In the information age, the new generation is equipped with the means to create solutions that address different problems of the modern world. This sounds great on the surface, but a lot of criticism is brought into light. Just like how the younger generation of today are accused of having short attention spans, start-up businesses are criticized for generally lacking long term goals and commitment. Understandably, this is because tech start-ups are comprised of a small group of people who are passionate about putting their tech skills to use. Unfortunately, the lack of experience and long term vision causes them to neglect one important thing about businesses, and that is handling the financial aspect of it sensibly.
The good news is that hiring bookkeepers is already a big step in securing financial management of the business. Small and medium businesses can get by with a capable accountant. Here are some notable things that a bookkeeper can provide for a start-up or even a small and established business.
1. Better payroll management and preparation.
It goes without saying that
processing payroll has to be flawless, if at all possible. Without a bookkeeper to take note of tax deductions and other factors that would affect payroll preparations, there's bound to be plenty of discrepancies. Even in a start-up composed of less than ten people are to encounter issues with payroll systems. That is, if they don't have a bookkeeper with them. Averting these discrepancies also means averting unnecessary animosity and awkwardness in the office. Most people are too hesitant for their own good to discuss financial matters with their peers. And this is where bookkeepers come in.
2. Providing fresh insight for important decisions and business strategies.
Planning something innovative or shifting to bolder marketing strategies without considering financial risks is one of the biggest pitfalls of start-ups. Blind decisions like these end up with the company shutting down or being bought by an established company. Bookkeepers can provide analysis of the start-up’s financial situation and present how revenues can be affected by such decisions.
3. Cut costs.
Now how would something like spending on hiring and paying for bookkeepers are considered cutting costs? Just like with any businesses, start-ups require investments as well as hiring reliable employees. Bookkeepers can help the company avoid costly penalties from missing out on paying taxes. For a group of people who aren't well-versed with taxation, this is a big risk. In addition to this, a bookkeeper can also make it possible to not have to hire an accountant for annual tax preparations. Some of the best bookkeepers are just as qualified as the average accountant. Hiring accountants are usually on a one-off basis, or when the need arises. But their rate can put a dent on the start-up’s capital. With a bookkeeper on board, an accountant may not be required at all.
The best way to
organize your business finances is to let someone who knows the subject well do it, including the task to
process payroll. This saves a lot of time and let other members of the start-up do what they do best instead, which is to develop their ideas into something useful and profitable.
