Starting a new business can be an exciting, and yet daunting adventure. If you are in Vancouver, you are well aware of how many start-up businesses there actually are, which can mean competition to you.
You may have the industry knowledge to create a successful startup, but while you are focusing on getting your name out there and building your business, who is keeping your bookkeeping and financials organized?
Even though you may be trying to save money with your start-up business, and even if this means doing everything yourself, you should really think twice about that. Sometimes a second set of eyes, especially from someone that can keep an eye on your finances for you, may be worth the expense.
Below, we are going to share with you 10 great reasons why you should hire a bookkeeper right as you are getting your start-up going, in order make your business even more successful than you imagined.
1. Reduce your costs
You may be asking how spending money and hiring a bookkeeper could possibly reduce your costs.
After all, they cost money to hire.
A professional bookkeeper can not only avoid the mistakes a new business owner may make, but their education allows them to complete your start-up business bookwork, in a timely and efficient manner, saving you money down the road. It could possibly take twice as much time, if not longer.
When you think about how much time it would take you to do your own bookwork, and how much you charge yourself out at, it doesn’t take long for you to see how hiring your bookkeeping out will save you money.
The opportunity cost of hiring a bookkeeper is beneficial for you because you can get more work done, and have your bookkeeping done with far fewer mistakes, more than likely.
A bookkeeper can also help you choose the right accounting software, allowing your business to stay on top of invoicing your customers. As well, they may be able to set up reminders making sure that you make your payments on time.
Finally, they can provide insight as to where it is best for you to spend money as you are starting up your new business.
2. Improve your finances
A bookkeeper is a huge asset to your start-up business. Not only can they complete the day-to-day transactions for your business, but they will also keep you informed as to how your business is doing.
Especially when starting up a new business, it is important to remember that even one simple mistake can ruin your finances and having you closing up shop before you really get started.
A bookkeeper can provide you with suggestions as to where you can save money, as well as where you may be wasting your money. They can also let you know how you can invest money so that you have maximum returns.
By staying on top of your finances, your bookkeeper can allow you to maintain or Improve cash flow.
3. Save you time
As we mentioned above, unless you are a bookkeeper yourself, keeping track of your finances may not be your forte- or even something you enjoy doing.
By hiring a bookkeeper, they can free up your time so that you can do what you do best. That is, focus on, and build your business.
You should be spending time growing your business rather than bookkeeping. You should be focusing on your business strategy, marketing and your social media feeds, or even meeting with potential customers. Bookkeeping is a task that is easily delegated to a bookkeeper.
4. Simplify future growth
Now that you are able to spend time focusing on growing your business, you need to make sure this growth is possible and that your business is scalable.
By having a bookkeeper assist you by put the proper systems in place as well as by choosing the best accounting software for your start-up, everything will ready and in place for that growth to happen, minimizing growing pains.
Let’s give an example with this point…
Assume that you have a growing tech business in the booming metropolis of Vancouver. Tech is a sector in the city that is constantly growing and evolving.
Having a bookkeeper that is knowledgeable about accounting practices and local tech industries in Vancouver and British Columbia can really help you plan and execute growth strategies for the future.
5. Know where your money is at
By hiring a bookkeeper, you will not only know that your bills are paid on time, but you will be informed of where your money is, as well as your cash flow.
Not only is important that your bills are paid on time so that your credit remains good with your suppliers, but your start-up business doesn’t need the extra expense of interest charges.
A bookkeeper cannot only set up reminders for you so that your bills are paid on time, but they can help manage your business’s cash flow to allow this to happen on time. They can manage your day-to-day transactions which includes not only the money you owe, but the money owed to you.
A bookkeeper can help you to stay on top of outstanding payments coming in. If collecting money from customers isn’t easy for you, having a third party asking for payments allows not only keeps your cash flow up, but it can preserve relationships when it comes to money.
6. Provide prospective
Chances are your bookkeeper is familiar with the industry you are starting your new business up in. Not only can the provide valuable insight as to which software programs will help your business run smoothly, but they can then use the software to keep you informed and on-top of your business.
They can also provide you with financial statements that can help you plan for the near future or forecast for the long range. As a business owner, you want accurate and current revenues and expenses so that you can make the best decisions possible.
7. Provide the clear picture
By hiring a professional bookkeeper at the beginning of your start-up, they can set your books up correctly, right from the get-go.
This means that you will be able to look at your income statement and balance sheet, knowing they are accurate and allowing you to see exactly where your business is at.
This will provide you with the insight into your business, growth and where your money is going.
Like we talk about in our ‘Accounting Equation’ article, knowing where debits and credits go, how accounts change as you grow, and where to expense certain accounts can get confusing—especially if you’ve made a small mistake along the way.
So, a bookkeeper who works with you from the start can provide a clearer picture of your finances, and help support your day-to-day operations and growth.
8. Expertise
You may be an expert in the industry that you are setting up your new business in, but unless it is bookkeeping, you may not be an expert with your money.
By hiring a professional bookkeeper, you are trusting your money to an expert in their field. You will want to find a bookkeeper that is familiar with the type of start-up you have, or the industry that you are getting into.
For example, the construction industry is different than a manufacturing company that specializes in widgets, which are both different from a retail company that specializes in jewelry.
You will not only want a bookkeeper’s experience, but any lessons learned, and tips that they can pass along.
9. Taxes and business filings
Many people find tax season daunting even with their own personal taxes. Taking on a whole new set of tax rules for a small business can be too much and even hard to understand.
Not only do tax rules depend on the type of business you have, but also your startup structure. Have you set up your new business as a sole proprietor or are you incorporated? This will change how your taxes are filed.
A bookkeeper can also let you know what the required filings are for your new business, whether you have quarterly or yearly obligations. They can also help you to plan for and budget for future tax seasons.
A bookkeeper will also be able to let you know what other forms you should be filing with the government, if any. As well, they can help you understand not only the rules and regulations at the provincial level, but also at the federal level.
Finally, by having a professional bookkeeper, they will also not only ensure that your payroll is done correctly, and on-time, but that remittances are correct and sent to the government on time.
10. Work-life balance
Even though you are just starting your new business, it is important to remember to keep a work-life balance so that you don’t burn out before you even get going.
Delegate tasks that can be done by others, especially the bookkeeping. You need to focus on what you are good at and why you started your business, but then have time away so that you remember why you are starting your own business in the first place.
How to find the right bookkeeper
As we discussed in our blog, ‘Choosing to hire a freelance bookkeeper vs a bookkeeping firm’, we know this is a big decision for you and your business.
Your startup is important to you, so it is equally important to make sure you hire the right bookkeeper, and one that has experience in the industry you are entering.
As well, as we have mentioned in a few blogs, there is a vast number of software programs available to you and the list keeps growing. Once you’ve found a bookkeeper that has experience in your industry, let them help you choose the software that best suits your needs.
Need help from an expert?
Do you have other questions about how to set up bookkeeping for your start-up? Let one of our experts at Valley Business Centre help. For over 30 years, Valley Business Centre has been providing comprehensive bookkeeping, payroll and tax services to our clients in Whistler, Squamish, the Sea to Sky Corridor and metro Vancouver B.C. areas. Valley Business Centre provides reliable and effective services to all clients.
Disclaimer
This article is written for informational purposes only. It is current at the date of posting and changes to laws and regulation may result in the information becoming outdated. It is not intended to provide legal, tax, or financial advice. It is recommended that readers get advice from a tax professional before making any final decisions.
