You’ve been doing your own books since you opened your business. And you’ve been doing a stand-up job, if you do say so yourself. But this strategy can’t last forever. You’re probably starting to realise that you don’t have the time required to look after your bookkeeping by yourself as your business grows. Not only do you want to be ready for tax season, but you want your books to be in the best shape possible to help with cashflow management and strategic planning.
The bottom line is your startup needs bookkeeping help once it gets off the ground. If you’re not ready to hire someone full-time, you have two main options. You can hire someone in-house on a part-time basis or use an outsourced bookkeeping service. An outsourced professional gives you full-time access to financial help without having to pay a full-time salary.
5 Reasons to Use an Outsourced Bookkeeping Service
1. Outsourced bookkeeping helps you optimise your resources
Keeping a general ledger, learning to manage payroll, and preparing financial reports are all time-consuming. These tasks will eventually require a tremendous amount of precious resources (and the people doing them are usually handling other essential business tasks as well). Once you have more than five employees, experience accelerated growth, and/or decide to add extra products, staff, or services—it often makes sense to enlist some bookkeeping expertise.
An outsourced bookkeeping service can help free up time in your organisation. And more time means more focus on activities that can help you grow, such as marketing, business development, and other essential growth-related activities.
2. Outsourcing your books makes scaling more realistic
As you grow, deciding to outsource bookkeeping and accounting can help you take on new financial challenges or accounting practices. If you need to hire more full-time staff, for instance, having more bookkeeping help on call means you won’t miss a payroll period. You can also take on additional reports regarding your financial health. These reports, in turn, help you identify areas of potential growth and scale upward at the most advantageous rate. An outsourced expert can also implement double-entry bookkeeping or more complex reporting styles that are required for large companies.
3. Outsourcing your bookkeeping puts you in touch with experts
You know your vision for your business, you know your product or service, and you can recite your elevator pitch on demand. What you may not know is how to implement best practices for bookkeeping in your industry. Many startups are filling a niche category in the market, making your finances all the more unique. A qualified outsourced bookkeeping service does the vetting for you, so you don’t have to worry about enlisting the wrong person.
An outsourced bookkeeping service can connect you with a financial expert who knows the best way to scale up in your industry, and which government reports you need to lodge at the end of the year. They can create a bookkeeping system that meets all your needs.
4. Outside help with accounting helps to keep you tax compliant
Small businesses and large businesses have differing tax reporting requirements, depending on their annual income and structure. And it can be difficult to get it right. Some taxes are administered by the Australian Taxation Office or New Zealand’s Department of Inland Revenue, while others depend on the state where you operate. An outsourced bookkeeping expert will best know what reports you are required to lodge and when the deadlines are.
5. Outsourced bookkeeping services get you ready for investors
Before an outside investor takes a chance on becoming a stakeholder, they will want to see detailed financial information. Everything from your current debts to your cash flow can help investors make an informed decision. Outsourced bookkeepers ensure your books are up to par and can take care of the reporting and insights needed to be investor ready.
Many startups fail within the first five years of operation. If you want to make it, accurate bookkeeping is an essential undertaking. An outsourced bookkeeping service helps you connect with an industry expert, scale responsibly, remain tax compliant, and more. At Visory, we handle accounting needs for businesses that are growing from a small business to a more thriving enterprise. You will have full access to statements and reports around the clock. You can even choose a dedicated bookkeeper who will become a trusted member of your team. In short, Visory is your secret weapon to business growth.