Imagine a scenario where your start-up is in the transition stage from being an idea to an actual business. You will have to consider and think about many different things. One of these things may just include the very important decision of when to bring in an expert from outside, such as Bould Bookkeeping, to help with some of the operational functions involved in running a business.
Those functions almost definitely include the financial aspect of the business. While an accountant is not a professional that you might not need or want, you should at least consider hiring a bookkeeper to help with the financial side of things. The only other viable option is to handle bookkeeping duties yourself to better understand all aspects of your business. However, that’s simply not realistic.
The bookkeeper option is thus your best bet and here are 6 good reasons why you need to consider hiring one:
1. Maintain Your Focus on the Core Needs of the Business
A start-up requires its founder’s attention, which includes his/her attention to growing the idea into a viable service or product. It therefore means that you need to dedicate your time as the founder to marketing, strategy, funding, and other important areas that demand your focus over the business’s daily operational tasks.
2. Stay Away from What You Don’t Really Understand or Know
The vast majority of founders don’t necessarily have backgrounds in finance or even have a working knowledge of accounts receivable, accounts payable, and taxes. That’s why it is better to hire a professional that actually took courses and was certified in such areas to handle those aspects of the business.
If you hire a professional, mistakes are less likely, as well as issues that may cost you even more money. Keep in mind that forgetting to pay something important or missing bills will affect your business credit significantly.
3. Get a Different Perspective on the Business
You might assume that you have an excellent idea about the state of your start-up during the development phase, but it can be a good idea to have a different set of eyes on this.
The bookkeeper you hire can put your financials in order and run reports that show you your performance each month, where the funds are going, and how your efforts are either paying off or require improvement. He/she will crunch the numbers and give you that “big picture.”
4. Ensure that Everything is Paid on Time
Between keeping the start-up moving forward, travelling, putting out the fires that pop up daily and staying balanced, something almost always gets left out along the way. In most instances it often ends up being the bills that need to be paid.
The last thing you want is for your credit to be affected by forgotten or late payments, which is why you should hire a bookkeeper to give you the confidence that everything will be handled on time.
5. Ensure that Taxes are Filed Correctly
You don’t want to be audited or have the taxman come after you since you forgot the annual or quarterly tax filings. You will have various tax requirements depending on the type of business structure you have opted for in your start-up, including corporate tax payments, estimated tax payments, 1099s for freelancers or contractors, as well as other filings.
6. Lower the Cost of Financial Obligations
You might assume that you can save money by handling everything yourself. However, the truth is that you can actually save more money by hiring a professional bookkeeper. That’s because there’s a reduced risk for human error, missed payments, lack of knowledge, and tax obligation due dates as well as delayed accounts receivable.