Imagine a situation where your start-up business is still within its transition stage in between being just an idea to being a real business. There are many different things that you need to think about and consider. One of those things might include the critical decision of when an outside expert should be brought in, like Bould Bookkeeping, to assist you with certain operational functions that are involved in operating a business.
Bookkeeping sevices will usually include a company’s financial aspects. While you may not want or need an accountant, you should consider hiring a bookkeeper at least to assist you with the financial aspects of your business. The only viable alternative is handing the bookkeeping dues on your own to understand the various aspects of your business. For most people, that is not a realistic option.
Therefore, your best option is a bookkeeper. The following are 6 reasons why you should consider hiring a bookkeeper for your business:
1. Maintains Your Focus On Your Company’s Core Needs
A founder’s attention is required by a start-up, including his or her attention on turning their idea into a viable product or service. Therefore, as the founder, your time needs to be dedicated to funding, strategy, marketing, and other important aspects that demand your focus and time over the daily operational tasks of your business.
2. Stay Away From Things You Don’t Know or Really Understand
Most founders do not have financial backgrounds or working knowledge of taxes, accounts payable, and accounts receivable. This is why it is best to hire a professional that has taken courses and been certified for handling these parts of your business.
It is less likely that mistakes will be made when a professional is hired, in addition to issues that can end up costing you more money. If you miss bills or forget to pay something important, it can significantly affect your business credit.
3. Obtain a Different Perspective on Your Business
You may assume you have a very good idea about what the state of your start-up is during its development phase. However, it is still a good idea to have an extra pair of eyes look at it.
Your bookkeeper can get your financials put in order and also run reports every month on your performance, where your funds are going, and which efforts need improvement, and which ones are paying off. The bookkeeper can crunch the numbers to provide you with a “big picture” view of your start-up.
4. Make Sure All Your Bills are Paid on Time
Between having to move your start-up forward, putting out fires that can arise at any time, travelling, and staying balanced, along the way, something almost always ends up getting left out. In most cases, it frequently ends up being unpaid bills.
You definitely don’t want your credit to be affected by forgotten or late payments. That is why a bookkeeper should be hired to ensure everything is handled on time and properly.
5. Ensure Your Taxes Are Correctly Filed
You definitely don’t want the taxman coming after you or be audited due to forgetting to file your quarterly or annual taxes. You will be subject to different tax requirements depending on the kind of business structure you chose for your start-up, including 1099s for contractors or freelancers, estimated tax payments, corporate tax payments, and other types of filings.
6. Reduce the Cost of Your Financial Obligations
You may assume that handling everything on your own will save you money. However, the reality is, hiring a professional bookkeeper can save you more money. That is because there are reduced risks of lack of knowledge, missed payments, human error, as well as delayed accounts receivable and tax obligation due dates.