For the majority of startups, bookkeeping is challenging and most often a full-time, in-house bookkeeper is outside the budget. This is when you should hire remote bookkeeper for your startup. When you hire a virtual bookkeeper, they provide your startups with financial insight without the cost of in-house staff.
Whether needing assistance with time consuming tasks or growing too fast, a virtual bookkeeper can put your books together, enhance visibility into cash flow, and have your company audit-ready.
The Fino Partners provide offshore bookkeeping for early-stage companies, who are accustomed to the high-pressure, fast-paced life of the startup business. In this article, we break down what it's like to hire remote bookkeeper and what you can expect from them.
7 Benefits That Make It a Smart Decision
In today's time, efficiency is everything. Instead of full-time staff, most founders would rather hire a virtual bookkeeper or contract a remote bookkeeper's services so they can keep their books balanced.
It is a simple, cost-effective solution that can be scaled according to how big your company becomes. The reasons many startups hire remote bookkeepers are:
1. Economical Handling of Money Without Compromise
Startups are lean and tight on budget, and every single one of your hires must have a high ROI. When you hire remote bookkeeper, you're not paying for full-time salary costs, office rent, benefits, and payroll tax.
You're only paying for what you consume, be it a couple of hours a month of reconciliations or full-cycle book services. That cost-effectiveness enables you to invest the savings into growth, product development, and marketing while maintaining accurate, up-to-date financials.
2. A Wider Selection of Talents to Select From
Having an online bookkeeper connects you to the world's best talents. No longer do you have the limitation of having to find a local person or driving distance. You can outsource a professional who understands your business type, someone who knows about startup problems and can give you expert advice.
Having access to specialist expertise means your accounts get sorted professionally, no matter how complex your company is.
3. Scalability Integration for Scaling Businesses
One of the greatest advantages when you hire a remote bookkeeper is the ability to scale up or down as needed. Just closed some funding? Need someone to help for tax season? remote bookkeepers can scale up or down easily according to your needs.
Most online bookkeeping businesses offer tier pricing, which is a setup where the more your business expands in terms of size, the more you can expand your financial investment without needing to rehire or re-train.
4. Real-Time Access to Financial Reports and Analysis
Virtual bookkeepers work on cloud-based bookkeeping software like QuickBooks Online Accountant, Xero, or FreshBooks. When you hire a virtual bookkeeper, not only do you outsource from reputable providers, but you are also gaining access to your bottom line in real-time.
With a push of a button, you can scan reports, track cash flow, or build profit and loss statements. Real-time access allows you to make faster, data-driven decisions, which are critical in today's startup economy, where growth is rapid.
5. Lower Error Rates and Better Compliance
Startups cannot risk costly mistakes or delayed payment of taxes. When you hire remote bookkeeper, you are outsourcing someone who has the responsibility to follow accounting protocols, keep up with tax payment deadlines, and balance your books.
They know standard startup costs and deductible business expenses and can help prepare for investor audits or due diligence processes. This shields you from penalties, saves you money, and gains the trust of stakeholders.
6. Frees Founders to Get on with the Things That Count
As the owner of a startup, your time is best spent creating your product, attracting customers, and defining strategy, not lying awake at midnight worrying about balancing books.
When you hire a virtual bookkeeper to do your bookkeeping for you, you take away the day-to-day hassle of spreadsheet entry, locating invoices, and running payroll. You gain hours a week, taking away stress and enabling you to focus on what actually drives your business.
7. Smooth Integration with Start-up Software and Processes
Startups utilize Stripe, PayPal, Shopify, or Gusto. For most virtual bookkeepers, it is not very difficult to have experience implementing such systems into your bookkeeping system for the first time.
A remote bookkeeper will ensure there is proper communication between accounting, payment, and sales. Integration and automation avoid mistakes in manual entry, give real-time reporting, and free your team from boring admin tasks.
Top Tested Tips to Hire the Best Virtual Bookkeeper for Startups
The following is what entrepreneurs should know before they hire remote bookkeeper:
1. Define Your Bookkeeping Needs
Create a clear idea of what exactly your startup requires before you hire a virtual bookkeeper. Do you need data entry services on a daily basis, reconciliation of accounts monthly, or financial statement preparation? Or perhaps tax and budget assistance? Your bookkeeping requirement will be based on whether you are pre-revenue, growth, or ready for funding. Knowing your bookkeeping enables you to hire a virtual bookkeeper who is aware of your objectives and volume of work.
2. Seek Startup-Specific Experience
Startups possess a distinct financial landscape that is not similar to older companies. They need experts familiar with opportunistic cash expenditures, seed-stage investing, and frequent pivoting. When you hire a virtual bookkeeper, seek one who has experience working with startups or digital-first companies initially.
This way, they will already possess the skills to address fluctuating revenues, investor reporting, financial modeling, and rapid growth. Their expertise in startup-only systems such as Stripe, SaaS metrics, or seed-stage reporting provides your company with a financial advantage.
3. Validate Cloud Accounting and Technical Competence
A virtue bookkeeper will be familiar with cloud accounting software like QuickBooks Online, Xero, Zoho Books, or FreshBooks. Cloud apps provide instant access to collaboration and transparency that remote staff need.
Ask if they are certified on any of these platforms or have used other apps your business employs (like Gusto payroll, Expensify for expenses, or Shopify for e-commerce). Technically adept bookkeepers reduce errors and make your finances run smoothly.
4. Start with a Trial Project or Temporary Assignment
Rather than signing up for an extended contract, test it out first with a mini-trial. Perhaps it is processing a month's transactions, generating a basic report, or optimizing some old accounting records.
This test will enable you to determine their expertise, how many hours they take to complete tasks, how communicative they are, and how familiar they are with your particular business model. If it works, then you can have a longer contract with confidence.
5. Check Credentials, Experience, and References
Everyone can proclaim to be a bookkeeper, but remember everyone is not equal. Inquire if they have technical knowledge such as QuickBooks ProAdvisor or Xero Certified Advisor. Request credentials for formal education. Above all, request previous client feedback or reviews, hopefully from other startups. Check if they were responsible in their work, be it reporting accurately or being punctual on deadlines. Word of mouth is your best assurance.
Related Article
- Hire a Remote Bookkeeper for Your Business Today
- How Much Does It Cost to Hire a Bookkeeper in the USA?
- How Outsourced Bookkeeping Can Boost Your Business Efficiency
It is not only a good decision to hire remote bookkeeper, instead it's a smart, tactical, and long term strategy that can introduce transparency, consistency, and trust into the books of your startup. From executing daily transactions to preparing books for investor pitches, a seasoned virtual bookkeeper provides founders with the freedom to scale without being stressed about spreadsheets.
If you're ready to streamline your financial operations and stay ahead of the curve, The Fino Partners can help you simplify your journey. We specialize in connecting startups with reliable, experienced remote bookkeeping professionals customized to your needs. Reach out to The Fino Partners today and take the first step toward smarter financial management.
