It isn’t usually a lack of great ideas or innovation that cause the downfall of startups; more often than not, it’s simply bad financial management and planning.
And although many startups are cash-strapped in the early days, finding the money to invest in professional accounting and bookkeeping services from the outset, can help the business find its foothold in a competitive market, and avoid a financial disaster.
For example, with help from Coral Gables accountants, you can ensure that your cashflow is steady and predictable, you’re not paying more in taxes than you need to, and that you can make informed financial decisions for the future of your business with accurate and detailed monthly and quarterly financial reports.
Let’s take a closer look at the many benefits of budgeting for accounting and bookkeeping services when you’re running a startup:
- Credibility
Serious investors will always look at the books before deciding whether to give money to a startup, and if your financial records aren’t properly updated and presented, you could lose credibility and miss out on important, much needed funding.
- Sound financial health
With regular monitoring of your finances from a professional accounting and bookkeeping service, money issues can be identified early and prevented from turning into financial disasters.
- Scalability
Although growth is great, the kind of complex financials that can come with it, might prove too tricky for you to handle alone. From taxes and payroll, to expenses and funding, having the right professional help to ensure that your success doesn’t also become your downfall, can be crucial during any period of expansion.
Why budgeting for bookkeeping and accounting is essential for startups
By budgeting for bookkeeping and accounting services, you can do so much more than merely keep your books in order. Long-term growth, stability and profitability all require a robust financial foundation, and with professional help, that’s exactly what you can achieve.
Thinking that you’re saving money by not investing in help from an accounting firm in Coral Gables, is a mindset that could see your resources draining away quicker than you’d care to imagine. For instance, what about the cost of penalties and fines from the IRS when taxes are filed incorrectly or deadlines are missed? Penalties can be substantial, and one small error when filing your taxes, can see penalties quickly mount up until they exceed the cost of hiring professional help with your books. Add that to the tax credits and deductions, funding opportunities and grants you’ll likely miss out on because you didn’t know they existed, and before you know it, you’re not just losing money, you’re also not saving any.
It pays to see bookkeeping and accounting services as essential, rather than just something you should invest in if you have the funds. In fact, statistics show that those startups who budget for such services and make the financial health of their business a priority, are far more likely to become successful. Sound good? Invest in bookkeeping and accounting and turn your startup into a fully-fledged money making machine!
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