Bookkeeping for Startups

outsourced bookkeeping for startups

A third party will handle all of your company’s time-consuming accounting procedures for a reduced fee. Outsourcing companies are responsible for advertising, vetting, and hiring a reliable accounting team you can depend on. With outsourced accounting services, your startup can save the time and money it would otherwise spend looking for skilled and qualified in-house accountants.

It’s one thing to have all the financial data you need to run your business. But the real benefit is to have someone to explain exactly what the financial statements mean, and help you to make the decisions that will steer your company toward growth. Most very-early stage startups do not need a third party, nor a full-time, bookkeeper.

Why Use Outsourced Accounting For Your Startup?

However, there could be instances in which an in-house professional makes sense. If your books and financial documents aren’t clear and accurate, it’s difficult to make smart decisions. Doing financials right the first time saves time and makes sure you’re able to produce financials quickly when you’re ready to raise venture capital. One of the most important steps to setting up bookkeeping bookkeeping for startups for your startup is to establish an automated payroll system that interfaces with your accounting system. Our account management team is staffed by CPAs and accountants who have, on average, 11 years of experience. We strongly encourage lightly funded startups to do their bookkeeping themselves – it’s not that hard, at least when you are small and have very few transactions.

outsourced bookkeeping for startups

When it comes to income taxes, you can still take advantage of certain tax credits even when your business has no taxable income. Finding opportunities to defer tax credits can help save you money down the line. Your startup accountant can help you choose an ERP that integrates with the software that you already use, or replaces it altogether. While your accountant may not be able to integrate your software for you, they can likely recommend an ERP consultant who can. In addition to supporting accounting and planning functions, most ERPs come ready to integrate with other software and apps that generate data about your business. Whether you have a CRM solution like HubSpot, Salesforce, etc. or a WMS solution like Softeon, you can likely feed data from your software and apps into your ERP.

inDinero: Best for established startups

In addition to helping you go through your options, your accountant will also help to keep track of all of these benefits with your accounting or ERP software. Calculating and itemizing all the assets and liabilities can be a tricky endeavor. While cash accounting (calculating the money you have on hand and the money you owe) is relatively straightforward, it isn’t the method of accounting preferred by investors and banks. Startups are usually in breakout industries or innovating in existing industries with new technology. Because of this, startups end up having different needs that a typical business might have.

As you go from coding a prototype to hiring people, gaining traction in the market to pitching investors, what you need to know—and the services and experts you should rely on—will change. However, outsourced accountants have the right software and are always up-to-date with the latest technologies. This saves time, minimizes human errors, gets you real-time reports, and helps catch potential issues and resolve them before escalating. Outsourced financial experts have access to automated accounting software, which reduces the risk of internal fraud. Reconciliation is an important part of bookkeeping, making sure that different records balance and that funds leaving your accounts match the actual money spent. Accurate books are essential to companies that raise venture capital, since company executives have to deliver regular, accurate financial reports to investors.

Five Reasons To Outsource Back-Office Accounting Functions

With accurate and streamlined record keeping, business owners can see where their money is going. Hiring a bookkeeper that specializes in startups is crucial because you’ll end up saving money in the long run. Our bookkeeping services are designed to keep clients happy by putting more money in the bank!

outsourced bookkeeping for startups

At Flatworld Solutions, we take pride in our team comprising CFA, controllers, PFA, CPA, CFF, ABV, and other non-traditional accountants, certified in a myriad of accounting functions. With 19 years of experience, we have served not only C-corporations, but also S-corps, LLC, and other types of businesses in domestic and international markets. is an all-around solid pick for small to midsize businesses that might want additional payroll and tax help down the road.

Conclusion- Does It Make Sense to Outsource Accounting for a Startup

Unlike a small business, startups rarely focus marketing efforts on a specific geographic area and will not be bound to a single location. Thus, many startups are finding that maintaining a headquarters is overhead they don’t need, opening them up to employees from anywhere. The services rendered may require part-time or full-time work or short-term or long-term deals. As they grow, the requirements change and will then necessitate additional functions. This means hiring new people or spending time and money on training staff.

In both cases, investors expect to make more later than the amount they initially put in. A great accountant can help chart a path for your business’s financial future. Get in touch with SD Mayer today to discuss your startup’s unique accounting needs.

VP of Finance / Controller / Director

Because of this added complexity, it’s important for startups to equip themselves with the right tools out of the gate–such as software and access to professionals. She started as a tax preparer for San Francisco State University, assisting tax filers with intake forms, and helping filers maximize refunds and minimize payments. She worked for Asian, Inc. for over a year, handling AP, AR and payroll, prepared 1099’s, recorded payments and prepared for deposits, posted journal entries and ran reports and financial statements. For nearly 6 years, Meixiao worked for LightHouse for the Blind and Visually Impaired, first as an AP/AR Coordinator and then as a General Ledger Accountant. Rob joined our team in late-2022 as an Outsourced Accounting Manager.

  • With 19 years of experience, we have served not only C-corporations, but also S-corps, LLC, and other types of businesses in domestic and international markets.
  • Isabel is studying accounting and business management from De Anza College.
  • Are you a startup entrepreneur just learning which services you will need to run your business more smoothly?
  • Vinnie fisher is an entrepreneur, author, husband, and father of 4.