Bookkeeping Advice for Start-Up Businesses

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Bookkeeping Advice for Start-Up Businesses

For start-up businesses, bookkeeping is an important part of the job. Here's how a good bookkeeper can help you keep your business alive and successful.

How Hiring a Bookkeeper Helps Keep Your Start-Up Business Going

Financial troubles are often the death of start-up businesses. It takes careful planning to stay in the black when you’re starting up and establishing your customer base. If you don’t know how to manage your bookkeeping, you’ll find yourself shutting down within a few years of opening. Dragon Financial, bookkeeping company in Portland, Oregon has the following advice on why a bookkeeper is a good idea.

1. DIY Isn’t the Best Approach

A lot of start-up businesses are looking for ways to save money. It’s not a bad idea, but it can lead to mistakes. One way you might try to save money is by doing your own bookkeeping. While it might seem a good way to save money, unless you’re good at accounting it might cost you more in the long run. Bookkeeping takes a lot of time. You end up either doing it while on the job, or afterwards at home. One ends up taking focus away from your work, the other adds more hours and takes focus away from your home life. Both take time away from things that are important to your life.

2. Don’t Pay For Expensive Bookkeeping Software

Another way a bookkeeper can help save you money is in software expenses. If you do it yourself, you’ll have to pay for your own bookkeeping software suite. Many suits give you the choice of an expensive up-front license, or a subscription service that’s cheaper in the moment, but adds up over time. If you hire a bookkeeper, you can usually skip this entirely. Since they work with multiple clients, any bookkeeper you hire will have their own software if they’re worth your time. That’s one less expense to worry about for you.

3. They Can Help You Plan Ahead

virtual bookkeepers can do it remotely

If you want to be good in chess, you have to plan several moves ahead. In business, it’s much the same. Getting ahead has many advantages. You’ll know your financial situation with more accuracy, you can get your taxes prepared before the deadline, and it reduces a lot of stress. A bookkeeper can help you do all that. With regular quarterly meetings to go over your finances, they can keep all your records organized. You’ll always know where you stand and how much room you have to move. This will keep you from ending up short on cash when you need it.

Get Started On The Right Foot

While saving money is a must in the early stages, sometimes you have to spend money to make money. While it might seem like a good idea to manage your own bookkeeping, doing it yourself can add more work and stress to your life. This will hurt your ability to focus on managing your business properly. In the long run, hiring a bookkeeper can save you more time and money. If you want to keep your finances straight, there’s no better solution.