Do you know 90% of startups fail? And out of which, 16% of them fail due to poor finance and accounting management.
For startups, it is very important to manage their funds properly because they already have limited financial resources. Now, you might have a stellar startup plan, but if you don’t manage your money properly, you can’t survive in the competitive work environment for very long.
On the top, startups are competing with well-established corporate brands. Thus, they need precise and expert level accounting services under their small budget.
That means startup needs – high calibre, affordable, and complete accounting services. In short, a startup needs accounting outsourcing services that can scale up their business. They need support from the accounting outsourcing company that can offer – monetary planning, payroll, business licensing, cash flow analysis, and many more services.
Reasons to Hire Accounting Outsourcing Services for Startups
Outsourcing accounting services for small business brings loads of benefits such as the expertise of multiple accountants and bookkeepers, the efficiency of the latest accounting tools, assistance to address complicated financial issues, and so much more. Moreover, the accounting outsourcing company can help startup businesses in running their operations effectively.
There is an array of reasons to hire accounting outsourcing services for startups, such as –
Reason 1. First Five Year Plan
For startups, the first five years are highly crucial. If they don’t chalk out their five-year financial plan in advance, they can’t survive in the long run. With the right accounting services that offer more than basic data entry, you can gain control over your finances.
One good accounting and bookkeeping service firm offers – counselling as well as insight on various financial aspects. From managing financial statements to forecasting and monitoring your financial data, so much can be achieved with one competent accounting outsourcing service solution. Your outsourcing accounting partner will analyse your financial statements and provide assistance in making the correct decisions that will boost your company ahead.
Reason 2. Smooth Scale Up
Ten years ago, Airbnb was just a startup, and today, it is a million dollars travel idea. So, presently, you might be a startup, but you never know tomorrow, you’ll be a Fortune 500 company. Your fate can scale up anytime, and you should be prepared to embrace it.
When you start with the right accounting partner, you can scale up your business smoothly. Today, you just want simple bank reconciliation and payroll services, but later on, you might require complete accounting and financial services. Now, your part-time bookkeeper can’t manage the needs of the future, but an outsourcing company can.
For instance, at CapActix, we provide numerous accounting services to our clients like accounts receivable and payable, cash flow management, payroll, etc. We have given full flexibility to our clients; they can anytime hire or drop any service as per their requirements. In this way, outsourcing accounting services for small business are very helpful to scale up their operations.
Reason 3. Expert Services at Affordable Rates
Usually, startups hire part-time or inexperienced bookkeeping professionals because they don’t have an adequate budget to hire experts. Now, a less experienced bookkeeper can help up to a certain extent only. When you need some special services like tax preparation or business analysis, you can’t rely upon a part-time bookkeeper. You need someone who has vast financial and accounting knowledge and experience.
Since accounting outsourcing companies facilitate startups to hire or drop services anytime and only pay for the services that they have used, thus, with outsourced company support, getting professional services under budget is possible. Outsourcing service providers have a team of accountants, bookkeepers, and other financial professionals who can offer the best services for very less.
Reason 4. Full Dedication and Support
Your part-time bookkeeper has to handle many other clients at the same time; he cannot stay focused on your work for a long time. It can be problematic for you, especially when you want time-sensitive work.
On the contrary, when you are dealing with an outsourced accounting service provider, you can contact them anytime, and someone at the other end will always be available to help you. Outsourced companies have large teams, and they are available during their regular business hours to help you out.
Additionally, if you want to give more workload to outsourcing companies in a month, they always have the bandwidth for extra work. If you have hired an accounting outsourcing company based in a different time zone, you can get accounting services even in the middle of the night.
Reason 5. Better Preparation for Tax Season
Your in-house accountant or bookkeeper might have prepared a smooth plan to manage your day-to-day operations. But, when tax season pressure knocks at your door, you need a team of accounting professionals to help you out.
Outsourcing accounting service providers already have extensive tax experts on board, and they have sufficient bandwidth to prepare your book on time. Thus, you can use outsourcing accounting services for small businesses when the tax season rush starts.
Reason 6. Protection Against Burn Out
Burn out is a term referred to as define excessive spending rate. If you constantly spend at a burn out rate, you’ll have to shut down your business soon. It is important for startups to find out their burn out rate so that they can enhance their revenue scale. One competent accountant can only help startups in locating their burn out point.
Startup organizations can gain numerous benefits by outsourcing accounting work. They can improve turnaround time, save costs, access professionals, and so much more. Overall, it won’t be wrong to say that outsourcing can help startups to succeed and grow in many ways.
CapActix is a reputed accounting outsourcing company that can provide finance and accounting services at affordable rates. To know more about our services, contact on email – [email protected] or can call on +201-778-0509