Accurate bookkeeping is essential for start-up business owners who wish to realise growth. Bookkeeping enables you to monitor your budget and analyse your business expenditure and revenue for proper financial objections. It also helps with payroll and allows you to enjoy tax deductions.
One challenge that most start-up business owners face is choosing between an in-house bookkeeper and a professional service. An in-house bookkeeper is an employee of the business while a bookkeeping service is contracted on an as-needed basis. Below is a comparison that will help you determine the best option for your start-up.
Cost of Bookkeeping Services
Every business owner needs to cut down expenditure in the initial stages of the enterprise. Keeping costs low increases cashflow and boosts productivity. One of the ways to cut costs is by reducing the number of employees in the business. Hiring a full-time bookkeeper means you have to pay salaries, employee benefits, insurance and other expenses associated with workers.
These can quickly add up and put a strain on your finances. On the other hand, using a bookkeeping service allows you to outsource the service when you need it. You won't pay salaries or employee benefits, and this can save you a considerable chunk of money. Thus, if you're looking to make savings, working with an external service is an excellent choice.
Quality Assurance
Most start-ups don't have the capabilities to hire highly experienced professionals such as bookkeepers and accountants. Thus, you may opt to get one with little or no experience. While this saves you money in the long run, it can erode the quality of services you receive. You may even be forced to invest in training for your employee.
However, when you contract a bookkeeping service, you pay for quality and experience. Outsourcing comes with quality assurance. You sign a service agreement which outlines what the professional will deliver. You are assured of accuracy in bookkeeping, and when there's an error, you can take it up with the bookkeeper.
Unbiased and Professional Opinion
When you entrust bookkeeping services to an employee or one of the partners in the business, you risk getting biased opinions. Bookkeeping involves analysing records, conducting financial comparisons and making financial and cash-flow projections from the information obtained. Employees may provide biased or inaccurate information due to their allegiance to your firm.
On the other hand, an external bookkeeper has no obligations towards the business. If statements and records show the company is struggling, they will be honest with you. They offer unbiased opinions on the financial state of the firm. Most also advise on what you can do to improve cash flow and prevent business failure.
As you can see, outsourcing bookkeeping services can cut costs and guarantee you quality services and unbiased opinions. Hire a bookkeeping service today to steer your start-up towards growth and stability.
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