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4 Reasons Why Start-ups Need Professional Bookkeepers

Rahul Maingi

By admin, January 19, 2018

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Starting a business from scratch isn’t easy. It takes planning, hard work, execution, and teamwork to transform an idea into a profitable business. There are several important functions that contribute to the growth and smooth functioning of a business. That includes bookkeeping. Many entrepreneurs think that bookkeeping does not play an important role when the business is in its initial phase. But, that is not true.

Professional bookkeeping is necessary for every business, irrespective of its age. You can do without hiring a full-time accountant but not a bookkeeper. Still wondering how? Keep reading this post to find out the 4 reasons why start-ups need professional bookkeepers.

1) Accurate Financial Information

The secret to a successful business is quick and logical decision making on important matters on the basis of information available. Whether it is about investing in a new machine or hiring more manpower, accurate financial data is necessary to make these decisions. When you hire a professional bookkeeper, he/she ensures that all transactions are recorded regularly and all books are maintained. As a result, you don’t need to spend extra resources on finding out whether you have finances to fund this expansion or not. With error-free financial data management, you get a clear idea of the financial status of your business.

2) Timely Payments

From credit card bills to payroll, a business needs to settle many payments at the end of each month. Since you’re running a start-up, you don’t have designated departments and one person handles different sectors. Amidst this multitasking, missing payments become common. Missed or late payments and forgotten invoices can affect your business’s cash flow and credit score. If you hire a bookkeeper, the responsibility of managing cash flow is handled by him/her. He/she records transactions regularly and hence; a bookkeeper is the best person to alert you when you miss a payment.

3) Coordination with the Accountant

One of the biggest struggles faced by start-ups is dealing with the jargon and technical terms of the accountants. For example, if the accountant inquires why your gross profit percentage is less than what it was in the last quarter, how will you answer? This is when your bookkeeper comes to your rescue. Your bookkeeper knows your daily business transactions and can easily coordinate with the accountant by explaining the technicalities of the issue. He/she understands why the payments were late and how it affected the cash flow. Therefore, he/she will have a reasonable answer to the questions asked by the accountant.

4) Smooth Business Operation

Hiring a professional bookkeeper might seem to be a costly affair at the initial stage, but it plays a vital role in ensuring smooth business operation in the long run. Since the bookkeeper takes the load of finances from your shoulders, you can concentrate on other business aspects and make strategies to take the company forward. Entrepreneurs are not good at maintaining books so they should be left for doing what they are good at, business. You’re running a start-up and your complete attention should be on making money and letting the bookkeeper handle management of money. That said, when you have a professional onboard, you can safely develop your business.

Save time and money, ensure accurate financial data, maintain proper books of accounts, make timely payments and concentrate on business growth by simply doing one thing, hiring a professional bookkeeper. If your start-up doesn’t have the budget to hire a full-time professional, then outsourcing your bookkeeping services will be the best bet for you.

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