3 Reasons Why Start Up Founders Should Outsource their Bookkeeping

1
3 Reasons Why Start Up Founders Should Outsource
their Bookkeeping
2

• When most people think about starting a new
  business, one of the first things that come to
  mind is how theyre going to manage their
  finances. The reality is that many start-ups
  dont have any experience in this area and will
  need to find someone who can help them out. In
  this blog post, well discuss why should you
  outsource your bookkeeping. How much can you
  expect it to cost? And 3 benefits of outsourcing
  your bookkeeping needs for start-up founders.

3

• Why should start-ups consider outsourcing
  bookkeeping?
• There are probably more valuable things you can
  be doing in the start-up phase of your business
  than learning the difference between a debit and
  a credit. Generally, a founder juggling the
  responsibility of sales, product, cashflow, human
  resources, compliance and more many of these
  things can drain the enthusiasm they had for
  their business. By out-sourcing key roles to
  professionals, you will have more time for
  growing your business and generating new ideas
  that can help it grow even further..

4

• If you want to scale your business, you will want
  to draw on the skills and experience of an
  experienced bookkeeper or accountant who has been
  on this journey with a business before

5

• Financial record keeping and reporting are
  critical in creating a solid foundation for your
  companys future success. Your financial reports
  (and forecasts) will form an integral part of
  conversations with any shareholders. For many
  start-ups and early-stage companies, the
  accounting and finance department may initially
  consist of the founder with the assistance of a
  good bookkeeper like iKeep and a tool like Xero.

6

• This is a great place to start, but it may not be
  enough for your growing company. When youre in
  the early stages and still working with limited
  resources, you need all hands-on deck to keep
  things running smoothly and efficiently. That
  means focusing more time on building
  relationships within your community and securing
  new customers rather than spending hours behind
  the desk.

7

• How much does it cost?
• The costs a start-up incurs for bookkeeping will
  depend upon many variables. Company size and
  lifecycle, number of monthly transactions, number
  of employees and how payroll is processed, number
  of expense accounts, credit cards, invoices to
  send out, bills to pay, number of balances to
  reconcile, etc. In addition to these basic
  bookkeeping activities, your costs will be
  impacted by how your accounting systems,
  policies, and procedures, and reporting needs are
  set up and administered. The typical cost of
  outsourcing your accounting and bookkeeping can
  range from 400 to 5,000 per month for small
  businesses.

8

• An outsourced bookkeeper provides several
  benefits
• One of the biggest benefits of outsourcing your
  bookkeeping needs is that youll be able to get
  it done at a lower cost than hiring someone
  internally. Instead of having to hire someone,
  who will likely work part-time and require health
  insurance, training, etc., you can outsource. One
  of the biggest perks of getting an outsourced
  bookkeeper to perform bookkeeping tasks is that
  you dont need to worry about surprise costs.
  benefits and the equipment that a regular
  employee is entitled to. All you must do is hire
  a virtual bookkeeper.

9

• Free up more of your time for important tasks
  One of the allures of owning a business is that
  you get to choose your schedule. But when it
  comes time to do bookkeeping, its easy for this
  task to take up valuable hours in your day. By
  outsourcing these tasks, youll be freeing up
  more time for other important activities,
  allowing you to focus on growing your company.

10

• Monitor your KPIs and stay on top of your
  Cashflow Whatever your type of business, its
  essential to know your companys financial
  standing. You need three major reports to
  determine this cash flow statement, income
  statement, and cash disbursement schedule. With
  the help of a professional bookkeeper, monitoring
  your businesss KPIs becomes so much easier.
  Also, a good bookkeeper will check, update, and
  follow up on payments. They can also track
  receipts, note accounts payables and receivables,
  balance your accounts, and give you an accurate
  picture of your cash flow.

11

• For many start-ups and early-part companies, the
  accounting department may initially consist of
  the founder perhaps with assistance from a good
  bookkeeper like iKeep and a tool like Xero. A
  good, outsourced bookkeeper is an excellent
  choice for start-ups and early-part companies.
  They can help you keep track of accounts payables
  and receivables, balance your accounts, and give
  you a clear picture on cash flow. With the help
  of a professional bookkeeper monitoring your
  businesss key performance indicators (KPIs)
  becomes much easier.
• All the best with your next venture!