When you first start a business, there are going to be many things to take care of. Are you making a product? In that case, you’ll have to buy raw materials, set up a production facility, transport your product to various outlets, create a marketing plan and work with a sales team.
Your final aim is to make money but unfortunately, you might not have that much time or energy left to work on your accounting or bookkeeping. Plus, accounting may not be everyone’s cup of tea. Not everyone’s very good with numbers, even if they’re good at the other aspects of starting a business. So it can definitely be very helpful to hire a financial team when you just start a business.
The most basic function of your financial team is going to be bookkeeping. This means keeping track of money coming in and money going out. In order to make sure your team performs this function well, you’re going to have to give them all the information they need. So it’s important to keep track of all your transactions.
Your gross income minus your expenses equals your profits. So if you want to know how much your fledgling business is making in the first few months, or if you just want to be sure you’re breaking even, it’s important to get good bookkeeping services.
Saving Money on Salaries
It’s traditional to have a bookkeeper on your staff in most companies. If it’s a large company, there might even be an entire accounting department. However, when you’re just starting a business, do you really need a full-time bookkeeper or accountant?
You might only have a handful of employees and your transactions might be quite minimal. Having a full-time bookkeeper is just going to be a drain on your finances. Instead, it makes more sense to outsource this function.
You might think that it’s easier to work with someone who is physically present. However, once you take the trouble of explaining what you need to your financial team and working with them to make sure things go according to plan, you’ll find that they’re as efficient, if not more so, than full-time bookkeepers.
Good Financial Advice
Most people think that having a financial team simply means getting good bookkeeping services and getting your taxes done. However, a financial team can give you a lot more than that. You can involve them in every part of running a business.
If you’re thinking of starting a new venture, your financial team can help you figure out if it will be successful, as long as you give them all the information. If you’re thinking about making changes to your product, hiring new employees, starting a marketing campaign or selling your product online, these are all decisions that your financial team can help you to make. Doesn’t it make sense to go in financially prepared when you’re trying something new?
An Extra Pair of Eyes
Many people think that when you outsource functions, the team that you outsource them to is only going to do the minimum amount of work and leave you in the lurch as far as everything else is concerned. This isn’t true. Your financial team is going to be working closely with you to make sure that your finances are in order.
So if your team sees that something isn’t working, they’re going to tell you about it. If they feel that certain receipts are missing, that certain clients are getting into the habit of not paying up or that you could be saving money in other ways which you haven’t yet implemented, they will let you know. They’re going to be involved in the running of your business because they also have a stake in how things turn out.
Contact us for more information about working with a financial team when you start a business.