Why is it Important to Hire a Firm to do Bookkeeping Instead of a Freelance Bookkeeper?

Hiring a firm to do bookkeeping instead of a freelance bookkeeper can provide several benefits for a startup.

Expertise: An accounting firm will typically have a team of experts with a wide range of skills and experience in areas such as tax planning, financial analysis (FP&A), and accounting systems and software platforms. This can help ensure that the startup's finances are being handled correctly and efficiently, and that all aspects of the business are being considered when making decisions.

Scalability: As a startup grows, so will its financial needs. A professional accounting firm will be able to scale with the company and provide the necessary resources to handle an increasing workload, including the ability to handle more complex financial tasks such as budgeting, forecasting and financial statement preparation.

Compliance: A professional accounting firm will have a good understanding of the legal and regulatory requirements related to bookkeeping and can help ensure that the startup is compliant with all applicable laws and regulations. This includes ensuring that the startup is adhering to Generally Accepted Accounting Principles (GAAP) and filing taxes correctly. This can help prevent costly penalties or fines that can arise from non-compliance. Additionally, the firm can help the startup navigate the ever-changing tax laws and regulations.

Backup: A modern accounting firm will typically have multiple team members who can handle the bookkeeping, ensuring that there is always someone available to step in if needed. This can provide peace of mind for the startup, knowing that the financials will not be left in the hands of just one person. This is especially important in case of unexpected events such as illness, vacation, or turnover.

Peace of mind: By entrusting a modern accounting firm with the bookkeeping, the startup can focus on running the business and not have to worry about the financials. This can provide peace of mind for the startup, knowing that the financials are being handled by experts who understand the complexities of running a business. This can also free up time for the startup to focus on growth and expansion, rather than worrying about the financials.