When starting a business, you want to take advantage of every opportunity to be successful. Did you know outsourcing your accounting can have numerous benefits for young startups? You should focus on developing your ideas, products, services and employees—not the books. Unfortunately, many startups fail because they aren’t able to keep up with the day-to-day tasks of running a business.
If you outsource your accounting, not only do you get started on the right path from day one, it’s one more challenge you don’t need to worry about.
Here are 7 major benefits of outsourcing your startup’s accounting:
1. You know everything is set up right
If you begin the startup by doing your own accounting and later decide to outsource it, you may have an information bottleneck or backlog that makes it more difficult or expensive to migrate your data. By contrast, if you begin by outsourcing your accounting to a professional firm, you can rest easy with the knowledge that your business financials will be set up correctly from the beginning using the best accounting software.
2. You won’t waste time trying to learn and create processes
Whether you try doing the accounting yourself or hire a finance team, you’ll still need to make important accounting decisions for the business. What kind of accounting software should you use? Should it be integrated with your other solutions? How do you ensure you’re complying with complex accounting standards? Remember that your time is both valuable and limited. Time you spend on your own finances will amount to time you don’t spend on business development and strategy.
3. You start out with a scalable solution that can grow with your business
Outsourced accounting is very flexible and scalable, which is something every startup appreciates. You can create a solution that works during your startup phase and then continue to expand services as your business grows, even if you need an outsourced CFO.
4. You avoid hiring and supporting an in-house finance team
Hiring more employees is expensive and time-consuming. If you decide to hire your own financial team, there will be lots of decisions to make: how many people should you hire to form the team? What sort of qualifications do you need to look for (and pay for)? And of course there’s the time it takes to train and manage each person. By outsourcing your accounting, you avoid all of these costs, and you don’t need to worry about a whole new set of problems if an employee leaves.
5. You gain better financial insight
In a study by CBInsights, “ran out of cash” and “pricing/cost issues” are top reasons that startups fail. Financial health is at the heart of sustainable success for every organization. By outsourcing your accounting, you can rely on professionals to provide you with valuable insight to make the best decisions.
6. You don’t have to stress about audits
You have plenty of things to work on without needing to worry about passing an audit. An outsourced accounting firm can ensure that your books are set up correctly, and will also provide you with direct support in case of an audit.
7. You instantly gain a team of experienced professionals
The professionals at a high-quality outsourced accounting firm like GreerWalker aren’t just data crunchers – they have years of experience working with companies and industries similar to yours. When you hire an outsourced accounting firm, you gain access to a wealth of knowledge and helpful perspectives that can accelerate your success and return on investment.
How do you choose the right outsourced accounting partner?
Outsourced accounting is a deeply customizable service, and different firms offer varying specialties and options. Check out our article for more information about the different levels of outsourced accounting service, or contact us with any questions. We love helping startups grow.