Five Signs Your Startup Needs Accounting Help
1. You’re Experiencing Rapid Growth
Congratulations, your business is succeeding! Now it’s time to get serious and start planning and forecasting your finances so you can continue scaling your business in an affordable way. By hiring an accountant, they can take a deep dive into your finances and offer ideas and advice on how best to do this.
Additionally, you need to be certain all your accounts and reporting are in order. The larger your business is, the more scrutiny your finances will face in terms of audits and complying with regulations. Enlisting the help of a financial expert will ensure that you don’t become overwhelmed handling your financial growth.
2. You Can’t Find the Time to Perform Basic Bookkeeping and Accounting Tasks
Once you start slipping on the essential financial tasks, you can quickly find yourself on the road to disaster. It is essential that you perform certain bookkeeping tasks daily, weekly, and monthly. The implications of not doing them can lead to extra taxes, penalties, audit failures, and more. If you don’t have time to do your finances, you certainly don’t want the extra hassle of dealing with the implications.
If you find you’re experiencing any of the following, it’s time to call the experts in:
- Failing to update and maintain financial records
- Failing to perform a reconciliation at the end of each month
- Not managing cash flow efficiently and reducing costs where necessary
- Failing to maintain a chart of accounts properly
3. You Don’t “Get” Taxes
Taxes are a conundrum to most people and that’s completely normal. You’re a business owner, not a tax expert, so you’re not expected to know how to navigate this area of finance. However, it is essential that you pay the right amount of taxes when it’s time .
Before you get to the tax deadline, you need to have everything in order. If you can’t do this yourself, then you definitely need to get an accountant on board.
You can’t avoid taxes, so this is one area you cannot brush under the rug and hope it goes away. Getting proper help will ensure you’re paying what’s due; also, the accountant will work in your favor to find any tax breaks that are available to you and try to maximize on your deductions. Ultimately, with the help of an expert, you could actually end up paying less tax overall, saving you money while avoiding expensive penalties.
4. Your Expenses Are Too High
As your business grows, so will your expenses. Of course, you don’t want to reduce expenses if it will be a detriment to your business, but you do need to manage your cash flow.
An accountant can look at the big picture and determine where you can safely minimize overhead expenses and still maintain a quality level of business, while utilizing every possible deduction. They will also help you forecast and plan for future expenses, so you’re not left scrambling to pay them.
5. You Need to Focus on Increasing Business
You likely set up your business to sell a product or a service that you’re passionate about. Unless that passion is accounting (in which case you don’t need to be reading this article), it’s likely that you want to focus solely on what your business is about.
Having your attention pulled in different directions takes the focus away from building your business and increasing revenue. By hiring an accountant, you will have one less thing to worry about and be able to get back to what you do best. They work with you in real time, allowing them to identify any opportunities to help accelerate the future success of the business.
Outsourcing Accounting is the Ideal Solution
The main sticking point for startups is that they simply don’t have the office space nor the available cash to hire an in-house accountant full-time. This is what prevents them from getting that resource they so desperately need.
Thankfully, there are other options. Outsourcing your accounting requirements is a great solution for startups. You get all the expertise and assistance necessary from a highly qualified professional that works remotely. Even better is that you pick a level of service that’s right for your business. Whether it’s one day a week, part-time or full-time, you only pay for what you need.
Your remote financial professional will use cloud-based software that you can access at any time to gain a view of your business’s financial records and reports. This also ensures that all your data is stored securely and organized.
Accounting service providers such as Finvisor will match you with a suitable financial expert to enable you to take your business to the next level. Whether it’s accounting, bookkeeping, consulting, or payroll and HR resources, Finvisor has a team of professionals available at your fingertips.
There’s no need to let your finances slip into the abyss. Contact Finvisor and find out how they can help you get on top of things and free up that all-important time to focus on your passion!
To learn more about what we do, or to request a quote, contact us at hello@finvisor.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*
- Last Modified
- November 8, 2022
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