There are plenty of sensitive operations to run and look after for any start-up in the transition to an actual business. Some of these operations require a business owner to bring in an external expert e.g. Bould Bookkeeping to assist meet some of the objectives of running the business.
Financial management is part of the important functions that have to be met for any business especially a start-up. Well, you might not need an accountant for this task, but you might consider bringing in a bookkeeper to help in the financial management of the business.
In the absence of a bookkeeper, you will have to handle the bookkeeping responsibilities such as recording income and outgoings, banking activities and preparing financial reports among other tasks by yourself. While some of these tasks may seem simplistic, handling a majority of bookkeeping duties by yourself is not realistic and may cost the business some penalties.
The best option is to hire a bookkeeper who will manage all your bookkeeping needs. The following are the 6 important reasons why you will hire a bookkeeper:
- So You Can Maintain Focus on the Core Duties of the Business
The nature of all start-ups is that they require plenty of attention from the founder for the business idea to materialise into a viable service or product merchant. The need for the success of the start-up will force the founder to dedicate time for marketing the product/service, sourcing of optimal financing schemes staffing among other impotent responsibilities.
Some of these responsibilities are important to the business than the daily operational tasks because of the critical stage of development for the start-up where the probability of failure is usually high.
- Avoid Working on Tasks You Do Not Understand or Know
Many business founders lack training in financial transactions and operations such as recording of accounts receivables, accounts payables and taxation. This is where a business owner will need to hire a professional trained and certified to deal with such aspects of business financial reporting.
Additionally, if you hire a trained and certified professional, you can expect fewer mistakes to occur. The success of the start-up is dependent on making decisions that will not cost the business money in the future. For instance, forgetting to pay a pending bill will significantly affect the business’ credibility for credit.
- Bring In a Professional With a Different Business Perspective
An open mindset and being able to project the performance of the business under varying scenarios are some of the valuable attributes required to help the business grow. It is advisable to have a different set of eyes for the business no matter how much you might assume your idea is good.
A bookkeeper will not just crunch numbers for the sake of financial reporting. A bookkeeper is trained to explain the performance of the business from month to month, explain where funds are being allocated to and if your effort to run the business using a certain strategy is paying off. A bookkeeper will use numbers to paint the “big picture” for your business.
- Ensure Bills Are Paid on Time
It is very common to forget to meet some urgent bills because the business owner has been caught out travelling or attending to other emergencies of the business. Often, some important tasks like settling important bills are left unattended.
For any start-up, you do not want to lose credibility from your financier or supplier because of forgotten or late payments. A bookkeeper will be responsible for settling of bills which brings the assurance to the business that bills will be paid on time.
- Correct Filing of Taxes
The last thing you want is to be forced into an audit or to be sued by the taxman because you failed to properly file your annual and quarterly taxes for the business.
It is normal for a business to have various tax requirements depending on the type of business structure and operations in your start-up. Some of the tax requirements may include corporate tax payments, 1099s for freelancers or contractors, estimated tax payments as well as other filings.
- Lower the Chances of Costly Errors and Lower Cost of Financial Obligations
Many people assume they will save more money if they handled all responsibilities of the business by themselves. However, from experience, the truth is that a business owner is likely to save money by hiring a professional bookkeeper.
Working with a professional bookkeeper reduces instances of human error, late debt service payments, inadequate knowledge and skills, tax payments and delayed accounts receivable.