In the early stages of your business, it often makes financial sense for you to handle your own bookkeeping duties in order to reduce expenses. However, as your startup expands, you’ll unavoidably need to hire a bookkeeping professional due to the time and knowledge required to finish your bookkeeping correctly each month.
At this point, you probably want to know which bookkeeping solution is best for startups.
Most small business owners and startups in their early stages don’t need a full-time bookkeeper because they handle too few transactions or administrative duties. Compared to an individual bookkeeper, professional bookkeepers are in a better position to review and troubleshoot a wider range of situations. This crucial distinction results in five significant advantages of outsourcing bookkeeping for startups.
Avail bookkeeping services that can scale up to your business
As your startup expands and changes, your bookkeeping solution must also grow and adapt. The majority of outsourced bookkeeping teams can readily adapt to your changing bookkeeping needs because they have access to experts on a variety of topics. Initially, your startup might only require assistance with standard bookkeeping duties and accounting software management. Many finance companies that offer outsourced bookkeeping also have the know-how to provide advanced accounting and CFO services, as well as experience across various business verticals, which comes in handy when your finances get more complicated and you need extra help.
Get more expertise for your money
Finding a qualified part-time bookkeeper in your industry can be difficult, and the allure of hiring a less experienced bookkeeper on an hourly basis to save money might be strong.
Many companies that have been losing out on opportunities due to their part-time bookkeeper’s unfamiliarity with the specific requirements of their industry have now shifted to outsourcing bookkeeping.
Get full time access to bookkeeping
A part-time bookkeeper’s contract specifies the amount of time they will spend on your account; they probably have other clients outside of these hours. When time-sensitive bookkeeping tasks (like replying to customer inquiries or providing current financial reports during a fundraising process) arise, it could be an issue if your bookkeeper is unavailable. You might have to wait several days to hear back. You will be able to get in touch with the team at any time during regular business hours when you work with an outsourced bookkeeping solution. Some solutions even provide longer hours so you can always get in touch with someone to get your questions answered.
You are better prepared for tax season
Your bookkeeper will set up the framework for a seamless tax preparation and filing experience whether you work with an in-house team or a part-time employee. Here, having a group of bookkeepers can be helpful. They will have the time to prepare your books in advance because they most likely have a lot of experience preparing business taxes. Your online bookkeeping staff will make sure that all of your transactions and expenses are properly coded, recorded, arranged, and accessible for the tax accountant to work with. The accountant won’t have to waste time sorting errors or hunting for missing financial data when you outsource bookkeeping. You can be positive that you won’t throw away any money.