If you’re a start-up founder on your way towards turning your creative idea into a viable business venture, there are a lot of things to consider: business registration, capital, product development, marketing, operating costs, and of course, talent acquisition.
Though, there are other business areas that are often neglected, such as keeping the books and managing financial records, which can lead to problems later on, especially once your start-up starts to take off.
As the adage goes, accounting is the language of business because it is crucial in oiling the gears of your start-up’s engine and keeping things running as smoothly as can be, ultimately propelling your venture to success.
For this, it’s essential to explore whether to rely on your basic financial knowledge or consider hiring an expert so you can focus more on your core business without having to worry about preparing tax documents, managing payroll, and handling finances.
Should you hire an in-house bookkeeper to help you with your finances?
Having an expert bookkeeper in your team can help your start-up exponentially scale by maximizing your venture’s finances. Check out these various reasons and ways a bookkeeper can be essential to launch and grow your business successfully:
1. Ensure that your business pays everything on time, without unnecessary delays
Between meetings with partners, looking for investors, handling daily operations, and making sure your start-up is hitting the specified targets, more often than not, other essential business aspects get overlooked along the way with such a full plate. This usually means unintentionally neglecting financial obligations, such as paying your bills on time.
As credit score is important, especially when establishing your start-up, making sure everything is handled and paid on time is crucial. While there are multiple finance tools available in today’s market, it is still good to hire a specific team member to be in charge of ensuring all financial obligations are taken care of to avoid penalties due to late, or worse, forgotten payments.
2. Monitor spending and maintain a positive cash flow
Initially, you might be thinking that you could save some money by not hiring a bookkeeper—but nothing could be farther from the truth. In reality, hiring a professional to handle your finances can be the solution to making your business more lucrative, as it is a bookkeeper’s job to make sure your start-up is not spending more than it is making.
With a financial expert on your team, you can also monitor spending patterns and see where you can potentially cut costs, clear out financial obligations on time, avoid hefty fines, and substantially reduce the risk of errors that can lead to unforeseen expenses.
Apart from that, having a bookkeeper can also help you ensure that your start-up maintains a positive cash flow, as they will handle outstanding payments from your customers. In keeping a positive cash flow, your business can potentially attract more investors, injecting more capital into your venture.
3. Ensure correct tax filings for your start-up
Filing tax can definitely be a sticky ordeal, especially for people without prior knowledge or experience handling business taxes. The last thing you want as a start-up founder is to get audited and penalized because you filled your taxes wrong, didn’t meet the requirements, or there were delays in processing them.
With a bookkeeper, you can sleep well at night knowing your business records are well-organized, making your annual filing of taxes a hassle-free endeavor rather than a stressful process of sorting through endless piles of financial reports. Bookkeepers can also protect your business during an audit as they can provide accurate details on your company’s tax documentation to avoid compliance issues.
4. Identify and implement an accounting system tailor-fitted to your needs
Streamlining processes can surely take a significant amount of weight off your shoulders as it allows you to focus on more important things rather than constantly put out fires as they come.
In knowing the ins and outs of your business venture, your bookkeeper can identify and implement the right accounting system that fits the bill to save time, money, and effort, so you don’t have to go through the motions of the trial-and-error method.
Bookkeepers ensure all your finances are in order. While there are multiple finance tools available in today’s market, it is still good to have an expert to ensure all your financial obligations are being taken care of properly and on time and that everything is done in compliance with laws and requirements.
Apart from all the mentioned perks of having a reliable bookkeeper, another benefit they bring to the table is that they allow start-up founders to make better, smarter business decisions faster.
How, you ask? Bookkeepers provide businesses with well-rounded financial reports that offer key insights. With such information at your fingertips, you can make quick decisions for your start-up that’s backed by data.