7 Reasons Why Your Startup Needs a Bookkeeper

Posted by on Aug 16, 2017 in Blog

7 Reasons Why Your Startup Needs a Bookkeeper

Running a business or creating a startup is difficult – there is no easy way to say it. However, starting a business, especially when you are on a tight budget, is even harder. As a creative or entrepreneur, you are trying to do the jobs of many employees. You are marketer, customer service adviser, sales manager, bookkeeper, administrator and more. And when you are not doing those things, you are trying to be innovative to stand out from your competitors and make a real mark in the industry. There is only so much time in a day, right?

Handing over your financials to a bookkeeper will provide many advantages to you and your business. Here are seven great reasons why you need to hire a bookkeeper for your startup.

More perspective

You are being torn in numerous directions – seemingly all at once. Often it can be easier to hire a bookkeeper to focus on your financials. They are professionals and understand what needs to be done to develop and grow your business. They can offer a second perspective on how things are going just by assessing the numbers. A business without a profit is just a hobby after all.

Assistance at tax time

As entrepreneurs struggle to get their paperwork in order to submit at tax time, many turn to bookkeepers for their help. Bookkeepers know exactly what needs to be done and, best of all, how to do it. They are experts in matters concerning the Australian Taxation Office (ATO) and understand how to prepare the paperwork so it is tidy and professional, should the ATO have any questions.

Maintain your focus on the business

As a startup, you don’t want to take a whole week off from the business just to get your financial paperwork in order. Why not just leave it to the professionals? By doing so, you can continue to source customers and manage the business, allowing your bookkeeper to focus on the financials. Micromanaging every aspect can be very stressful, therefore it makes sense to outsource at least one task to maintain your effectiveness and focus on the core business.

Save you money

While a bookkeeper can help you get your end of financial year paperwork in order and advise on expenses, they can also save you money in the long-term. As many bookkeepers work from their own space, you don’t have to furnish an office for them to use. The ability to hire a quality bookkeeper at an affordable price is a huge benefit to startups.

Pay your invoices on time

Your bookkeeper can help you ensure that you pay your bills on time. It is very easy to misread your invoices or forget about them altogether if your mind is focused elsewhere. Late payments can have a huge effect on your business, not to mention your reputation and credibility. A bookkeeper will help you manage your books and ensure the bills are paid in a timely fashion.

No requirement to learn a new skill

Bookkeeping is a skill and to do it right, you will need to at least have a basic knowledge of the financials. If the thought of sitting through lessons on accounts payable, accounts receivable, budgets and taxes do not interest you, then you can leave it to a professional. They have already undertaken the training and will ensure that your bookkeeping is error-free and up to date each month.

Leave some time for yourself

It is likely that you are already burning the midnight oil to get everything done. Hand over the bookkeeping to someone who has the time and the knowledge to do it. That way you will have more time for you. A tired and anxious entrepreneur cannot function at their best. Remember to take time off for your personal needs to relax and catch-up with friends, old and new.