All too often startup founders try to juggle too many tasks, and something falls through the cracks.
Unfortunately, this can lead to failure. To help alleviate this, it is good business sense for entrepreneurs to enlist some help.
One arena where many startup owners need assistance is with their finances and accounting.
Let's look at 6 reasons to outsource financial services for startups so your business is never in the red.
#1: You Don’t Know Your Numbers
Trying to make a budget? What if you don’t have the numbers you need?
If you find yourself struggling to move your company forward because you don’t have the budgeting numbers you need, it’s time to turn your finances over to an outsourcing company.
Many startups don’t have full fledged accounting departments, nor can they afford them. So, take a positive step forward and hire an outsourced firm to help you get control of your cash flow.
#2: You Need Financial Analysis and Strategic Analysis
As a startup, you most likely need a small business loan, or perhaps you’re looking for funding from angel investors or venture capitalists.
If so, they’re going to want a thorough look at your numbers. They want to see an in depth financial analysis as well as a strategic analysis report.
Like most entrepreneurs, this may not be your strong suit. If so, this is another reason to outsource financial services.
It just might mean the difference between you securing your loan or investment capital, or you having to shut your doors early.
Your outsourced financial team can provide you with all the analysis you need to keep moving forward.
#3: You Need Help Forecasting and Planning
You’ll find that most outsourced teams are experts in more than just accounting and bookkeeping. They are frequently well-versed in providing you the financial data you need to forecast and plan for the future.
Good teams also offer advice, counsel and insight. You’ll find it extremely helpful to hire an outsourced team that has experience working with startups and young companies.
#4: It’s Taking Up Your Time
Sure, you want to save money, and you’ve decided to handle your own accounting.
But, we bet it’s taking up too much of your day, and you don’t have the time to do what you’re best at – managing and growing your business.
Free up your time by hiring someone to take care of your finances.
#5: Your Reports are Slim
Management reporting is key to your success.
Not only does your management team need to know where your business stands, but so does your board, your bank, and your investors.
Count on your outsourced team to pull any report you might need.
The best part is that they’ll also explain it to you, so you don’t have to be well-versed in accounting lingo.
It’s quite frustrating trying to interpret financial data when you don’t know exactly what you’re looking at. Your outsourced team can simplify the data so it’s easily digestible.
#6: You Want to Reduce Your Risk
You’ve heard horror stories of in-house bookkeepers and accountants stealing money. It’s easy to do in a startup, especially if the owner isn’t accustomed to dealing with accounting.
By outsourcing your finances to a third-party, you reduce your risk and protect your employees and your company.
In addition, you reduce risk by letting the outsourced team handle your taxes and financial legal obligations such as local, state and federal taxes and employee withholding.
Finally, your outsourced financial services team can help you with your strategic initiatives, which will help you grow and scale your business with success.
An experienced team knows how to guide you as you grow your business. They will also help you analyze the numbers to make sure your startup is going in the right direction.
Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.