Sep 24, 2022 Author: Accounts Junction
As a startup, there are a lot of business decisions you need to make based on your financial figures. And if you are not able to track the flow of money in and out of your business, it becomes difficult to plan for the growth of the business.
Initially, you might think of doing the accounting on your own or opt for a freelance accountant owing to budget constraints. But what’s the plan? When your business grows, the scope of your accounting tasks gets wider, and you definitely need an expert to handle them. With growing competition and technological advancement, many startups are choosing outsourced accounting services for their businesses. Most of the outsourced accounting services provide cloud accounting services, so you can track your finances from anywhere.
With our accounting services and a specialist team of CPAs, CAs, and accountants, everything gets simpler. We make sure that all your accounting records and financial transactions are accurate and in accordance with accounting principles. We also provide you with monthly reports to provide you with insights into your financial position.
Why do you need an accounting service?
Professional accounting services help with effective financial management irrespective of which industry they operate in. It helps to reduce risks and ensures business growth. The accounting service provides a subjective view, helping business owners with financial insights through a thorough analysis of their financial data.
What is the cost of outsourcing accounting services?
The cost of outsourcing accounting services ranges from $500 to $4,500 per month for small businesses. However, there are several factors that determine the cost of outsourcing accounting services. There are fixed monthly rate systems, hourly rate systems, and revenue-based percent systems. Outsourcing accounting services help to save around 40%–60% of your costs. With the right outsourcing partner like us, you add skills, save money, and improve your internal control system.
Accounts Junction charges its clients for productive hours of work so we charge on an hourly rate system.
How can an outsourced accounting service help your startup?
Right accounting service from the start:
Startup business owners neglect to account and then when tax time comes, their accounting is a complete mess. If you start working with accounting services from the beginning, it helps to develop a standard system of accounting. You track your income and expenses from the first day and have accurate and updated books of accounts.
Access to information and analysis for investment capital:
Whether you are seeking a business loan or funding from an angel investor or venture capital firm, accurate and updated financial records with clear and insightful financial statements help in securing funds for your business growth.
Accounting services provide accurate books of records and well-explained financial statements that help to outperform other competitors in getting funds.
Accounting services help you determine your burn rate:
It helps in determining the burn rate. It helps to understand how much money you are spending and its duration. If your business expenses continue at the same rate, will your business be able to survive? This is extremely important if you are a tech startup or in an early stage of development with a long lead period before your business generates revenue from sales.
Accounting service helps to scale your company's needs:
Starting off with the right accounting services provides services that help you to scale your business needs. For now, you may need simple accounting tasks like reconciliation, closing books, etc.; you may also require comprehensive services in the coming days. Instead of hiring a full-time in-house bookkeeper, you can opt for an outsourced accounting service and scale its service according to your business needs.
