Why Start-ups Should Consider Outsourced Accounting and Bookkeeping
If you’re a start-up business, perhaps outsourcing an area of your business hasn’t quite crossed your mind in plotting your strategies for the most cost-effective operations. And if it hasn’t, this is most likely because of the common misconception business owners still hold until now, which is that outsourcing is reserved for larger or more established companies who can afford such services to become more efficient. But like we just said, these days, this is simply a misconception.
Because of its high demand, outsourcing is no longer reserved for companies with larger financial capacities. Today, more and more small and start-up businesses are readily able to afford outsourcing. It is why even SMEs can now leverage with their larger competitors in terms of talent/worker acquisition, technological tools, efficiency, and huge cost reductions!
What’s another crucial reason you should be considering outsourcing as a start-up business? Well, let’s just start with the fact that up to 90% of start-ups fail due to poor finance and accounting management! This isn’t to scare you, but you most likely already knew this anyway, even before you started your business or new operations. Thus, outsourcing provides a great way to leverage your productivity with tough competitors without costing you a fortune.
So, let’s just cut to the chase.
While there are many areas of your business that you can choose to outsource such as marketing, IT, human resources, etc., a very critical aspect of your survival lies in proper management and a clear view of your finances. When your company’s finances are concise and updated, you’re able to save on costs along the way and make better decisions for your business.
Below are other outstanding benefits outsourced accounting & bookkeeping services can provide start-ups:
If you’re a start-up, chances are you may not require full-time help with your bookkeeping or accounting. By outsourcing, you only pay for the work you need done.
Advice from Experts:
The most experienced and skilled accountants will usually look to work in larger, more established companies for higher salary and better career opportunities, which may leave start-ups with less experienced or skilled talent who would willingly settle for smaller pay.
But when you outsource, you gain access to your provider’s large pool of high-level financial talent. Through an outsource provider you share your accountant with other clients, thereby allowing you to get expert advice at a fraction of the cost.
Accurate, Updated and Credible Financial Statements for Investors:
As a startup looking to raise your capital, you’ll definitely need experienced hands to ensure that your books are clean, accurate and constantly updated if you want to make the best financial decisions, as well as entice investors to your company.
Another advantage of outsourced accounting services is that you’ll always be prepared for tax season, since your service provider will make sure you are consistently compliant with regulations (which by the way, tend to change quite often).
These are just a few of the major advantages of outsourcing your bookkeeping or accounting services. There are also others such as gaining more sense of security in your finances, more focus in your core goals, better business decisions, significant cost savings along the way, and greater competitive edge that can assure your business its survival and future success.
To learn more about how outsourced bookkeeping and accounting can serve your business, get in touch with us at JCSN. For years, we’ve been dedicated to providing Accounting and Bookkeeping Services for businesses in San Diego, California for small to medium sized businesses. We are the trusted accountants of Asian and American business communities.
Get to know your options as a start-up or small business. Talk to us today for a FREE consultation.