Financial mismanagement is often the most common reason why even the most promising start-ups fail to take off and eventually de-rail. In fact, to a research study that is conducted to know the reasons for the failure of start-ups, guess what came on the top – cash flow problems.
The bigger their idea, the heavier is the competition and the start-up has to pull the levers possible to sustain and become a smooth and successful business for which efficient bookkeeping and accounting plays a vital role. Without an expert accounting wing, it is common for start-ups to run into accounting problems, which our accountants at Outsourced Bookkeeping regularly solve with our bookkeeping and accounting services. Here are a few common accounting challenges that are often faced by start-up businesses:
Keeping Track of Financial Data:
Accounts receivable, payroll, expenses, payables, debts and more, businesses are bombarded with volumes of financial data which is key for better accounting. From optimizing working capital and cash flow, meeting tax obligations to evaluating the financial status, attracting new investors and taking necessary steps for better financial performance, business records and track financial information with the aid of the right accounting tools and software. The first step we take at our Outsourced Bookkeeping is to make sure that the financial information is perfectly recorded and tracked with our booking and accounting services.
Though the number of employees in a start-up is on the lower side, the start-up does face payroll headaches in the form of incorrect tax filings, under due and overdue payments, outdated and incompatible payroll software, leave tracking and other compliance problems. It is important to establish solid and effective payroll procedures right from the onset to minimize the problems and improve accounting. As a start-up, if you are finding it difficult to manage your payroll responsibilities, you can easily solve the problem by outsourcing payroll to third-party service providers.
Unforeseen Expenses: The most common accounting problems, which is due to the consolidated impact of all other accounting problems are unforeseen expenses. Running a startup is one of the most challenging tasks you have to deal with a variety of problems on the fly, but when these problems are financial, they can completely derail all your plans and projections. This could be due to the failure of keeping track of all receipts, invoices or analyse account payables, unorganized financial data and more, but mostly it is a common symptom of lack of professional help and DIY accounting.
Tax Preparation: Taxes are a headache for every business which is why they need help from tax experts for tax preparation. But the most important benefit most start-up business miss is the ability to benefit from tax deductions. Given start-ups are offered a variety of tax dedications, without expert help start-up businesses often leave money on the table by not claiming the dedications. For example, if your start-up is a home-based business, you can instantly deduct the business depreciation cost which improves your investment. However, tax preparation also needs prompt bookkeeping and accounting functions that are performed accurately and efficiently by experts. So obviously everything points back to efficient bookkeeping and accounting services which most start-ups do not focus on.
More often than not, the founders come from a non-financial background and it’s common for the majority of them to run into accounting problems which take more time, effort and sometimes even make them lose focus, as they have to wear so many hats. That said, hiring expert dedicated accountants can cost you a lot and may not practical. Fortunately, you can plug this gap and lay a strong financial foundation for your business with outsourced accounting and bookkeeping services.
Outsourced bookkeeping and accounting services for Startups:
If you are a founder and your start-up business is not adhering to solid accounting principles and practices could soon make the whole job tougher for you. Solid accounting strategy and execution is how you foster your business growth and out-last your competition.
If you own a start-up and are looking for accounting and bookkeeping services for a startup business, Outsourced Bookkeeping is the best back-office accounting firm for the role. We have worked with hundreds and small, medium business and large business over the years by providing full-service accounting services, bookkeeping services, accounts payable services, tax preparation services & QuickBooks Services for more than a decade now. Our experienced accountants equipped with the latest accounting software and tools can provide solid accounting strategy and execution that can help you make the most out of your resources while aiding you in the smooth and successful running of your business. So need outsourced bookkeeping and accounting services for startups? You can contact us here: https://www.outsourcedbookeeping.com/