Running a small business nowadays has never been more challenging. With the impacts of the coronavirus pandemic still directly affecting millions in Australia, most owners are focused on finding ways to keep their business afloat.
One key that will help a startup get through uncertain times is staying on top of its numbers. Accurate bookkeeping helps entrepreneurs keep a close track of their revenue and expenses. It also gives them a sound basis for financial analysis and reporting (not to mention being compliant with the law).
However, if you’re a startup founder, making sure that you don’t fall behind in tracking receipts and invoices could be a tall order. This is especially true if you already go about your day running in different directions – taking care of the business’s sales, marketing, and product development. Although it’s critical for any business, there is no denying that bookkeeping is a monotonous, time-consuming task. In this case, outsourcing your bookkeeping process makes much sense.
Typically, the tasks of an outsourced bookkeeper include reconciling bank accounts, handling accounts receivable/accounts payable, and processing payroll. With a bookkeeper in your team, you have the assurance that your financials are up to date and accurate.
More than checking your numbers and making sure they add up, bookkeepers can do more for your small business.
Thanks to cloud-based bookkeeping tools, bookkeepers can offer more for their clients than taking care of data-entry tasks and producing standard reports. Today, bookkeepers are more involved in providing strategic analysis and advice to business owners.
1. Know Your Numbers
If numbers are not your strong suit, then understanding your finances can be a bit confusing. Having a professional bookkeeper take care of your records and accounts will give you better insights into your business’s performance. You can rely on your bookkeeper to help you identify where your cash is going, how much you’re spending, and what profit you should expect to make.
2. Cash Flow Monitoring
Another crucial aspect of running a business is keeping on top of cash flow, and having an extra pair of eyes watching it is a huge advantage. A bookkeeper can help you check whether you have enough cash to keep the business running or not. You can also use the information from your updated records to make intelligent business decisions.
3. Control Expenses
Keeping a close eye on your cash flow means tracking every single expense, and a bookkeeper can help you do that. Analysing your business spending enables you to identify which ones make sense and brought profit to your company and which ones are no longer prove fruitful. Knowing these things will help you budget and invest better.
4. Sound Business Advice
An outsourced bookkeeper in your team means having an expert that has experience working with various startups from multiple industries. This means they know what makes a business tick and what holds it back. Since they understand the story in your books, your bookkeeper could be your trusted advisor when it comes to running your startup.
5. Focus on Operations
Having a professional bookkeeper by your side relieves yourself from the burden of doing this tedious task. You can now focus on doing what you are good at and channel all your efforts into growing your business.
Our services at Cloud CFO go beyond compliance and transactional work. We help you plan for the future, achieve your goals and make a difference.
If you feel like doing your books is too overwhelming, or you think you could use the expertise of a numbers person for your small business, reach out to us.