The startup phase of any business often means tight budgets and cutting back on spending where possible. One place you shouldn’t skimp is hiring an accountant or bookkeeper. It may seem counterintuitive, but spending money on an accountant in the early stages can help you gain a better understanding of your finances and let you concentrate on growing your business. Accountants and bookkeepers serve a number of roles for small business owners that help grow businesses.
Let your accountant be the financial voice for your growing business. The financial aspects of running a business are often challenging for entrepreneurs, yet your revenue projections, market analysis, and various financial reports are crucial to growing your business. Instead of muddling through all of the laws, accounting principles, tax codes, and financial issues, let an expert handle those parts of your business. This can prevent financial mistakes early on, which sets you on a solid foundation for growth. Accountants not only have their own expertise, they have access to other experts in the financial field and powerful technology related to accounting. Even if you do understand the basics of business finance, having an expert second opinion is a good idea to ensure your calculations are on track.
The mundane business tasks can bog you down and drain your enthusiasm for being a business owner. They suck your time and take you away from your real passion, which is the focus of your business. Without the need to figure out the accounting aspect of running your business, you have the freedom to focus your efforts on building the business itself. You’re an expert in your particular field. Spend more time using that expertise to solidify your products and services or to continue expanding the options you offer. With solid and accurate information from your accountant, you can make informed decisions about those business aspects that can help your business grow.
A startup commands a lot of your time and attention. By taking some tasks off of your plate and letting a professional handle them, you free up time in your schedule. Learning accounting principles takes a significant amount of time if you have no background in the field. A professional accountant or bookkeeper can complete the work much faster than you could on your own. With the time you save, you can invest more of yourself in your business or have a better work/life balance with more time to spend at home. That work/life balance keeps you grounded and reduces burnout, which keeps you motivated to grow your business.
You can handle your own bookkeeping, but do you know what the numbers are really telling you? Are you running the right kind of reports and analysis for data-driven decisions? Accountants give you a variety of ways to analyze your current situation and predict future performance. Having this data generated by an financial expert can help you make the best decisions for your business going forward. Your accountant can also help you assess financial risks of certain decisions, such as hiring a new employee or expanding your business. It’s tempting to skip professional services when you’re in the startup phase, but hiring an accountant or bookkeeper is a financially sound decision for any startup. You get financial expertise and data to drive your decisions, while freeing up more of your time to focus on your area of expertise: your business.