3 Reasons Why Start Up Founders Should Outsource their Bookkeeping - PowerPoint PPT Presentation

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3 Reasons Why Start Up Founders Should Outsource their Bookkeeping

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Title: 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 they're going to manage their
    finances. The reality is that many start-ups
    don't have any experience in this area and will
    need to find someone who can help them out. In
    this blog post, we'll 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.

4
  • 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.

5
  • 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.

6
  • 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. 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

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.

8
  • 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.

9
  • An outsourced bookkeeper provides several
    benefits
  • One of the biggest benefits of outsourcing your
    bookkeeping needs is that you'll 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.

10
  • 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, it's easy for this
    task to take up valuable hours in your day. By
    outsourcing these tasks, you'll be freeing up
    more time for other important activities,
    allowing you to focus on growing your company.

11
  • 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.

12
  • 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.

13
  • All the best with your next venture!
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