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As a startup founder, you have a lot on your plate, from developing your product to building your team. One important thing that often gets forgotten is your finances. Keeping track of your finances is crucial to your success but can be challenging to do on your own. That’s where startup bookkeeping services come into play.
Startup bookkeeping services take care of all the financial tracking and reporting so you can focus on other things. When it’s time to move on from doing your own bookkeeping, there are internal bookkeepers, traditional accounting firms, or outsourcing to technology-based services like Zeni.
So, which one is best? This article will cover the pros and cons of all three options.
For any business, large or small, bookkeeping is essential for measuring financial performance and informing strategic decision-making. This is especially true for startups with limited resources who understand the importance of carefully tracking their progress.
Bookkeeping entails tracking, recording, and organizing all financial records for the company. Bookkeepers are responsible for various tasks, including recording transactions, preparing financial statements, managing accounts payable vs receivable, and tax preparation. In many cases, they advise businesses on financial matters and help them make sound financial decisions.
For startups, the bookkeeping game is slightly different, especially in terms of paying for services. Budgets for startups aren’t typically flush with extra cash to hire internally for additional departments, like finance.
Many startups turn to bookkeeping software like Quickbooks* as a money-saving alternative, but there are limitations. As a company grows, bookkeeping needs often surpass what software can offer. When you reach that point in your business, numerous outsourced and in-house startup bookkeeping services exist. In this blog, we’ll be focusing on the following:
Each accounting service offers business owners insight into their finances with accurate record keeping for a price. Below, we’ll comb through the details of all three options so you can make an educated decision for your growing business.
Plenty of founders opt to do their own bookkeeping in addition to all their other duties until their company hits a certain point of growth. At that point, founders must look at their budget and choose between in-house or outsourced bookkeeping services.
In-house means your company hires an employee or team to perform day-to-day bookkeeping and accounting responsibilities. While in-house is the most conventional, this method has pros and cons.
Instead of hiring internally, businesses can opt to outsource their bookkeeping needs.
A traditional finance firm is one kind of outsourced bookkeeping option that you might choose. These financial institutions provide business bookkeeping and accounting services through a staff of CPAs and bookkeepers who support businesses on a contractual basis. Some firms also offer advisory services, such as financial planning, consulting, and tax services. Finance firms provide a wider variety of services but often have a higher price tag.
Price: Average range of $325 - $2,500 per month
In addition to using a traditional finance firm, there are several other ways to outsource your bookkeeping.
One of those ways is by bringing on a technology-based outsourced company. These companies provide more advanced bookkeeping methods using state-of-the-art technology, software and AI techniques to eliminate problems associated with remote outsourcing. Software automates time-consuming bookkeeping responsibilities, and as the client, you’ll have access to your company’s information at your fingertips.
Freelance bookkeepers are another option, but you can incur the same issues with an in-house bookkeeper. Anyone you hire may be stuck on traditional methods requiring time-consuming tasks. A freelance bookkeeper may also be working with multiple companies at a time, slowing down communication when you need answers to time-sensitive business questions.
As a founder, you constantly have to focus on multiple areas of the business. Bookkeeping and accounting shouldn’t have to be one of them.
At Zeni, we combine the most advanced bookkeeping technology as an outsourced service for startup founders looking to lift the weight of company bookkeeping off their shoulders. We provide bookkeeping services with add-ons, including tax preparation and all-inclusive CFO services for startups.
At Zeni, we offer:
Real-time financial reporting is a huge benefit when startups go a mile a minute. Learn more about our outsourced bookkeeping services and what we can do for you.
*Quickbooks is a partner of Zeni.
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