Job Description for a Deeptech Financial Controller: R&D Accounting, Project Controls, Reporting

Why a Deeptech Financial Controller Is Different

For deeptech founders, financial management feels different. Your world revolves around long research cycles, complex grant requirements, and significant capital expenditure long before the first dollar of revenue. The standard startup finance playbook, written for SaaS companies scaling monthly recurring revenue, does not apply. Attempting to force-fit that model creates critical risks. Misclassifying R&D costs can distort your financial health, a lack of project-level controls lets prototype expenses spiral, and delivering inaccurate reports to investors or grant agencies can erode the credibility you have worked so hard to build. Hiring the right financial leader is not just about bookkeeping; it is about securing your company's future. This guide outlines the unique controller responsibilities in deeptech startups and provides a template to help you find the right person to manage your most critical assets: capital and time.

Foundational Understanding: A Deeptech Controller Is Not a SaaS Controller

Why can't you just hire a controller with general startup experience? The answer lies in the fundamentally different business models. A SaaS controller's world is governed by predictable, recurring revenue and the accounting principles that support it. Their expertise centers on standards like ASC 606 for revenue recognition from customer contracts and ASC 350-40 for capitalizing internal-use software development costs.

The deeptech financial model is the polar opposite. Revenue is often lumpy, coming from large government grants or equity funding rounds, not customers. The primary financial challenge isn't revenue recognition but the meticulous management of research and development costs. The guiding principle here is US GAAP standard ASC 730: Research and Development Costs. This standard dictates a completely different approach to spending. While a SaaS company capitalizes much of its development spend, ASC 730 requires most R&D costs to be expensed as incurred. The distinction is fundamental. Hiring a controller who does not grasp this difference is like asking a software developer to design a fusion reactor. They may understand the basic language, but they lack the specific, non-negotiable expertise required for startup financial oversight in a deeptech environment.

Pillar 1: Mastering R&D Cost Capitalization

For US companies, ASC 730 is the rulebook for R&D accounting. It requires that the vast majority of R&D costs, including engineer salaries, prototype materials, and lab consumables, be treated as operating expenses in the period they are incurred. The critical exception is for tangible assets with an 'alternative future use'. This means a piece of lab equipment or machinery that can be used for other projects or has a resale value can be capitalized and depreciated over its useful life. Everything else is expensed.

This accounting treatment often contrasts with tax requirements. For US companies, Section 174 of the tax code requires specified R&D expenditures to be capitalized and amortized. In the UK, where companies typically follow FRS 102, the rules for capitalizing development costs can be more permissive than US GAAP. A competent deeptech controller must navigate these parallel, and sometimes conflicting, accounting and tax rules across jurisdictions. They ensure the company's books are compliant with accounting standards while simultaneously maximizing tax benefits. The practical consequence tends to be maintaining two separate sets of records: one for financial reporting (GAAP/FRS 102) and one for tax compliance.

Consider two common deeptech expenditures to illustrate the rule:

• Capitalizable Asset (e.g., CNC Machine): A 5-axis CNC machine used to fabricate parts for multiple projects has an 'alternative future use'. Under US GAAP, you would capitalize this machine as a tangible asset and depreciate it over its useful life because it will be used for future R&D and retains value.
• Expensed Material (e.g., Prototype Components): Aluminum stock and custom circuit boards for a single-use prototype have no future use. These materials are consumed entirely by one project and must be expensed as R&D costs when incurred.

Pillar 2: Implementing Rigorous Hardware Project Accounting

How do you get a handle on your prototype costs and stop feeling like you are flying blind on your biggest expense? The answer is project-based accounting. At this stage, those running finance usually face the challenge of a generic chart of accounts where all R&D salaries, materials, and contractor costs are lumped together. This makes it impossible to know the true cost of developing a specific component. Implementing project-level controls provides the visibility needed to make critical decisions about resource allocation and project viability. The lesson that emerges across cases we see is that once project accounting is implemented, founders often find key projects cost 25-40% more than estimated.

This isn't about complexity, it is about structure. In QuickBooks or Xero, this can be accomplished using classes, locations, or project tracking features. You can structure your chart of accounts to isolate costs for each major R&D initiative, allowing you to generate a profit and loss statement for each project. For financial management for hardware startups, this is non-negotiable. It allows you to answer questions like, "What is the fully-loaded cost of Project Alpha?" and "Are we over budget on materials?" This detail is essential for managing your runway and making informed strategic pivots.

Example Project-Based Chart of Accounts Structure

• 6000 - Research & Development Expenses
  • 6100 - Project Alpha: Battery Development
    • 6110 - Salaries & Wages
    • 6120 - Raw Materials
    • 6130 - Third-Party Testing
  • 6200 - Project Beta: Casing & Industrial Design
    • 6210 - Salaries & Wages
    • 6220 - Prototyping Materials
    • 6240 - Contractor Fees

Pillar 3: Building Investor & Grant-Ready Startup Financial Oversight

What do your investors and grant agencies really need to see, and how can you produce it without a week-long fire drill? For deeptech startups, standard financial statements are just the starting point. Stakeholders providing non-dilutive funding, especially from US government sources like SBIR, STTR, and DoD grants, have stringent reporting requirements. These are governed by compliance frameworks like FAR (Federal Acquisition Regulation) and Uniform Guidance, which demand a high degree of fund traceability and cost documentation.

This means your financial system must be able to produce more than a standard P&L. It needs to generate budget versus actual reports for each specific grant and R&D project. This reporting shows precisely how funds were spent against the proposed budget, demonstrating responsible stewardship of capital. The goal is to produce these reports accurately and on-demand. A well-designed financial system, combining a structured chart of accounts with project tracking, makes this possible. For board meetings, this same report is a powerful narrative tool. It moves the conversation from a simple review of total cash burn to a strategic discussion about capital allocation and project performance, building confidence and justifying future funding rounds. Investor reporting for startups in the deeptech space is about demonstrating disciplined execution, and project-level financials are the primary evidence.

Sample Budget vs. Actuals by Project Report

A typical budget versus actuals report for key stakeholders would break down spending like this for a given quarter:

• Project Alpha: Budgeted $150,000, Actual $165,000 (10.0% over budget).
• Project Beta: Budgeted $90,000, Actual $85,000 (5.6% under budget).
• Unallocated R&D: Budgeted $25,000, Actual $30,000 (20.0% over budget).
• Total R&D Spend: Budgeted $265,000, Actual $280,000 (5.7% over budget).

A Job Description Template for Deeptech Controller Responsibilities

Job Title: Financial Controller

Reports to: CEO / Founder

Company Stage: Pre-seed to Series B Deeptech

About Us

[Brief, 1-2 sentence description of your company's mission and technology.] We are an early-stage, venture-backed deeptech company poised to revolutionize [Your Industry]. As we scale our R&D efforts and prepare for commercialization, we are seeking a hands-on Financial Controller to build and lead our finance function.

The Role

The Financial Controller will be a key strategic partner to the founding team, responsible for all aspects of financial management, reporting, and compliance. This is not a typical controller role. You will be building the financial infrastructure for a company with long development cycles, significant R&D investment, and complex grant funding. You will provide the financial discipline and insight needed to manage our runway and support our long-term growth.

Key Controller Responsibilities

• Financial Reporting & Compliance: Own the month-end close process and prepare timely, accurate financial statements in accordance with US GAAP or FRS 102. Ensure the company is compliant with all relevant financial regulations.
• R&D and Project Accounting: Implement and manage a robust project accounting system to track costs for all major R&D initiatives. Apply a deep understanding of ASC 730 to ensure correct expensing and capitalization of R&D costs. Deliver project-level budget vs. actual analysis to leadership.
• Grant Management & Reporting: Oversee the financial administration of all government and private grants. Ensure compliance with all reporting requirements, including those under FAR and Uniform Guidance for US grants. Prepare and submit all required financial reports to granting agencies.
• Treasury & Cash Management: Develop and maintain detailed cash flow forecasts and runway models. Manage banking relationships and day-to-day treasury functions to optimize capital.
• Tax & Audit: Partner with external accountants on all tax matters, including R&D tax credit claims under Section 174 (US) or the HMRC R&D scheme (UK). Serve as the primary point of contact for financial audits.

Qualifications & Experience

• Proven experience as a Controller, Accounting Manager, or Senior Accountant in an R&D-heavy environment (e.g., hardware, biotech, deeptech, or advanced manufacturing).
• Expert knowledge of US GAAP, particularly ASC 730 (Research and Development Costs), is essential for US-based roles. For UK-based roles, experience with FRS 102 is required.
• Direct experience with government grant accounting and compliance (e.g., SBIR, STTR, DoD) is strongly preferred.
• Hands-on proficiency with accounting software like QuickBooks or Xero is required.
• Experience in a fast-paced, early-stage startup environment (Pre-seed to Series B) is a significant plus.
• CPA or equivalent qualification is preferred.

Practical Takeaways for Founders

A deeptech controller is far more than a bookkeeper; they are a strategic guardian of your company's capital. Their role is built on three pillars: correctly applying R&D accounting rules, implementing rigorous project-level cost controls, and building a reporting system that satisfies both investors and grantors. It requires a different mindset from that of a SaaS controller, one focused on cost management and compliance over revenue recognition and sales metrics.

If you are a pre-seed or seed-stage founder, you can lay the groundwork now. Start by taking these three steps:

1. Review your spending: Look at your last six months of expenses. Can you clearly distinguish between tangible assets with an 'alternative future use' and one-off prototype expenses? This is the first step toward ASC 730 compliance.
2. Implement project tracking: Use the class or project features in QuickBooks or Xero to tag every R&D-related expense to a specific project. Even a simple setup provides immense clarity.
3. Upgrade your investor reporting: For your next board update, go beyond a simple P&L. Build a basic budget vs. actual report for your top two or three projects. This demonstrates financial discipline and a command of your business drivers.

Almost every deeptech startup reaches the point, typically post-Series A, where this role becomes critical. Getting the right financial leader in place is an investment that pays for itself by extending runway, increasing credibility, and enabling more informed strategic decisions. To continue the hiring sequence, visit our Building Your Finance Team hub.

Frequently Asked Questions

Q: At what stage should a deeptech startup hire a financial controller?
A: While founders can manage basic bookkeeping initially, a dedicated controller becomes critical around the Series A stage. This is when grant reporting, project accounting, and investor demands intensify. Hiring at this point ensures financial systems are built to scale, preventing costly mistakes and extending your runway.

Q: Can a fractional controller handle these deeptech responsibilities?
A: Yes, a fractional controller can be a cost-effective solution, especially for seed-stage companies. However, it is critical that they have specific experience with R&D accounting (ASC 730), project-level controls, and government grant reporting. Generalist startup finance experience is often not sufficient for a deeptech environment.