10 Whys Startups Must Hire a Bookkeeper

Even if the idea of an accountant seems redundant to you, the least a startup should consider, is the services of an experienced and skilled bookkeeper.

Besides, becoming a bookkeeper yourself is neither realistic nor very promising.

To make things simpler for you, below you will find 10 whys and wherefores you should certainly think of employing one:

1. Concentrate on your Primary Needs A newly founded business requires your full attention, especially on certain aspects such as strategy, marketing, and funding. Bookkeeping, though highly important, should not distract you from these areas.
2. Steer Away from Anything you do not Fully Comprehend  Few businessmen have adequate knowledge on finance, accounts payable, accounts receivable and taxation; and the problem is that mistakes in such matters can prove disastrous for business. So, it much wiser to leave anything you do not really grasp to a professional.
3. Maintain a Balanced Way of Life  Startups demand a lot of your time and effort, but so does your health and personal life, especially if you have a family with children. By assigning time-consuming burdens to others, you will be able to maintain a balanced way of life.
4. Get Another Pair of Eyes to HelpNo matter how skilled and knowledgeable you may be in your field, having another pair of eyes to watch things out for you and offer advice when needed can prove extremely valuable, especially during the first few years of business. A skilled bookkeeper organizes your finance and prepares reports indicating how are things going, the level of expenses and returns, revenue and operational costs. Having the big picture in hand can make the difference between further development and bankruptcy.
5. Relieve yourself from Tiresome Tasks  Finance handling is hardly fascinating. Most businessmen would describe it as tiresome and tedious – and such feelings often lead to gross mistakes and inadvertences.
6. Timely Payments It is next to impossible to keep everything in order, tend to your business management properly, travel, work out and implement your strategy and always make your payments on time. Something will definitely slip your attention. A professional bookkeeper will make sure all payments are made on time.
7. Accurate Tax Filings If there is one thing startups do not need is getting audited or being haunted by tax authorities because of due quarterly and annual tax filings. Estimated tax payments, corporate tax payments, all sorts of filings, etc. are not easy tasks for the inexperienced it mistakes can get you in big trouble.
8. Ensure Sufficient Cash Flow Your heavy schedule can easily make you oversee outstanding payments from several clients – and, in some cases, this can make it hard to keep the cash flow at workable levels. A bookkeeper can ensure that you have enough steam to keep the engine going.
9. Eliminate the Possibility of a Conflicts of Interest In case your business is managed by more than one founders, problems may occur regarding how money are spent and how should be accessed. Such conflicts of interest can have a severe impact on your business. A skilled bookkeeper acts as your money’s guardian, forming the required approval procedures that will avert excessive or even ill-motivated withdrawals.
10. Cut on Financial Obligations Most startup businessmen strive to reduce expenses, but bookkeeping is not a sector to play with. In fact, while doing everything yourself may sound cost-effective, it is both counter-productive and puts you at risk of spending much more than needed, due to errors, inadequate knowledge, overdue payments, and taxes and delayed accounts receivable.

Conclusion

Anyway one sees it, a professional bookkeeper is absolutely essential for a business aspiring to grow, especially for startups. It is cost-effective, it guarantees proper financial management and minimal tax problems and lays the foundation for future development.

Are you in need of experienced bookkeeping or accounting services? Contact us and see how easier we can make things for you.