Are you facing challenges regarding your finances and accounting? 

Don’t worry! We are here for you- we provide top-class accounting services for startups. We help you to clean your financial mess so that you can focus on your core business tasks.

If you are an entrepreneur, then you are probably in the learning stage, like what business activities you need to outsource to run your business more smoothly.

Outsourcing finance and accounting is an essential and trendy activity these days. Today we are gonna talk about the nuts and bolts of outsourced accounting for startups.

What is accounting for Startup?

Accounting for Startup is how your business records, organizes and tracks cash inflows and outflows that can be used for analyzing how your business performs. 

‍ Accounting briefly describes your Startup’s financial transactions in one financial year. Also, it determines your Startup’s fund and performance status, which gives an exact picture of your Startup’s success and financial health.

Here is a list of some accounting startup activities you have to perform as an entrepreneur:

  • Perform Bookkeeping- activities like collecting transactions, completing data entry, monitoring financial records, filing income tax and much more.
  • Generate invoices and send them to clients.
  • Check clients’ payments to check whether they are paying on time or not.
  • File income tax
  • Check if your available cash can meet future expenses.

Common Accounting Challenges Startup Entrepreneurs Face

accountant work done

Here are a few common accounting challenges that are often faced by startups and small businesses:

1. Keeping Track of Financial Data

The most crucial step of startup accounting is ensuring that your company’s financial statement is recorded perfectly. Account receipts, expenses etc., have so much financial data, which is essential for better accounting.

2. Payroll Management

The startups face payroll problems in the form of incorrect tax filings, under-due and overdue payments, outdated and antagonistic payroll software, leave tracking and other adherence issues. Forming a solid and effective payroll process from the beginning is essential to minimize problems and improve accounting.

As a business owner, if you find it challenging to manage your payroll responsibilities, you can quickly solve the problem by outsourcing payroll to a reputed outsourcing service provider.

3. Tax Preparation

Doing taxes by yourself causes so much stress, so outsourcing your accounting will take this burden off your shoulders. Also, outsourcing helps startups to benefit from tax deductions. Outsourcing companies offer startup businesses various tax deductions without expert help. Startups often give money to companies by not claiming dedication.

Usually, the CEOs come from a non-financial background, and it is common for most of them to run into accounting problems that take more time and effort and sometimes even make them lose focus as they try to fill many roles at once.

Hiring a dedicated accountant can cost you a lot and may not be practical. Luckily, you can fill this gap and lay a solid financial base for your business with accounting outsourcing services.

Benefits of Outsourcing Accounting for Startups

accounting work

The accounting sector for startups and small businesses is increasingly congested. Despite economic fluctuations affecting major players, the number of accounting firms is projected to surpass thousands in the forthcoming decade.

A significant proportion of these entities are concentrated in Western Europe and American locales, leading to intense rivalry, elevated operational expenditures, and a scarcity of skilled accountants.

For experienced financial leaders at companies in the US or Europe, these challenges are all too familiar. Recruiting local accountants is costly and narrows your pool of top financial talent.

In a competitive landscape, outsourcing accounting functions becomes a transformative strategy. Establishing financial teams in countries such as India is not only cost-effective but also opens doors to a vast and proficient talent reserve.

But how can you effectively utilise outsourced accounting teams to advantage your startup or small business?

So How outsourcing accounting is beneficial for small business?

Small businesses can benefit from outsourcing accounting in many ways. Outsourcing accounting allows small business to work with experienced accountants who can handle their financial needs efficiently and accurately.

Outsourcing accounting also frees up their time and resources, so they can concentrate on their main goals and objectives. Moreover, outsourcing accounting helps them comply with the relevant tax laws and regulations, and produce high-quality financial reports.

We dive deeper into some of the most common accounting outsourcing benefits for startups and small businesses below.

1. Access to finance and accounting expertise

By outsourcing accounting services for startups, you will get access to knowledgeable accountants according to your company’s requirements.

Outsourcing companies hire highly professional accountants who know how to handle your business accounts with their best practices. The accounting needs of different organizations are different, so you can’t fulfill them alone. This is where outsourcing comes into play; you can hire an accountant according to your business needs.

2. Cost Effective

Another obvious benefit of accounting outsourcing services is cost-effectiveness. The cost of hiring an accountant in developed countries like the US is expensive as compared to India and Philippines. You don’t have to provide health insurance, pension benefits, electronic devices etc., to your accountant.

3. Avoid turnover and time-off issues

You will avoid turnover and vacation problems when you outsource your accounting and finances. Each team member equally contributes to the project’s success. If your accountant is on leave, it will be your company’s responsibility to assign you some other accountant to complete your task.

If you hire an in-house accountant, then you need to train your accountant, which takes a lot of effort and time. Outsourcing accounting and finance shift those responsibilities away from you so you can focus on generating more revenue.

4. Achieve Time Savings for the business

Entrepreneurs have a lot to do, including sales, marketing and operations. The third-party service provider will save a lot of your time taking care of your finances. The expert outsourced accountant doesn’t need any guidance; they will handle your accounts with outstanding professionalism. The outsourcing company saves you time by giving you helpful information to grow your business.

5. Gain Flexibility To Meet Business Requirements

Another significant benefit of outsourcing accounting for startups is it provides flexibility within the company. Make sure to keep your employees busy, so they cannot waste their time, but too much work can cause trouble because they don’t have enough time to focus on the new strategies. It can be frustrating, and you have to wait. Outsourcing accounting will increase the number of employees on your project, and you will not be bound by time or cost and will deliver what you want at any time.

6. Ability to Scale Up or Down

Another benefit of outsourcing accounting is the ability to scale up or down. Businesses that have rapidly grown are often suffering difficulty with backend operations. This will slow down growth and revenue. Businesses often lay off, and you are trying to become more efficient with your money. But you don’t want skilled employees to leave the company because employees are still difficult and expensive to replace.

Outsourcing accounting and finance allows you to scale up to handle a more significant workload when the business hits its peak.

If running the business becomes more challenging, you can scale back and not worry about having as many employees or capacity. This allows companies to scale up and down quickly.

An outsourced accounting team allows your firm to observe local, state and federal accounting regulations. The rules and regulations for filing tax returns change constantly, and it is vital to remain up-to-date. A third-party service provider will always inform you about the changing tax structure.

Also Read –

Why Outsource Accounting Services for Startups to Invedus?

In the world of commerce, ‘There’s nothing small about small business’ – a mantra that underlines the vast potential and the colossal spirit of small enterprises. At the heart of this potential lies an untapped reservoir of growth, efficiency, and innovation, which, when unlocked, can catapult small businesses into realms previously thought reserved for the giants of industry. This is where our outsourcing solutions come into play.

Accounting outsourcing services for startups to Invedus is an excellent choice because:

1. Affordable Pricing

We provide affordable accounting services for your startups or small businesses, and we assign an accountant according to the client’s specific business needs.

2. Top Class Services

We use the latest accounting software and tools to provide high-quality services for startup accounting.

3. Great Infrastructure

We have skilled finance and accounting experts and top-rated infrastructure to provide the best accounting services for startups consistently.

4. Experienced Team Of Professionals

We have an experienced team of accounting professionals with significant experience working with startups from different industries.

5. Data Security

We know that we have your most confidential thing, your data. We take good care of your accounting data. Don’t worry; your data will always be safe with us.

6. Short Turnaround

As we are a professional service provider, your outsourced accountants will complete your projects before the deadline.

We believe that every small business is a powerhouse of innovation, brimming with ideas that can revolutionise markets. However, the path to revolution is often hindered by the mundane yet critical operational tasks that consume valuable time and resources. That’s where outsourcing becomes not just an option, but a strategic imperative.

Our outsourcing services are tailored specifically for the small business that dreams big. From administrative tasks, wed development, digital marketing, to customer support, we handle the gears that run in the background, enabling you to focus on your core mission – growth and innovation.

By partnering with Invedus, you’re not just hiring a vendor; you’re embracing a partner who understands that ‘there’s nothing small about small business’. Together, we can scale your operations, enhance your productivity, and unleash your business’s true potential.

Let’s redefine what small businesses can achieve. With our outsourcing solutions, the size of your ambition is the only measure that matters

Outsourced-Accounting-Services-CTA-Invedus

About Invedus

Presented by the Marketing and Communications Team at Invedus, this space is dedicated to sharing the latest updates in IT and Non-IT sectors, as well as our insights on industry challenges. Subscribe to our mailing list to stay up-to-date and ahead of the curve.