One of the most crucial parts of running a small business such as a startup is perfecting your finances. Staying in compliance and making sure you have enough runway to pay all employees and cover software charges will help you maintain the health of your business. However, finding reliable employees to hire as full-time finance team members can be costly, not to mention the expenses that come with purchasing software licenses that allow for in-house accounting and budgeting. In this article, we will explore the top 5 reasons why you should consider hiring an outsourced financial consultant for your startup organization.
Reduce Your Operating Costs
As a startup, operating in a low-cost, lean model is a top priority. Instead of bringing another full-time member onto your team, hiring an outsourced financial consultant can help your business save money. Not only can you utilize their services on an as-needed basis, but you’ll avoid having to pay for things like commute stipends and other perks. You can also only call upon your outsourced consultant during tax season, or before embarking on a new funding mission. This way, you’ll get the most bang for your buck, which is the name of the game in startup land!
No Need to Provide Training
Instead of running a complete onboarding plan and providing training to new employees, outsourced help can start instantly without having to be introduced to the company’s mission, vision, values, and operating norms. You won’t have to abide by compliance rules that full-time employees require, so you can avoid typical HR tasks required during standard onboarding. By hiring an outsourced financial consultant, you’ll be able to hit the ground running and get the help you need, without providing guidance on how to get the job done.
You’ll Have Access to Advanced Accounting Software
When seeking consulting help, these professionals will typically work for a larger agency or outsourcing organization. They will have access to advanced software and systems needed to get the job done. The price you pay for the outsourced employee will have software fees built into the hourly rate, so you don’t have to worry about paying for a tax or accounting subscription of your own. This is a huge perk, especially if you are a small company!
Scale Your Business in Either Direction
Contractors provide work when needed, so you can call upon them when you have a project that requires their services. If business is slow in the post-holiday season, you can scale back on your headcount and choose to put their services on hold. On the other hand, during a busy time such as tax season, you can bring them on board to help ensure your organization is compliant.
No Need to Provide Benefits, Equipment, or Office Space
Since your contractors do not require the same benefits as full-time employees, they are a lot less costly than traditional hiring. You won’t need to provide contractors with benefits such as health, vision, and dental insurance. You also will not be expected to provide them with equipment or office space, as many contractors use their own technology and work remotely, from anywhere in the world.
We hope this article helps you better understand the benefits of hiring an outsourced financial consultant for your organization. This is one of the best things you can do when hiring for a fast-moving startup! For personalized advice on bookkeeping services, contact us for a free consultation today!