Why Do Startups Outsource Accounting Functions?
If you operate a high-growth startup, you’re probably looking to raise venture capital. In this case, your management team needs access to carefully prepared profit and loss statements, balance sheets, and other critical reporting. You need experienced professionals with the knowledge and know-how to help you choose a quality accounting system and processes. Finding the right consultants can make it easy to meet the stringent requirements of venture capitalists and pass an unexpected IRS audit.
At Ravix Group, we offer finance and accounting consulting that includes setting up your accounting systems, producing monthly reporting, buttoning down your tax reporting, and so much more. Of course, you can still take your chances and do your accounting in-house. But, with a fractional CFO, project or staff augmentation, and other consulting services at your fingertips, why take the risk of in-house accounting?
Why Do Startups Outsource Accounting?
As your startup gains momentum, you need the ability to quickly scale to conquer new markets and raise the capital to expand your product offering. To accomplish this and other business goals, you need accurate, reliable, and stress-free bookkeeping, tax, and financial planning capabilities. That’s exactly what Ravix Group brings to the table.
Here are some of the factors that make outsourced accounting so attractive:
- Managing your revenue stream efficiently
- Winning capital from outside investors (put the right information in front of motivated investors)
- Scaling functions like payroll, tax, and benefits as you grow
- Setting your company up for sustainable growth
- Facilitating decisions with accurate financial data, the right technical tools, and seasoned professionals
Startups and early-stage businesses need cloud-based financial services to compete in the modern marketplace. From reducing operating costs to compiling accurate forecasts, outsourced accounting consultants can help you bridge the gap to your next revenue or profit goal.
You’ve Outgrown Your Bookkeeper – Here’s What Outsourced Accounting Can Do for You
Organization, due diligence, and responsiveness are just a few of the necessary traits that can transform the way your startup performs. Nurture your business with the right resources behind every financial spreadsheet and chart.
Here are some advantages of outsourcing your accounting functions:
- Organization: Your expert accountant monitors your compliance documents and can answer questions about your profit and loss, balance sheet, and forecasting reporting.
- Due diligence: Venture capitalists and companies interested in buying your startup will come to the boardroom with a team of accounting and finance experts. Why not have someone on your side of the table who can explain the numbers, smoothing over negotiations significantly?
- Compliance: The IRS doesn’t care if you’re new to the game. They expect you to have all the forms, reports, and backup data needed to audit your taxes. With every new change, federal, state, and local taxes become more complicated. Additionally, you’ll need someone who can handle M&A diligence and other critical accounting tasks.
- Taxes: Tax accounting goes beyond preparing your tax documents. To decrease your tax burden without triggering an audit, it’s important to have the right consultant on your side.
From financial modeling to defining key performance indicators for your industry, you can count on Ravix Group consultants to help nurture your startup into a viable, thriving organization.
For full-service outsourced accounting, Ravix Group has an unparalleled pool of talent. Contact us online or call us at 408 216 0656 for a free consultation on any of our accounting services. We’re happy to discuss how we can empower your startup.
