Benefit Of outsource Accounting Service: Concept & Benefits for Start up
Author
CA. Sweta Makwana
www.caswetamakwana.com
Maintaining accurate and timely accounting records and financials is crucial to the success of every company, especially the startups. But, as a startup entrepreneur juggling with an ample amount of responsibilities, the question arises…Will you have sufficient time to look after the accounting concerns for your startup or would you rather concentrate on the crux of your business objectives by outsourcing these accounting activities by taking outsourced accounting services?
List of Outsourced Accounting services provided by outsourced firms for startups:
- Book keeping services
- Preparation of periodic financial reports eg. P & L Statement, Balance Sheet, Cash flow statement etc
- Managing Receivables and Payables account
- Payroll services
- Invoice processing and bill payments
- Budget estimates
- Ratio analysis
In this article, we will discuss the benefits a startup can attain by outsourcing its accounting services.
- A Better alternative than in-house accountants
Outsourced accounting services will always prove to be a better alternative than deploying in-house accountants for startups. Firstly, you need not apprehend about their pay benefits, payroll taxes, arranging work equipment for them, looking out for office space in order to occupy them, incurring expenses on imparting them requisite and timely training. On the other hand, outsourcing will certainly relieve you from all these hassles and let you fix your attention to the pivotal competencies of your business by saving you ample time and money.
- Intensify your expertise and attention to the core business
For startups, concentrating on their core business will always be the need of the hour. Outsourcing startup accounting services to a credible team of outsourced accountants will save you a great deal of time which is undoubtedly the need for a startup entrepreneur. Above all, you can intensify your skills and proficiency more on the aspects of operational efficiency and the strategic objectives of your startup. Similarly, you can augment your business revenue and growth rather than being piled up with the startups book-keeping and accounting concerns.
- Outsourced Accountants and Book-keepers will certainly keep in pace with the startups accounting needs
A low investment startup can seemingly unfold into an organization worth billions. So, why not depute an outsourced accounting firm from the inception itself, instead of having to manage the switch over from deputing a single in-house accountant, then moving forward to an in-house accounts department and then to an outsourced accounting firm as the business expands. Subsequently, skilled outsourced accounting firms will definitely keep in pace with the entity’s needs.
- High level of expertise and accuracy
Outsourced accounting firms cater to the accounting needs ranging from accounting for startups to MNC’s. They have a team of qualified accountants well versed with the accounting knowledge and updated with the latest regulations. However, if the accounting services are managed by skilled professionals, there are relatively lower chances of error and an increase in the level of accuracy in maintaining accounting records of startups.
- Avoid last-minute rush
Quarter-end is usually a mad rush governed by strict deadlines. Outsourced accounting services for startups will relieve the burden of updating the accounting records at the last moment. As the accounting responsibility is shifted, the Outsourced startup accounting firm will ensure that the accounting and financial records of their clients (startups) are updated till date and are meticulously maintained. Most importantly, this will ensure that taxation and statutory compliances are complied with timely and regularly.
- Outsourced accounting services will seek you investments
Proper financial records giving accurate insights of the startup will invite capital investments from investors and will make it easy for the startups to apply for business loans.
- The Effective and organized Business system from the inception itself
Outsourcing the startups accounting services from the inception itself will help in maintaining an organized and effective business system throughout the life-span of the business. Firms may also provide shared CFO services for startups which will add tremendous value to your business. Up-to-date accounting and financial records will assist the entrepreneurs to assess the financial viability of the startups.As a result, reports, budgets, forecasts, statements generated can help owners make informed and timely decisions and accelerate business growth. So, I believe you must have received the answer to the question asked in the beginning. It is of utmost importance to focus on the critical areas of your business while a skilled accounting professional keeps your finances in order.
In case of any further query, you can write us at sweta@caswetamakwana.com for further clarification. The author can be reached on 9819244185.
