El Paso Startup Bookkeeping for Texas Entrepreneurs
A good accounting service here in El Paso, TX will help you be more efficient running your startup or small business.
The city of El Paso Texas has so many startups in our border city that many consumers are not aware of which brings a whole new segment to accountants and bookkeepers because as a technology or mobile application startup you are probably running with minimal budget and you have to report to your mentors, incubator and or angel investor. Maybe you are working under the HUB here in El Paso and you are thought to not spend on things and keep things lean. But every business whether you are a startup or a small incumbent business barely opening its doors; you are serving your future better by not dedicating time to the burdening and time consuming tasks of keeping your books in order.
Consider a scenario where you are forced to shut down your business after only a few months because you were sidetracked with administrative accounting things and not growing your startup? Getting more customers and validating your value proposition more and more… You be happy with that situation or would you preferred to have talked to a professional and see if that is an alternative for your situation right now?
While you may not need — or want — an accountant, you could at least consider a bookkeeper to help with the various financial aspects. Your only other alternative is to become a bookkeeper yourself so that you understand every aspect of your business! And that’s just not realistic.
Here is a simple guide that provides reasons to why hire a dedicated El Paso Startup Bookkeeping and Accounting service
1. Keep your focus on core startup needs.
A startup needs the attention of its founder, including his or her attention to growing the idea into a viable product or service. That means that, as that founder, your time should be devoted to strategy, marketing, funding and other key areas that require your focus over the daily operational tasks of a business.
2. Stay out of what you don’t really know or understand.
Not many founders have backgrounds in finance or even a working knowledge of accounts payable, accounts receivable and taxes. It’s better that a professional who took courses and was certified in these areas handle those aspects of the business.
That way, mistakes will be less likely, as well as issues that could cost you more money. Remember, if you miss a bill or forget to pay something important, this will significantly impact your business credit.
3. Calibrate a work-life balance.
While you could focus on core business needs and handle everything else in your startup, the problem is you’ll have no time left at the end of the day or week for yourself or your loved ones. Therefore, you’ll be missing that balance every person needs in order to stay healthy and not burn out on what you are doing.
4. Get a different perspective on the business.
Although you may believe you have a good idea about the state of your startup during the development phase, it helps to have another pair of eyes on this.
Your bookkeeper can put the financials in order and run reports showing how you are doing each month, where the funds are going and how your efforts are paying off (or might need improving upon). He or she will give you that “big picture” through the numbers being crunched.
5. Escape the tedious aspects of the startup life.
It’s hard to imagine that the financial aspects of your business make you excited. You likely have no passionate feelings about tallying up payroll or writing checks to pay the bills.
However, your bookkeeper may enjoy those tasks, so it makes sense to hand over these areas to someone who does them — and does them well — because of that motivation.
“Blue Pearl has been a great asset to my growing company. As a new business I wasn’t sure what to do, how to file or when to file…. Quickbooks was daunting but since I have a dedicated person helping with that, I have been able to focus on sales and managing my el paso cleaning business rather than trying to figure out how to record my expenses. ” – Diana V.
6. Make sure everything is paid on time.
Between traveling, keeping the startup moving forward, putting out the daily fires that pop up and staying balanced, something most likely gets left out along the way. And that often ends up being the bills that need to get paid.
You don’t want your credit impacted by late or forgotten payments, so put a bookkeeper in charge to give you the confidence that everything has been handled on time.
7. Ensuring correct tax filings is the responsibility of your El Paso startup bookkeeper.
The last thing you want is to get audited or have the taxman after you just because you forgot those quarterly or annual tax filings. Depending on the type of business structure you’ve created for your startup, you will have various tax requirements, including estimated tax payments, corporate tax payments, 1099s for contractors or freelancers and other filings.
It’s ideal to find a bookkeeper who can handle taxes a well as payroll and other financial issues.
8. Maintain startup cash flow.
Sometimes is better to hire dedicated professionals for your startup to reduce the impact on the burn rate. You can hire a web development agency to build an app or website for your El Paso TX startup or small business of doing it yourself or you could hire a lawyer to file those registration papers for Delaware instead of you learning and then doing it yourself. Same with finances, because you are so busy, you may not realize that there are outstanding payments from your client base. Any late payments here could infringe upon the cash flow you need to keep your startup humming along.
With a bookkeeper working for you, she can stay on top of this and send out reminders to make sure your cash flow remains optimal, just how we already do at Blue Pearl Bookkeeping and Tax. This will also look good when it’s time to seek another round of funding because you can show positive cash flow you might not have been able to show without that assistance.
9. Resolve conflicts of interest with any of your business partners.
With more than one founding partner, issues could arise where each partner has some idea of how the money should be spent and how to easily access it. Otherwise, conflict could arise that could impede the progress of your startup.
That’s why a bookkeeper should be the gatekeeper of the money, creating the necessary approval processes that stop partners from just withdrawing money.
10. Reduce the cost of financial obligations.
Although you may think you save money by doing everything yourself, the fact is that a professional bookkeeper actually saves you more. That’s because there is a reduced level of risk for human error, lack of knowledge, missed payments and tax obligation due dates and delayed accounts receivable.
Plus, your time is money that you could be using toward getting your new business running and bringing in the revenue to move to the next level.
From the time and money savings, to the focus on expertise and greater cash flow, a bookkeeper makes good business sense for your startup. So, go start the hiring process today.
As you grow your El Paso Texas Startup or New Small Business you will find that there are a lot of factors into play that will want to distract you from actually growing your business, we all deal with that. But knowing the differences between good management and leadership and best financial business management practices will lead you to hire a bookkeeping service like Blue Pearl because services like ours do provide value. Blue Pearl Bookkeeping of El Paso provides increased value for your lean methodologies because we are not expensive and we focus on small businesses allowing us to be more consultative than other accountants or bookkeepers at a much lower cost. Contact us if you are interested in a free tax or bookkeeping consultation.