When starting a business, you have definite goals. One of those goals is to thrive within the market and be one of the most notable firms in the industry. Pivoting towards that goal takes a leap of faith, and surviving the tough market is another.
Staying on track of your business is not going to happen if you are repeating the same mistakes every failed business has done in the recent past.
Of all the businesses in Australia that have been established back in 2014, less than 49% of them are still operating. 51.4% of them didn’t make it to their fifth year founding anniversary.
From the Australian Securities and Investments Commission survey, these are top three reasons why businesses fall flat:
1. Businesses ran out of cash amounts to 47% of the report
2. Poorly executed business management at 46%, and;
3. Poor financial control, including the lack of consolidated transaction records to a whopping 35%.
These three reasons boil down to one big culprit- most newly-established firms ignore the value of properly-structured accounting systems.
Whether you like or not, you cannot run all key business processes alone.
It is quite impossible for you to succeed in business development and marketing while doing accounting yourself. The result? Having to sell your property or going out of business, for good.
Here’s another reason why businesses hit the rock bottom:
9 out of 10 new SMBs opted to start with zero staff. These businesses rely on their own diagnosis of their problems and try to solve them with a lack of expertise. If you are a mom-and-pop corporation thinking of running everything on your own, you are pointing your business to bankruptcy.
Non-employing firms are observed to have only 43% of survival rate within a period of 4 years. Meanwhile, firms that have outsourced their operations withstand the challenges of business survival at 60%. This only means one thing, hiring skilled people to carry out specific business processes is crucial. Hiring an accountant or a bookkeeper to keep an eye on your financial decisions and advise you when necessary is an even more crucial necessity.
But, why should you hire an outsourced bookkeeper or accountant?
To Free Up Your Much Needed Time
Yes, you can do accounting and bookkeeping yourself. You can even handle payrolls and monitor your budget stipend. These can all be possible, until you realise that an average SMB owner spends a minimum of 16.5 hours every single month to do accounting.
Think about all the hours you could have spent on strategic work such as marketing and creating advertising campaigns. You could have spent all those lost hours trying to generate more revenue and getting a substantial ROI. After all, being a startup, your priority is to get back your capital.
These business development processes present better returns in exchange of paying an outsourced bookkeeper about $6.5 per hour.
Having a dedicated bookkeeper in your team frees up an unbelievable amount of time you can use to strengthen your business’ roots and bring in more conversions.
You Get Better Data Analysis
82% of business closed down due to poor cash flow management.
An outsourced bookkeeper skilled in Xero can interpret what the numbers mean for your brand. By overseeing cash flows, foreseeing operation expenditures and allotting funds for their sole purpose- hiring an outsourced bookkeeper can save you from debt.
Through data that translates from your sales, expenses, and investments, a seasoned remote accountant can give you financial forecasts and prepare financial safety nets. They can also prepare a sound and accurate financial reports that can gauge your growth in revenue and your market performance.
You Get Credible Financial Advice
If you don’t know what to do with your money, it’s best to invest in hiring someone that can tell you how best you can grow your ROIs from it.
Outsourced accountants can guide you through financial planning such as capitalisation, creating investments, collaterals, stocks, and financing.
This gives you a way to be aware of your business decisions that involve money. Now, you can develop and execute vital strategies in advertising and marketing that fits your bill.
2.4 million Australians see a financial adviser, and you as a business, face the same need. From establishing a physical office, managing payroll, funding projects and supporting expansion- you need someone of working knowledge to take you by the hand.
We at 121 Outsource understand where you are coming from as a startup. We were there about two years ago. Now, we have helped hundreds of our clients find the best bookkeeping guru for their team. Through thorough recruitment processes and a multitude of skill tests, we endorse you nothing but the finest calibre of talents. Trust us in finding your next bookkeeper. Reach out to us now.