The moment when your startup is on the verge of turning from merely an idea to an actual business can be very exhilarating. However, it comes with numerous things to think about or consider. One of these may be the important decision to bring an expert from outside, like a bookkeeper, to help with some of the vital operational functions when it comes to running a business.
Finances are at the core of the business and need to be managed properly if you wish to succeed. While an accountant is a professional you may not need to hire, you should at least consider employing or outsourcing a bookkeeper to help with the intricate and complex financial aspects that come with running a company. You could handle bookkeeping on your own, but with the many business aspects that require your full attention, it’s just not viable.
A bookkeeper is important, and in this read, we are going to take a closer look at why every startup should hire one.
Focus on the Core Aspects of Your Company
A startup calls for the undivided attention of the founder if it’s to become a viable venture. This means that you need to dedicate most of your time to funding, marketing, strategy, and other vital areas that require your focus more than the daily operational tasks.
Ensure Taxes Are Filed Properly
Trust us, you don’t want the tax agency coming after you or to be audited because you forgot the quarterly and annual tax filings. You will have different tax requirements depending on the kind of business structure you have settled for in your startup, including estimated tax payments, 1099s for the freelancers and contractors, corporate tax payments, etc.
Make Sure Everything Is Paid on Time
Between ensuring the business is always running, putting out the regular fires, travelling, and staying balanced, there will always be something left out among the chaos. More often than not, it’s the bills that are forgotten.
You don’t want your credit to be affected by simply forgetting or making payments late. This is why you should hire a bookkeeper. These professionals will give you the confidence that everything, including bills, will be handled on time.
Get a Different Perspective on Your Business
Entrepreneurs tend to assume they have a great idea about their startup’s condition during the development stage, but it’s always a good idea to have an outside pair of eyes on this.
A bookkeeper can put all your finances in order and create reports that showcase your performance every month, where the money is going, whether your efforts are paying off and areas that need improvement. A reputable bookkeeper will crunch the numbers and offer the bigger picture.
Avoid What You Don’t Know or Understand
Most entrepreneurs do not have backgrounds in finance or a working knowledge of accounts payable, accounts receivable, and taxes. That is why it is best to hire a professional who is actually trained and certified to handle these aspects of a business.
Mistakes in the financial aspect are less likely with a professional on board. Keep in mind that forgetting to pay the bills or making late payments may end up affecting your business credit.
Reduce the Cost of Financial Obligations
Most people tend to have the impression that they get to save money by doing everything themselves. However, this could not be further from the truth, and you actually save more by paying for bookkeeping services. That is because the chances of making mistakes are greatly reduced. There is also the reduced risk of missed payments, delayed accounts receivable, taxes and even lack of knowledge.
Hiring a bookkeeper when launching a startup could be one of the best decisions you ever made.