Why Your Startup Needs a Bookkeeper

Why Your Startup Needs a Bookkeeper

When a startup decides to transform a business idea into a product, there are several things that it has to consider. Some of these areas include getting expertise to run different operational functions in the business. Yet, unfortunately, most startups overlook the important of a bookkeeper. One of the major functions of a bookkeeper includes taking care of the business finances to better understand profit and loss to determine if your startup is running efficiently. At the start, you may believe that you do not need an accountant or bookkeeper for the business. However, here are a few reasons why you need a bookkeeper for your startup:

Helps deal with Finances as you deal with core Business Functions

You need to give your startup business all the attention you can at the formative stage. A bookkeeper frees up your time. You can devote the time to strategy, getting funding, marketing, and leadership while the bookkeeper takes care of the financial aspects.

Proper Money Management

Not all business owners have a background in finance. You are likely to make costly mistakes for lack of basic financial skills. Some mistakes could also bring the business down or cause you to pay thousands in penalties. A bookkeeper helps you avoid such mistakes by taking care of various parts of the finance department including accounts receivable and payable, taxes and cash flow management.

Get Relieved of Some Duties

As the founder of a business entity, every sector of the business may need your attention. You may be forced to work for long hours such that you have no time for your loved ones and yourself. Also, you risk burning out your energy which can cause health problems. A bookkeeper takes away the finance function out of your plate saving you hours of bookkeeping activities.

Get an Independent Perspective on your Business Health

When you are engrossed in the running of the business, there is a good chance that you may not realize some mistake and other issues may go unnoticed. It takes another set of eyes to see what could go wrong or help you take advantage of new opportunities.

Increase your chances of getting funding

One of the main things that the investors look at when deciding on the business to put their money in is how well the business manages its cash, good bookkeeping, and proper financial planning. A bookkeeper can help in the core financial areas which in turn may get you noticed in a financing round. He or she can maintain your books of accounts using the best practices, help in financial planning and aid in cash management.

Get your bills and creditors paid in time

When running the business alone, there is a chance you may forget some bills and other due payments which can lead to fines and mistrust. Late payment attracts penalties and affects your credit score. A  bookkeeper ensures that you honor the invoices on time and pay the business bills as soon as they are due.