions; it’s about creating a bulletproof system for managing grant funds. This includes setting up the chart of accounts to segregate grant funds from equity financing, meticulously tracking direct and indirect costs, and preparing for audits.

For US-based startups, this means understanding the specific requirements of agencies like the National Institutes of Health (NIH). A key responsibility is ensuring the timely submission of financial reports like the Federal Financial Report (SF-425) is required by granting agencies. This report details how federal funds have been expended and is non-negotiable for maintaining good standing. A skilled bookkeeper will have the month-end close process dialed in to produce these reports accurately and on schedule, preventing frantic, last-minute scrambles that can lead to errors.

Pillar 2: Granular R&D Cost Allocation and Burn Rate Tracking

Biotech startups live and die by their burn rate, and a simple, top-level view of cash out is insufficient. Founders and investors need to know the cost associated with each research program to make informed decisions. Failure to allocate costs accurately across R&D phases, labs, and preclinical trials obscures the true burn rate and misguides strategic budgeting.

A thoughtful setup of the accounting system is essential for proper cost allocation for biotech startups. Common accounting software for startups includes QuickBooks Online Advanced for its class/project tracking, before graduating to systems like NetSuite. This feature allows a bookkeeper to tag every expense to a specific R&D program, grant, or department.

For example, a startup with two programs would structure its chart of accounts for clarity:

6000 R&D Expenses
6100 Program A - Compound 123
6110 Salaries & Wages
6120 Lab Supplies & Reagents
6130 CRO Services
6200 Program B - Platform Tech
6210 Salaries & Wages
6220 Lab Supplies & Reagents
6230 CMO Services
6300 Unallocated R&D (e.g., shared equipment maintenance)

This structure, combined with class tracking for funding sources (e.g., “NIH Grant,” “Seed Equity”), provides a multi-dimensional view of spending.

A scenario we repeatedly see is a single invoice for shared resources. Imagine a $10,000 invoice for lab reagents. A general bookkeeper might code this to a generic “Supplies” account. A biotech bookkeeper, guided by lab managers, allocates it. In QuickBooks, they would split the transaction: $7,000 coded to account 6120 - Program A and class NIH Grant, and $3,000 to account 6220 - Program B and class Seed Equity. This granular tracking is crucial for grant reporting and for calculating R&D tax credits.

Proper clinical trial expense tracking also depends on this discipline. As startups approach clinical stages, managing long-term CRO and CMO contracts requires accrual accounting. If a startup pays $120,000 upfront for a six-month toxicology study, a cash-basis bookkeeper records a single $120,000 expense. Under US GAAP or FRS 102, an accrual-based bookkeeper recognizes only $20,000 in expense each month for the six-month duration. This correctly matches the expense to the period in which the research occurred, providing a more accurate picture of monthly burn.

Pillar 3: A Robust Procure-to-Pay Cycle and Vendor Management

Inconsistent vendor payment processes can cause supply chain delays and strain relationships critical to research milestones. When a key reagent shipment is held up because an invoice is sitting in a founder’s inbox, research grinds to a halt. The biotech vendor payment process needs to be systematic to prevent these operational bottlenecks.

An experienced bookkeeper implements a simple procure-to-pay system, often starting with a basic Purchase Order (PO) process. Before a lab manager orders a significant item, they submit a PO that gets approved. The bookkeeper logs this PO, creating a record of upcoming liabilities. When the invoice arrives, it’s matched against the approved PO before payment is scheduled. This prevents surprise expenses, provides a clear audit trail, and gives founders visibility into committed spending, improving cash flow forecasting.

Crafting the Job Description: A Biotech Bookkeeper Template

With a clear understanding of the role, you can craft a job description that attracts the right candidates. Here is a template for hiring a bookkeeper for your biotech startup.

Job Title: R&D Grant Accountant (or Biotech Bookkeeper)

A note on titles: “Bookkeeper” is suitable for a role focused purely on transactional accuracy. If the role involves significant grant management and R&D cost analysis, a title like “R&D Accountant” or “Grant Accountant” may better reflect the strategic nature of the responsibilities.

Key Responsibilities

• Manage all aspects of day-to-day bookkeeping, including accounts payable, accounts receivable, and payroll in QuickBooks or Xero.
• Administer government grant accounting, ensuring compliance with all agency requirements (e.g., NIH, Innovate UK). This includes cost tracking, effort reporting, and preparation of financial reports like the SF-425.
• Implement and maintain a granular chart of accounts and class tracking system to monitor R&D expenses by program.
• Perform month-end close procedures, including bank reconciliations, accrual entries for preclinical and clinical trial expenses, and balance sheet reconciliations.
• Manage the procure-to-pay process, including purchase order implementation and vendor payment schedules.
• Assist with audit preparation and provide necessary documentation for grant audits and financial reviews.
• Provide founders with regular reports on cash flow, budget vs. actuals, and burn rate by program.

Qualifications and Experience

• Proven experience in bookkeeping or accounting within a biotech or life sciences R&D environment.
• Demonstrable experience with managing grant accounting for biotech startups, specifically with NIH, SBIR/STTR (for US) or Innovate UK (for UK) grants.
• Proficiency with QuickBooks Online Advanced or Xero, particularly with class and project tracking features.
• Solid understanding of US GAAP or FRS 102 principles, especially accrual accounting and R&D expense recognition.
• Exceptional attention to detail and organizational skills.

For most early-stage companies, a full-time hire is unnecessary. The reality for most startups is more pragmatic: a fractional bookkeeper with biotech grant experience may work 10-15 hours per week for a pre-seed or seed-stage company. This provides access to specialized expertise without the overhead of a full-time employee. As the company progresses to Series A, with multiple active grants, you may transition to a full-time role or hire a Financial Controller for enhanced audit readiness.

From Liability to Strategic Asset

A biotech bookkeeper is not a commodity hire; they are a strategic partner. Their role extends far beyond recording history. They architect the financial systems that protect your company from compliance risks, provide clarity for critical R&D investment decisions, and build a scalable foundation for growth.

This role ensures every dollar of precious non-dilutive capital is accounted for and deployed in compliance with strict regulations. It transforms a messy spreadsheet of expenses into a clear, program-by-program analysis of your burn rate, giving you and your investors confidence to plan the next milestone. The practical consequence tends to be a more stable, auditable, and strategically-minded operation.

As a founder, evaluate your current financial processes against the three pillars. Can you easily report spending against a specific grant? Do you know your exact burn rate for Program A versus Program B? Is your vendor payment process a source of friction? If the answer to any of these is no, it’s time to invest in a specialist who can turn your financial function from a liability into a strategic asset. Continue by learning how to build your finance team.