Entrepreneurs are innovators who typically prefer focusing on their new product or service because that is what drove them to start a new business. Unfortunately, the Small Business Administration says that only 50% of small businesses survive beyond five years.
There are many reasons for the failure rate, including cash flow issues, insufficient investment in effective marketing to grow sales, and not having access to Key Performance Indicators (KPIs), to name a few. Business bookkeeper services for startups ensure entrepreneurs begin their businesses with the good recordkeeping needed to make smart decisions going forward.
Avoiding Common Startup Mistakes
Starting a business takes a lot of planning, resources, and the entrepreneur’s time. Though some business owners decide to delay hiring a professional bookkeeping service, the sooner business bookkeeper services are engaged, the better. There is a list of common bookkeeping mistakes because being an innovator does not mean the person has the knowledge to maintain financial records. Without accurate records, it is impossible to do strategic financial planning to grow the business.
Common mistakes business founders make include mixing cash and accrual systems, not routinely updating financial records, paying vendors incorrectly or duplicating payments, and incorrectly recording expenses. These kinds of mistakes produce poor financial information.
Access to Financial Information Makes a Difference
Trying to run a successful business without access to financial information when it is needed for decision-making is challenging. One of the many benefits of business bookkeeper services is access to current financial information when needed to support critical decisions. Financial information access can mean business success or failure for entrepreneurs growing a startup.
The Bookkeeper offers business bookkeeper services to businesses at all stages of development and growth. You can find more information about our services at https://thebookkeeper.com.