Advantages of Outsourced Bookkeeping for Startups: 4 Reasons

Financial Management for Startups: 4 Reasons Why Outsourced Bookkeeping Service is Beneficial

When you start a new business, you do everything to minimize your costs and achieve a break-even point to recover the expenses incurred on setting up your business. That is why you might handle operations like bookkeeping yourself. It may work well for you as a startup in the short run. However, as the time grows and your responsibility to establish, sustain, and grow enhances, you may need help with the non-core operations. While hiring an in-house bookkeeper may be tempting because of the control you get over your books, it may not be viable. Like any other staff, there are significant costs associated with recruiting, maintaining, and training an in-house bookkeeper. It may not seem feasible for a startup trying to break even and enhance profits to spend such an amount that may not yield desirable results. Outsourced bookkeeping services are a perfect fit for startups when they struggle to manage time, money, and their books accurately and efficiently.

Startups usually do not have many financial transactions in a specific period. Therefore, a company can choose one of the following: 

• Hire a part-time bookkeeper and fix their working hours each month. Hiring a full-time bookkeeper would be a waste of money to handle the meagre data. It can be a freelancer or a permanent employee.
• Go for outsourced bookkeeping services providers with a team of qualified experts with vast experience.

Businesses can choose anyone depending upon their needs. Both parties provide similar bookkeeping, reconciliation, and accounts management services. The fundamental difference between the two is that while the former will meet the company's requirements, it would be an individual with a limited skill set. However, bookkeeping and accounting outsourcing companies offer a pool of expert professionals familiar with the changes in the industry and apply the latest advancements to enhance the efficiency of the company's processes. 

Other reasons for a startup to choose outsourced bookkeeping services to include: 

Scalability and flexibility:

A startup will not always remain at one stage. It will grow and evolve with time. Therefore, the bookkeeping department will also need to change. With outsourced bookkeeping services, companies can cater to their rising needs easily. Outsourcing companies facilitate scalability and adapt to the changes to efficiently meet their clients' needs. Since they have a team of highly qualified experts in diverse areas, they can handle these needs accurately. Also, they can provide CFO and accounting services to serve the complex requirements.

Value addition: 

You get access to a pool of high-quality bookkeeping experts on a part-time basis at nominal costs. Instead of spending money on expert advice for your growing business needs, outsourced bookkeeping services lend you the expertise of the senior experts without additional charges. It adds value to your growth.

Fulltime access: 

With a part-time bookkeeper, you have a contract with fixed hours, outside of which you cannot ask for their assistance. However, with outsourced bookkeeping services, you can access the bookkeepers any time you want. You can request the help of an individual during regular business hours. Also, some companies provide 24*7 chatbots to handle your queries.

Better prepared taxes: 

Since outsourced bookkeepers have vast experience, they can prepare your files accurately for the upcoming tax season. They will organize your expenses and financial transactions in proper categories and keep the books up-to-date to eliminate any hassle while filing taxes.