As per various studies, 45% of the various start-up businesses close down with in the first 5 years of their starting. What is it that is wrong which causes such a huge number of businesses to stop their operations completely with the first five years?
In a survey conducted, it has been found out that it is the thought process that separates the start-ups from well-established enterprises.
Numbers play a pivotal role in business. You need to keep strict track of your financials in order to ensure that your business runs in auto-pilot mode. This also lets the business owners make financial decisions wisely and in turn scaling of a business can be done with the utmost ease.
There are various tasks like accounts, employee grievances, etc that are all important for your business but don’t add any net worth to your business. Apart from this, these tasks are time-consuming also. However, ignoring these tasks can be fatal for your business.
This is where most of the start-ups do the mistake. They take accounts and other pieces of stuff more seriously and ignore the most important thing i.e. up-scaling their business and doing thorough of what their competitors are doing.
Big business owners take the easy way out here. Rather than wasting time on things that are not adding any value to the output, they outsource these tasks to specialist service providers. They hire accounting and bookkeeping services providers for managing accounts on their behalf and focus on upscaling their business.
However, this is easier said than done. You need to choose the best service provider as it is something related to your business and gives you the freedom to take financial decisions.
In this article, I will reveal to you why I find these service providers so intriguing and why you ought to put some effort here to ensure that you are hiring the best.
Beginning with the essential meaning of bookkeeping and accounting. Bookkeeping is the way toward following costs and salary and accounting is the way toward tracking monetary exchanges and getting ready explanations like asset reports and pay articulations.
Maintaining a business is not as straightforward as it looks. There are various things that you have to remember to abstain from bringing in any loss which you have never thought of. Here are the points that you need to take into account while analyzing a service provider.
- Payroll and employment taxes
- Sales and purchases
- Tax planning
- Auditing
- Expenses
- Bank statements
- Profit and loss statements
- Cash flow analysis
Once you have analyzed your Business Accounting Services Provider from the above-mentioned points and you are 100% sure that the service provider will be able to handle the kinds of stuff then take no time to finalize that service provider.
There was a debate as to whether hiring an in-house asset is a better option or not, to which most of the analysts were of the opinion that hiring an in-house employee will be very costly for a new start-up and also there is another expense also. You will have to invest in software and also time to make them understand what exactly you need in your reporting.
On an ending note, here are some additional points that you need to you can scrutinize your service provider to hire the best.
- The volume of the financial task undertaken by the service provider
- Frequency of reporting
- Financial Knowledge
- Reference and Previous work experience
- Hands-on experience with tools and software
- Fluent in Communication
I hope this write up will help you in upscaling your business and share this will be others to help also!!!