Imagine this: You’ve just closed the books on your company’s finances for the last quarter. As you glance over the numbers, your stomach drops. Your gross revenue is down. Again. To make matters worse, your eyes glaze over as you see the long list of bookkeeping tasks that need your attention. This article explores the benefits of hiring a bookkeeper, with a special focus on the best outsourced bookkeeping services to help you achieve your financial goals. Outsourced bookkeeping services can help you get your business back on track and relieve your stress. This article will help you find the best service for your needs.


Haven’s accounting services for small businesses offer a valuable solution to help you understand and manage the best outsourced bookkeeping services for your company. 

Benefits of Outsourced Bookkeeping Services

Save Money and Boost Efficiency with Outsourced Bookkeeping Services 

When you outsource your bookkeeping, you can save money and operate more efficiently. Instead of paying wages, superannuation, and all the costs of hiring someone directly, you only pay for the bookkeeping services you use. 

This can save you a lot of money. Studies show businesses can save 15-30% on costs by outsourcing their accounting. Plus, with the challenge of finding good employees, outsourcing means you don’t have to spend ages hiring someone. You get access to experienced professionals right away.

Keep Financial Operations Running Smoothly 

If you rely on just one person in-house, what happens when they’re sick, leave, or take holidays? Your payroll and payments can get delayed, and you might miss important deadlines. Outsourcing means your bookkeeping continues uninterrupted, regardless of the circumstances. A dedicated team ensures your books are always up to date and you meet all your obligations on time. 

Get Expert Help and Stay Compliant 

Australian tax laws can be tricky. Professional bookkeepers know all the rules, ensuring you comply with ATO requirements. They have expertise in tax, payroll, and financial reporting. Unlike an in-house team of one person, an outsourced team brings a range of skills and knowledge. 

Grow Your Business Without Extra Headaches 

As your business grows, your bookkeeping needs change. Outsourcing lets you easily adjust your financial management without having to hire and train new staff. Whether you need more help during busy periods or want to streamline things, an outsourced service can adapt to your needs. 

Protect Your Business from Fraud 

Unfortunately, fraud is a significant issue for businesses. Having only one person handle your finances can make it easier for fraud to go unnoticed. Outsourcing adds an extra layer of checks and balances. Reputable bookkeeping firms have strong security measures to protect your financial information and multiple people looking at your accounts, reducing the risk of errors and fraud. 

Focus on What You Do Best 

As a business owner, your time is better spent on growing your business, not on bookkeeping and endless admin work. Outsourcing frees up your time, allowing you to focus on key areas such as developing new products, enhancing customer service, and expanding your business. Let the experts handle the finances so you can focus on what you do best. 

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

When is the Best Time to Outsource Bookkeeping Services

There’s no wrong time to outsource your business’s bookkeeping. The sooner you make the switch, the sooner you can benefit from: 

• Greater accuracy
• Efficiency
• Peace of mind

That said, the right time often depends on the unique needs and challenges your business is facing. 

Outsourced bookkeeping is especially valuable for startups and small businesses that need flexibility without the cost of hiring full-time accounting staff. But even well-established companies can benefit when complexity increases or internal resources are stretched. 

Here are a few key signs it might be time to outsource: 

Your Team Lacks Accounting Expertise

If your staff is struggling to keep up with financial tasks or if you’re relying on someone without formal accounting training, it can quickly lead to mistakes. This is especially risky as tax laws and reporting requirements continue to change. Outsourcing gives you access to professionals who stay current on regulations and best practices.

Bookkeeping Is Taking Up Too Much Time

When your team is spending more time on reconciliations, receipts, and invoices than on growth-oriented tasks, it may be time to reevaluate. Outsourced bookkeeping allows your team to focus on what they do best while specialists handle the financial details.

Cash Flow Tracking Is Inconsistent

If your cash flow reports are frequently delayed, missing, or inaccurate, it becomes harder to plan effectively. Inconsistent tracking can lead to poor financial decisions or missed opportunities. Outsourced professionals can ensure your books are updated regularly and correctly.

Missed Deductions or Filing Errors

A lack of tax expertise can result in lost deductions or errors in your filings, both of which can cost your business money. Outsourced bookkeepers are trained to spot opportunities for savings and help you stay compliant with all filing requirements.

Financial Reporting Is Inadequate

If your current setup doesn’t provide timely and meaningful financial reports, you're likely making decisions in the dark. An outsourced bookkeeping service can provide accurate financial statements that support more innovative, data-driven business strategies.

Your Workload Is Seasonal or Transaction-Heavy

In industries with high transaction volumes or seasonal fluctuations, it’s common for in-house bookkeepers to either be overwhelmed or underutilized. Outsourcing offers a scalable solution that adapts to your workload, no matter the season.

Why Startups Choose Outsourced Bookkeeping Over In-House Teams

In short, the best time to outsource your bookkeeping is when your internal resources are stretched, your reporting lacks clarity, or you're ready to scale more efficiently. With the right provider, you can reduce risk, improve accuracy, and free up valuable time to focus on growth.  

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket, as well as fractional CFO services. Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
• Bookkeeping Services List

21 Best Outsourced Bookkeeping Services to Help Manage Your Finances

1. Haven: A Reliable Partner for Startups

Haven is the trusted outsourced bookkeeping partner for over 400 startups, and for good reason. Built by founders for founders, Haven takes care of everything from daily bookkeeping to complex tax filings, R&D credits, and fractional CFO support. Whether you need help staying on top of financial operations or maximizing cash flow through available credits, Haven makes it simple. Our team of experienced CPAs works around the clock, providing 24/7 Slack support and guidance tailored to the fast-paced nature of startup life. 

With Haven, you can: 

• Eliminate time-consuming admin tasks 
• Stay compliant with zero missed deadlines 
• Unlock tax savings through R&D credits 
• Access real-time insights from financial experts 

Let your business take flight while we manage your financial runway. Book a call today to see how Haven can help you focus more on growth and less on bookkeeping.

2. Bench

Bench, America’s largest bookkeeping company for small businesses, uses its own accounting software, saving startups from paying for separate subscriptions. Startups can access their financial data even after canceling their Bench subscription, making it an excellent choice for small businesses. Bench offers pricing options starting at $249 per month (billed annually) or $299 per month (billed monthly).

3. Kruze Consulting

Kruze Consulting is an online provider for startups of: 

• Accounting
• CFO
• Tax
• HR services

Working with Seed, Series A, and Series B startups, they offer outsourced bookkeeping starting at $600 per month.

4. Pilot

Pilot provides back-office services, including bookkeeping, controller, and CFO services. Pilot is designed for startups with high-growth potential and works well for companies with strong financial backing. 

Pilot plans start at $499 per month. The price of Pilot’s services increases as the business grows, so startups need to keep track of the monthly cost.

5. Bean Ninjas

Tailored to ecommerce companies, Bean Ninjas offers bookkeeping, sales tax collection, and financial reporting for scaling 7- and 8-figure small businesses.

6. ClearTax

ClearTax is India’s most significant tax and financial services accounting software platform. With services ranging from tax consulting to accounts receivable, they offer solutions for both individuals and small business owners.

7. Accountalent

Accountalent provides unlimited, comprehensive income tax, bookkeeping, R&D study, and financial services for startups and small business owners. Bookkeeping services start at $199 per month, and dedicated CPA support is $2,450 per year.

8. FlowFI  

FlowFi is an accounting startup that matches small businesses with finance experts to assist with their financial statements and other accounting needs. Aimed at startup growth, FlowFi provides access to: 

• CFO
• Accounting
• Tax professionals

9. Inkle

Inkle is a US-based tax and bookkeeping automation accounting software platform for startups. Designed to replace your existing CPA and perform state and federal filings, Inkle offers basic tax services for $30 per month.

10. Rillet

Rillet is an accounting platform for SaaS and usage, providing automated reporting and SaaS metrics for accounting teams, finance firms, and founders. Plans start at $199 per month, along with a 30-day free trial.

11. Graphite Financial

Graphite Financial is an accounting service for early-stage and high-growth companies. Providing accounting, strategy, and tax preparation services, their plans start at $900 per month.

12. Zinance

Zinance is an online accounting service that syncs your business products with popular finance software, thereby streamlining workflow and ensuring compliance. Plans start at $179 per month and can be customized for US-based or international companies.

13. Finta

Finta is an accounting platform designed to allow founders and startup operators to manage: 

• Their taxes
• Bookkeeping
• Financial statements

Plans begin at $100 per month with additional add-on features available.

14. Less Accounting

Billing itself as the world’s simplest bookkeeping software, Less Accounting is an accounting platform for startups to record business expenses, send invoices, and manage accounts receivable. Plans begin at $24 per month, along with a free trial.

15. Bookkeeper360

Bookkeeper360 is an accounting service for small- to medium-sized businesses that provides: 

• Payroll
• Tax
• CFO advisory solutions

Monthly services start at $399 per month, with pay-as-you-go options also provided.

16. Punch Financial

Punch Financial offers high-level financial strategy and accounting services for bookkeeping prices. Designed to replace hiring an in-house CFO, they offer services starting at $1,500 per month.

17. Manay CPA

Manay CPA is a full-service accounting and tax service platform, providing new business: 

• Formation expertise
• CPA services
• Accounting and tax planning

18. QuickBooks Live Bookkeeping

QuickBooks Live Bookkeeping is an online bookkeeping service from Intuit, the makers of the popular bookkeeping, tax, and financial software: 

• QuickBooks
• TurboTax
• Credit Karma

Connecting customers to verified virtual bookkeepers, their platform starts at $15 per month for their assisted bookkeeping services and $300 per month for their

19. Tukel, Inc.

Tukel, Inc. offers bookkeeping, reporting, and tax services for online business owners, SaaS, and e-commerce companies. Plans start at $389 per month, with custom plans also available.

20. Fincent

Fincent is an accounting platform that combines software with certified bookkeepers to help US-based businesses manage their finances. Plans start at $299 per month based on your company’s monthly expenses.

21. Acuity

Acuity offers advanced virtual bookkeeping and accounting services through tiered subscriptions, each providing a dedicated bookkeeper and unique quarterly CFO insights. For startups seeking a finance expert, Acuity’s premium plan includes: 

• A virtual bookkeeper
• Account manager
• Tax services
• Monthly CPA meetings

Prices start at $449 for bookkeeping and $2,209 for a combined bookkeeping and accounting package, with custom plans available.

Choosing the Best Outsourced Bookkeeping Services for Your Business

Start by understanding exactly what a potential bookkeeping provider offers. Some firms may focus on basic transaction entry and reconciliation, while others provide additional services such as: 

• VAT filing
• Cash flow forecasting
• Payroll
• Financial reporting
• CFO-level insights

A startup’s needs can change rapidly, so it's wise to choose a partner whose services can grow with your business. Look for flexibility and range.

Customisation and Industry Fit: One Size Does Not Fit All

No two startups are the same. Whether you’re a SaaS company dealing with deferred revenue or an e-commerce business with inventory accounting, your financial needs will be unique. Ask whether the bookkeeper can tailor their approach to your model. 

Those with startup or industry-specific experience are often more effective because they understand the quirks, tax treatments, and regulatory hurdles your business may face.

Security of Financial Data: Protect Your Sensitive Information

Bookkeeping involves access to sensitive financial information, so security is non-negotiable. Confirm that your chosen provider uses encrypted communications, multi-factor authentication, and secure cloud storage. Compliance with data protection laws, such as the GDPR (if applicable), should also be part of their protocol.

Experience and Qualifications: Who’s on Your Team?

Don’t hesitate to probe into the qualifications and background of the team. Are they certified (e.g., ACCA, CPA, ICAEW)? Do they have experience with startups at your stage?

• Pre-revenue
• Seed-funded
• Scaling

A bookkeeper with relevant experience can offer not only accuracy but also insights that help shape financial strategy.

Software and Tech Compatibility: Get the Right Tools for Your Business

Tech-savvy bookkeeping firms can streamline operations using modern tools like Xero, QuickBooks, or Zoho Books. But beyond that, ask whether the tools they use are compatible with your existing tech stack, especially if you use platforms like: 

• Stripe
• Shopify

Transparency and Communication: Stay in the Loop

Outsourcing doesn’t mean disconnecting. You need a bookkeeper who offers transparent processes, shares reports regularly, and maintains open lines of communication. 

• Will you have a dedicated account manager? 
• How often will they review your books with you?

Pricing and Value for Money: Look Beyond the Numbers

Understand how fees are structured:

• Hourly
• Fixed monthly retainer
• Service-based tiers

Beware of providers who charge low up front but bill heavily for add-ons. Look for clarity, predictability, and a pricing structure that reflects the value they bring without putting pressure on your cash flow.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven helps startups manage their finances, allowing them to focus on building their business. We help our clients save money with tax credits, file their taxes on time to avoid penalties, and offer financial insights to help them achieve their goals. 

Our clients include over 400 tech startups, and we understand the unique challenges that growing businesses face. Hiring a bookkeeping service like Haven can help your startup: 

• Get organized
• Get ahead
• Reach of the next level

What Will I Get When I Hire Haven?

When you hire Haven, you will get a dedicated team of financial experts to support your startup. We assign each client a professional bookkeeper to manage their day-to-day finances. 

You will also have access to tax specialists to help you save money on your business tax returns and R&D credit consultants to maximize your cash flow and keep your operations running smoothly. Our team will make sure you never miss a filing deadline, and we provide 24/7 support via Slack to answer your questions.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business
• Best Bookkeeping Services

Managing your business’s finances is critical to success. The benefits of hiring a bookkeeper include ensuring your financial records are accurate and up to date. This not only helps you make informed business decisions but also relieves stress when tax season arrives. If you’re ready to learn about the best bookkeeping services to hire for your business, you’re in the right place. This article will help you understand what to look for in a bookkeeping service and how to choose the right one for your business. Accounting services for small businesses help you achieve your financial goals. 

Why Businesses Are Choosing To Outsource Their Bookkeeping Services

As a business owner, you may have considered having an in-house bookkeeper or outsourcing your accounting work. More than one-third of businesses outsource their accounting work.  Managing all accounting operations in-house isn't ideal for cost efficiency or productivity. Think of a day when you do not have to do any bookkeeping. You could use your time more effectively, focusing on business growth. 

The practice of outsourcing promotes cost savings along with facilitating expansion.  It works well for small business owners who can not afford in-house bookkeeping. 

Remote Access and Real-Time Collaboration: The Power of Cloud-Based Bookkeeping

Let's take a look at the benefits outsourcing bookkeeping offers:

1. Saves Operating Costs

Outsourcing helps you save costs on hiring full-time or part-time bookkeepers. In-house bookkeepers charge from 35,000$ to 55,000$ a year. You only pay for the accounting services you need when you outsource the work. This helps your company save 40% to 60% on overall revenue.

Hiring an employee involves more costs than just payroll services. The other expenses include: 

• Insurance
• Training
• Benefits
• Recruiting

Someone in your business will have to devote time to training a bookkeeper. You will need a person to cover sick leave and public holidays for the bookkeeper. When total personnel costs are calculated, outsourcing bookkeeping proves to be a cost-effective option. 

Instead of allocating funds towards bookkeeping, you can spend them on essential employees. For instance, hire more mechanics if you own a car maintenance shop. This will decrease wait time and improve productivity.

2. Save Time and Reduce Paperwork

Managing and reconciling financial records can be a considerable time drain on your day. Loads of physical paperwork are time-consuming. A benefit of outsourcing bookkeeping is that you save much time at a much lower cost.

When the burdensome work of bookkeeping is outsourced, you can focus on aspects that require your attention. 

You will have more time to improve: 

• Customer service
• Monitor processes
• Improve overall operations

3. Access a Cloud-Based Bookkeeping System

The prominent outsourcing companies work on a completely online interface. It helps them to streamline processes and manage the work effectively. Since all your operations are handled on a cloud-based system, you can access your data from anywhere.

Since it is based in the cloud, you, along with your bookkeeping company, can access records at any given time. This collaboration means the company can instantly input your income and monthly expenses. It gives you a clear view of your finances and new transactions.

4. Reduce Errors

Errors in bookkeeping or accounting services can have several causes. An inexperienced bookkeeper is more vulnerable to making mistakes. Even if you hire an experienced in-house bookkeeper, you accept that they will make some errors in their initial period. Before the numbers are error-free, bookkeepers need a specific period. 

You will already have a team with much-needed expertise when you outsource your bookkeeping work. The team will utilize automated bookkeeping software to track your finances and leverage their knowledge to resolve any issues.

5. Get Detailed Financial Reporting

A primary benefit of outsourcing bookkeeping is the detailed financial insights that come along with it. You can review your balance sheets, cash flow, and incurred profits and losses. You can assess your clients’ financial data with a click for better-informed decisions. 

Bookkeepers have an organized way of recording information. Extracting information from the report is easy. This information can be shared with stakeholders, employees, and financial advisors. Insights like this are essential at any given stage of your business.

6. Helps in Tax Seasons

Several companies find it challenging to get all their records intact for tax preparation. Even others with an accounting system often find out it does not follow tax rules. 

Outsourced bookkeeping companies have tax experts on staff who ensure your processes are tax compliant. These companies guarantee that they will complete the bookkeeping tasks before the tax season arrives. Experts will help you to file tax returns conveniently and accurately.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

When Should You Outsource Bookkeeping?

While every business is unique, sure signs indicate that it's time to consider outsourcing your bookkeeping tasks. 

Here are some telltale indicators:

1. Lack of Expertise

Bookkeeping requires specialized knowledge, and if you or your team lack the necessary expertise, errors and compliance issues may arise. When financial management becomes overwhelming or time-consuming due to a lack of knowledge, it's a clear sign that you need the expertise of a professional bookkeeper.

2. Inefficient Processes

Are you spending excessive time on manual data entry, reconciliations, or generating financial reports? These repetitive tasks can be streamlined with the help of automated systems and experienced bookkeeping professionals. Outsourcing allows you to leverage efficient processes and advanced technologies that enhance productivity and accuracy.

3. Growing Complexity

As your business expands, the complexity of financial transactions increases. Managing multiple bank accounts, tracking inventory, handling payroll, and ensuring tax compliance can become overwhelming. 

If you find it challenging to keep up with these complexities, it's an indication that outsourcing bookkeeping can provide the necessary support to manage your growing financial demands.

4. Inaccurate Financial Reports

Reliable financial reports are vital for making informed business decisions. If you notice inconsistencies, errors, or delays in generating financial statements, it's a sign that your bookkeeping needs professional attention. Outsourced bookkeepers can ensure accurate reporting, enabling you to gain valuable insights and make sound strategic choices.

5. Compliance Concerns

Tax regulations and accounting standards are constantly evolving. Staying compliant requires staying up to date with these changes, which can be time-consuming and complex. Outsourced bookkeeping services ensure that your financial records adhere to the latest regulations, reducing the risk of non-compliance and associated penalties.

How Haven Empowers Startups with End-to-End Bookkeeping and CFO Services

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket, as well as fractional CFO services. Join 400+ startups who’ve saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

15 Best Bookkeeping Services To Hire

1. Haven 

If you're a founder juggling product, growth, and hiring, bookkeeping is probably the last thing you want to deal with, and that’s exactly where Haven comes in.

Built by founders for founders, Haven isn’t your typical bookkeeping service. It’s a comprehensive financial operations partner explicitly designed for startups and fast-growing businesses. From daily bookkeeping and tax compliance to R&D credit optimisation and fractional CFO services, Haven manages your financial foundation so you can focus on scaling what matters.

Why Haven Stands Out

• End-to-End Support: Haven doesn’t just record transactions; they handle everything from routine bookkeeping to complex filings and cash-saving tax credits.
• Proven Track Record: Over 400+ startups have trusted Haven to reclaim millions in R&D credits, save hours in admin, and stay on top of every financial deadline.
• 24/7 CPA Access: Real-time support via Slack means no more waiting days for answers. You get expert advice from startup-savvy CPAs who understand your pace and challenges.
• Fractional CFO Insights: Go beyond numbers with strategic guidance from experienced CFOs who help translate your financials into decisions.

Who Is It For?

Haven is ideal for early-stage startups, venture-backed scale-ups, or any business ready to elevate their back-office operations without building an in-house finance team. Whether you're preparing for your next round or just want peace of mind, Haven gives you the structure and expertise to move faster.

Let Your Business Take Flight

Financial clarity is a growth enabler, and Haven makes that clarity accessible. With them managing your financial runway, you’re free to focus on what you do best: building.

Book a call and see why Haven is more than just a bookkeeping service. It’s your partner in financial growth.

2. Bench

Based in Canada, Bench is an excellent option for small businesses seeking assistance with bookkeeping and tax preparation. 

Its professional services include month-end financial reporting, tax advisory, and monthly bookkeeping. With the help of its proprietary software, Bench expertly manages its bookkeeping tasks while providing you with an easy-to-use interface. 

One downside is the potential incompatibility between its accounting software and yours.

3. Paro

The Paro platform connects firms with expert accountants based on their exact requirements. Its pool of talent is US-based and well-versed in all aspects of bookkeeping and accounting.

What makes Paro special is that it accepts only the top 2% of applicants with at least 15 years of experience on its platform. Therefore, you can rest assured that you only have the most qualified individuals at your disposal. Paro’s proprietary AI software is designed to match the right talent with companies faster than traditional recruiting methods.

4. QuickBooks Live

QuickBooks Live is a suitable option for businesses that utilize the QuickBooks ecosystem. The platform is easy to use and highly intuitive. You simply answer a few questions, and then you are connected with a live bookkeeper who can assist you.

The service has been solely designed to cater to the bookkeeping needs of small businesses or start-ups.

5. Bookkeeper360

Bookkeeper360 is an alternative for small businesses with a limited budget who cannot afford to hire an in-house accountant. 

It offers a range of solutions, including: 

• Bookkeeping
• Accurate financial reporting
• Payroll, among others

Its software is compatible with a wide range of bookkeeping programs, providing an excellent way for you to delegate the tedious work to skilled professionals. 

6. Bookkeeper.com

Active in the bookkeeping industry for over 25 years, Bookkeeper.com prides itself on being an all-in-one small business solution. Its financial specialists can assist you with a wide range of financial services. From accounting and bookkeeping to payroll and consulting, everything is delivered online, making it a perfect solution if you work remotely. 

Bookkeeper.com offers fixed-priced services, but you can also opt for custom pricing tailored to your specific needs. 

7. Merritt Bookkeeping

Billed as the easiest bookkeeping service out there, Merritt Bookkeeping caters to businesses with a limited budget. If you are looking for flat-rate pricing that won’t put a strain on your budget, then this outsourcing service may be what you’re looking for.

Bear in mind, though, that Merritt Bookkeeping keeps its price so low because it delivers only basic bookkeeping services, such as:

• Recording financial transactions
• Account reconciliation
• The provision of basic financial information

Since Merritt Bookkeeping has no setup charges or transaction limits, you can give it a try until you need more advanced bookkeeping services. 

8. Pilot

Pilot is an online bookkeeping service specifically designed to cater to the needs of start-ups with high growth potential. You get a dedicated financial expert for book reconciliation, compilation of financial statements, and guidance on financial best practices. You can also opt for a CFO service as an add-on.

Help is also available to set up integrations with: 

• Gusto
• Expensify
• Stripe

All bookkeeping is done using QuickBooks, and support is provided to transition your books to the required platform during the onboarding stage. 

9. Milestone 

Milestone offers customized bookkeeping services for small businesses, setting a high standard for maintaining and organizing financial records that are crucial for tracking revenue and expenses. Their expertise in financial management ensures that entrepreneurs can focus on growth while Milestone manages the intricate details of their financial operations.

They tailor their offerings to meet the specific needs of each business, utilizing best-in-class technology alongside a team of experienced bookkeepers and accountants. This bespoke service, especially their outsourced CFO services and cash flow forecasting, positions Milestone uniquely in the market.

10. Block Advisors

Block Advisors excels in delivering tailored bookkeeping services for small businesses, offering significant savings compared to traditional accountants. Their expertise in providing up to 50% off the typical rates makes them a go-to for small business owners seeking to balance quality with affordability.

The standout feature of Block Advisors is their ability to offer personalized bookkeeping solutions through their dedicated accountant service. This unique offering includes inventory management, expense management, and advanced accounting options, such as accrual-based accounting and sales tax filing, which set them apart from competitors.

11. FinancePal 

FinancePal stands out for its customizable bookkeeping services for small businesses, ensuring that clients receive precisely what they need without overspending. Their expertise in delivering personalized financial solutions makes them a top choice for small businesses across various sectors. They specialize in everything from transaction recording to comprehensive tax prep services.

FinancePal is committed to matching small business financial record-keeping with their specific budgetary constraints, which sets it apart from other solutions. They offer a unique blend of tech innovation and expert human oversight, providing small businesses with the financial clarity and control they need to thrive.

12. Fusion Accountants 

Fusion Accountants stands out for their tailored bookkeeping services for small businesses. They specialize in various bookkeeping services, including statutory and management accounts, payroll, and VAT. Fusion Accountants ensures that small businesses receive the support they need to thrive and succeed.

What distinguishes Fusion Accountants is their award-winning approach to professional bookkeeping for startups. They utilize a few leading online accounting software programs, including Xero, QuickBooks, and FreeAgent. Their team's extensive training and certification by these software partners allows businesses to integrate into their operations the benefit of: 

• Optimized processes
• Efficiency
• Deep insights 

13. Invensis 

Invensis specializes in offering tailored accounting and bookkeeping services for small businesses, ensuring that each client receives personalized attention to meet their unique financial needs. With over 22 years of experience and expertise in handling various industry verticals, Invensis stands out for its ability to overcome the challenges of small business accounting, including: 

• Tax preparation
• Payroll
• Comprehensive financial management

What makes Invensis unique is its adept use of technology to automate business accounting services. They manage standard accounting tasks and implement innovative solutions, such as automatic bill payment systems and strategic planning using key performance indicators.

14. Indinero

Indinero offers a comprehensive suite of financial services, including: 

• Bookkeeping
• Tax services
• CFO advice

It is specifically designed for startups and fast-growing companies seeking scalable financial solutions.

Pros

• End-to-End Financial Services: Offers a complete range of services from basic bookkeeping to strategic financial planning.
• Focus on Growth: Tailored for scaling businesses, providing the tools and advice needed for expansion.
• Custom Financial Solutions: Creates personalized financial plans to meet specific business requirements.
• Integrated Technology Platform: Uses advanced software to streamline financial processes and provide insights.

15. Zeni

Zeni offers an all-in-one financial services platform that includes AI bookkeeping, banking, and dedicated finance team support. Their solution targets funded startups looking for a comprehensive financial stack with real-time reporting and daily book reconciliation. Note that Zeni only works with QuickBooks Online Plus, and you'll need to migrate if you use a different software.

Who is it Best For

Fast-growing startups need support for all of their financial services.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
• Bookkeeping Services List

Choosing The Best Bookkeeping Services For Your Business

Bookkeeping is a foundational business function; done well, it enables growth; done poorly, it puts your operations at risk. While handling accounting in-house might be feasible early on, growing businesses quickly outpace DIY solutions. That’s when outsourcing becomes not just helpful, but essential.

Not all bookkeeping services are equal. Some offer only basic transaction tracking, while others deliver strategic insights that inform decision-making. 

To find the right fit, consider the following key factors:

1. Scope and Flexibility of Services

Choose a provider that meets your current needs and can scale with you. Some services focus solely on data entry, while others offer full-service support, including: 

• Financial reporting
• Tax prep
• Fractional CFO capabilities

2. Industry-Specific Experience

Bookkeeping isn't one-size-fits-all. A service that understands your industry adds real value. For example:

• SaaS businesses need expertise in managing deferred revenue.
• eCommerce companies benefit from support with inventory accounting and multi-channel reconciliations.

3. Data Security and Compliance

Bookkeeping involves handling sensitive financial data. Ensure the provider offers:

• Encrypted communication and secure cloud storage
• Multi-factor authentication
• Compliance with data protection laws (e.g., GDPR)

4. Qualifications and Track Record

Look for certified professionals (e.g., CPA, ACCA, ICAEW) with experience in businesses similar to yours. If you're a startup, prioritise providers who understand early-stage challenges and funding complexities.

5. Technology and Integration

Modern bookkeeping is tech-driven. The right provider should be fluent in your preferred accounting tools (e.g., QuickBooks, Xero) and offer integrations with your existing systems, whether it’s your: 

• CRM
• eCommerce platform
• Payroll software

6. Communication and Support

Transparent communication is crucial. Ask:

• Will you receive regular reports?
• Is there a dedicated account manager?
• What’s the response time on queries?

7. Pricing and Value

While budget is a consideration, avoid selecting a service solely based on price. 

Look for:

• Transparent, predictable pricing
• A structure that aligns with your business stage
• Value beyond basic bookkeeping

The best bookkeeping service isn’t just about balancing numbers. It’s about supporting smarter business decisions. Choose a provider who understands your business, scales with your growth, and acts as a true financial partner.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business
• Best Outsourced Bookkeeping Services

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

The exemplary bookkeeping service is a crucial investment for startups that want to get their financial affairs in order and focus on growth. At Haven, we understand the unique challenges of growing businesses because we have been there ourselves. Our team of CPAs offers 24/7 Slack support to help you with your daily bookkeeping, tax filings, and R&D credits so you can put cash back in your pocket and never miss a filing deadline. 

Join 400+ startups that have saved millions in tax credits and countless hours of administrative work by partnering with Haven. Book a call today to learn more about our fractional CFO services and how we can help your business take flight.

‍

Small business owners often juggle numerous tasks, from managing employees to keeping customers happy. With so much on their plate, it’s easy to see how bookkeeping can fall to the bottom of the to-do list. Yet, accurate financial records are essential to the success of any business. They help you understand your business’s health, make informed decisions, and prepare for tax season. You're not alone if you’re struggling to keep up with your small business’s finances. Many small business owners face similar challenges. The good news is that there are solutions to help you get back on track. This article will explore the benefits of hiring a bookkeeper and how to choose the right accounting services for small businesses to help you achieve your goals.  

Regarding accounting services for small businesses, Haven offers practical solutions to help you manage your finances effectively. Our team of experts can assist you in choosing the right bookkeeping package to meet your unique needs and help you maintain accurate financial records.

What's Included In Bookkeeping Packages For Small Businesses?

When small businesses invest in a bookkeeping package, they get more than just someone balancing the books. 

They’re gaining a system to keep their finances: 

• Organised
• Accurate
• Ready for: 
  
  • Decisions
  • Taxes
  • Investors

Most packages are structured with core services, with optional add-ons to suit your specific needs as your business grows.

What’s Typically Included

At the heart of every good bookkeeping package are a few essential services:

• Monthly reconciliations: Your accounts are reconciled regularly to ensure accuracy and catch errors, including: 
  
  • Bank
  • Credit card
  • Sometimes PayPal or Stripe
• Income and expense tracking: Every pound or dollar coming in and going out is accurately categorized, providing a clear picture of profitability and spending patterns.
• Financial reporting: Monthly or quarterly reports like the profit and loss statement (P&L), balance sheet, and cash flow statement help you monitor your financial health.

These foundational tasks ensure your books are clean, up-to-date, and ready for whatever comes next, whether tax season or a new round of funding.

Optional Add-ons

Depending on your needs, many bookkeeping providers offer additional services that can be bundled into your package or added as you grow:

• Payroll services: Ensuring your team gets paid accurately and on time, including compliance with tax and reporting obligations.
• Invoicing: Creating, sending, and tracking customer invoices, as well as following up on unpaid balances.
• Tax filing: Prepare and file VAT, sales tax, and income tax returns, or provide your accountant with clean books to make this easier.
• Accounts payable/receivable: Managing bills, vendor payments, customer payments, and collections.

These extras are especially valuable if you want to hand off more administrative tasks or reduce the risk of human error as transaction volumes increase.

Common Tools Used

Most small business bookkeeping packages are powered by cloud-based accounting platforms that simplify collaboration and reporting:

• QuickBooks and Xero are industry leaders, recognized for their robust integrations and comprehensive financial reporting tools.
• Wave offers a more lightweight, free option for freelancers or tiny teams.
• FreshBooks combines invoicing with basic bookkeeping and is popular with service-based businesses.

Choosing the Right Bookkeeping System for Your Business Stage

Many bookkeeping services will work within your preferred system, or recommend the best fit based on your needs.

Whether you’re just starting out or managing a growing team, a solid bookkeeping package takes the guesswork out of your finances and frees you up to focus on building your business.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

Cost Breakdown and What to Expect From Bookkeeping Packages

Bookkeeping services aren’t one-size-fits-all. The cost depends on the complexity of your business, the amount of data that needs to be managed, and the level of service you require. Here's how it breaks down.

What Drives the Cost of Bookkeeping Packages

1. Business Complexity and Size

A freelancer or solo consultant will naturally pay less than a retail business with multiple locations, employees, or inventory. More complexity means more time spent: 

• Categorising
• Reconciling
• Reporting

2. Transaction Volume

The more transactions you have each month, the more time a bookkeeper needs to manage your accounts, like:

• Purchases
• Payments
• Payroll
• Sales

A business processing hundreds of sales daily will pay more than one that invoices just a few clients monthly.

3. Industry-Specific Needs

Industries like construction, hospitality, or nonprofits often require specialised bookkeeping methods, such as job costing or donor tracking. These customisations can add to your monthly fees.

4. Reporting Frequency

If you need weekly or detailed monthly financial reports, expect to pay more than if you’re okay with quarterly summaries. More frequent reporting = more bookkeeping time.

5. Software and Tools

Using modern accounting platforms like QuickBooks, Xero, or FreshBooks can streamline work, but software subscriptions may be included in your package or billed separately. These tools often help reduce errors and save time, but factor into pricing.

Common Bookkeeping Fee Structures

• Hourly Rate: Typically ranges from $25 to $100+ per hour, depending on the bookkeeper’s experience and services offered.
• Monthly Retainer: A flat monthly fee for ongoing service. Common for small businesses, this typically ranges from $200 to $2,500/month, depending on complexity.
• Flat Fee: Ideal for specific tasks like end-of-year reporting or tax prep. One-time pricing makes budgeting easier for defined jobs.
• Percentage of Revenue: Some bookkeepers charge 1% to 3% of your revenue, aligning their compensation with your growth. This is more common with virtual CFO or advisory services.

What’s the Average Cost?

Most small businesses spend between $300 and $1,000/month for comprehensive bookkeeping. Simpler businesses can land at the lower end, while those with payroll, inventory, or regulatory needs may pay more.

Match the Package to Your Needs

Don’t pay for services you won’t use, but also don’t skimp on essentials that could cost you in errors or missed opportunities. Whether you hire a freelancer, agency, or cloud bookkeeping service, make sure the scope fits your operations, and revisit it as your business grows.

A good bookkeeper saves you time, keeps your finances compliant, and gives you clarity — and that’s worth investing in.

Why Fast-Growing Startups Trust Haven for Full-Spectrum Financial Support

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

How To Choose The Right Bookkeeping Package

Start by assessing your current financial situation. The right package depends on your business’s current and future position.

Assessing Your Present and Planning for Growth

1. Evaluate Your Current Needs

• Monthly transaction volume: How many transactions do you process?
• Financial complexity: Do you have multiple revenue streams, currencies, or expense categories?
• Industry requirements: Are there specific regulations or reporting needs in your sector?

2. Consider Future Growth

Think about where your business is going:

• Will you be hiring staff?
• Planning to launch a new product or service?
• Entering a new market or region?

What Features Do You Need?

Start with the essentials, then decide what add-ons matter most to you.

1. Must-Have Core Features

• Income and expense tracking
• Bank reconciliations
• Basic monthly or quarterly financial reports

2. Optional Add-Ons (Depending on Your Business)

• Payroll processing
• Tax filing and compliance
• Invoicing and accounts receivable
• Inventory or job costing modules
• Access to financial dashboards or KPIs

Look for a provider that offers modular or customisable packages so you’re not paying for what you don’t use.

Keep an Eye on Your Budget

Bookkeeping should be viewed as an investment in clarity, not just a cost. 

The exemplary service will:

• Save you time
• Improve financial accuracy
• Help you avoid costly compliance mistakes

Seek a solution that balances affordability with expertise and value.

Prioritise Scalability and Flexibility

Avoid rigid, one-size-fits-all packages. Instead, look for:

• Tiered service levels
• À la carte feature options
• Easy upgrades as your business evolves

Your bookkeeping solution should grow with your business, not hold it back.

Don’t Overlook Integration and Support

Smooth integration and solid support are just as important as the service itself.

• Ensure compatibility with tools like QuickBooks, Xero, Wave, or FreshBooks
• Read client reviews for feedback on reliability and responsiveness
• Confirm availability of support (e.g., email, phone, chat)

Talk to Prospective Providers Before You Commit

Schedule a call or consultation. This step can help you:

• Understand what's included in each package
• Ask specific questions about processes, timelines, and responsibilities
• Assess whether the provider is a cultural and operational fit

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
• Bookkeeping Services List

Benefits Of Using Bookkeeping For Your Small Business

Organized Financial Records You Can Trust  

The backbone of any business is its financial data. Understanding your business's economic health is impossible without organized and accurate records. Bookkeeping packages for small businesses help you maintain reliable records of transactions. These records include details about the money coming into your business and going out. 

With precise financial data, you can identify patterns in your business's finances to make informed decisions. For example, you might discover that your business is spending too much money on a particular vendor or that a customer is taking too long to pay their invoices. Armed with this information, you can improve your business's profitability.     

Payroll Accuracy and Compliance  

If you have employees, you know that payroll can be complicated. Deductions must be made from each paycheck, including: 

• Federal and state taxes
• Unemployment insurance
• Workers' compensation, etc. 

Both employers and employees may have benefits that require payroll deductions, such as health insurance and retirement plans. 

Bookkeeping packages for small businesses can help you manage payroll so that nothing slips through the cracks. These solutions allow you accurately calculate payroll and automate the process of making deductions. They also help you maintain records of payroll transactions in case of an audit or if an employee has a question about their pay.    

Budgeting with Confidence  

Accurate financial data is critical to creating a reliable budget. Bookkeeping packages for small businesses help you maintain precise financial records so that when it’s time to create a budget, you can do so confidently. Your budget will be based on real numbers that reflect your business's past performance. As a result, you can make more accurate predictions about your future financial health and identify areas where you can improve.     

Mastering Cash Flow  

Cash flow is the lifeblood of any business. Without positive cash flow, your business will fail. Bookkeeping packages for small businesses help you keep a close eye on your cash flow by maintaining accurate records of your financial transactions. 

With a clear understanding of your business's cash flow, you can identify any issues before they become critical. For example, you might discover that your business has too many outstanding invoices. Armed with this knowledge, you can improve your cash flow by offering discounts to customers who pay their invoices quickly.     

Tax Season Ready  

Tax season is stressful for any business owner. The last thing you want to worry about is whether your financial records are in order. Bookkeeping packages for small businesses help you maintain organized and accurate financial records throughout the year. When tax season arrives, you can provide your accountant with all the information they need to prepare your tax returns.     

Audit Peace of Mind  

No business wants to be audited by the IRS. If you are audited, having accurate and organized financial records can help put your mind at ease. Bookkeeping packages for small businesses help you maintain detailed records of your financial transactions. If the IRS comes knocking, you can provide them with the documentation they need to verify your tax returns and hopefully get you through the audit with minimal stress.     

Setting and Reaching Business Goals  

How can you set goals for your business if you don’t know where you stand financially? Bookkeeping packages for small businesses help you maintain accurate financial records so that you can assess your business's economic health. With this information, you can set realistic goals for your business and create a plan to achieve them.  

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Bookkeeping Services for Startups
• Best Outsourced Bookkeeping Services
• Hiring a Bookkeeper for a Small Business
• Best Accountant for Small Business
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Organizing Small Business Bookkeeping

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Let your business soar while Haven keeps your financial runway smooth. We were created by founders who understand the unique challenges of running a small business and the importance of having accurate financials to help you make informed decisions. 

Our dedicated team handles everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket. We also offer fractional CFO services to help you with financial strategy as you grow. Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who get the unique challenges of growing businesses. 

Book a call today and discover how our dedicated team can help you focus on building rather than bookkeeping.

‍

Imagine you’ve just launched your startup, and business is booming! But along with the excitement of your new venture comes a slew of financial responsibilities. You are drowning in receipts, invoices, and tax documents. It’s not long before you forget about running your business and spend all your time crunching numbers. If this sounds like a scenario you want to avoid, you're not alone. Managing your startup’s finances can be overwhelming. Hiring a bookkeeper can help you get organized and ease your stress. This article will discuss the benefits of hiring a bookkeeper for startups and outline why bookkeeping services are critical for startups. We’ll also cover the best times to hire so you can get the help you need as you grow.

Haven’s accounting services for small businesses can help you stay financially organized so you can focus on your growing startup. Our dedicated team can assist you with everything from setup to ongoing support as your business scales. 

Why are Bookkeeping Services Critical for Startups?

Bookkeeping services are critical for startups because they provide the financial clarity and discipline necessary to survive and thrive in a high-risk, fast-paced environment. While many entrepreneurs initially attempt to manage their books, around 64% of business owners do it’s often a short-term solution that can hinder long-term success. 

Bookkeeping: The Financial Foundation Startups Need to Thrive

Startups struggle to survive. 90% of new ventures fail because they run out of cash. A bookkeeping service helps startups avoid this fate by establishing a strong financial foundation. At its core, bookkeeping is about recording, categorizing, and reconciling every financial transaction. For startups, these records are the bedrock of wise decision-making. Without accurate books, a founder cannot realistically forecast cash flow, measure runway, or assess burn rate, which are critical metrics determining whether the business can scale or survive.

Bookkeeping Services for Startups Help You Manage Rapid Growth

Startups often proliferate, attract multiple funding rounds, and experiment with different revenue models, all of which complicate financial management. Unlike traditional small businesses with predictable income streams, startups might deal with investor equity, SAFE notes, convertible debt, or grants. 

A standard bookkeeping approach simply won’t suffice. Bookkeepers must understand the nuances of startup finance and be agile enough to adapt to changes as the business evolves. 

Professional Bookkeeping Enables Startups to Attract Investors

Professional bookkeeping allows startups to create clear, reliable financial statements, income statements, balance sheets, and cash flow reports, which are essential when pitching to investors, applying for grants, or preparing for due diligence. 

A messy ledger or incomplete documentation can be a red flag to potential backers. By contrast, strong books show financial maturity and strategic foresight. 

Ensure Compliance and Reduce Risk with Bookkeeping Services for Startups

Startups, especially those operating in multiple jurisdictions or industries, face a variety of tax and regulatory obligations. A skilled bookkeeper helps ensure compliance with VAT, payroll reporting, expense categorization, and statutory filings. This reduces the risk of penalties and legal issues, which are critical for a company still establishing its reputation. 

Bookkeeping Services Free Founders to Focus on Growing Their Business

While it may seem cost-effective for founders to manage their books, doing so often distracts from core business activities. As a startup grows, the opportunity cost of handling bookkeeping in-house becomes too high. Outsourcing or hiring a dedicated bookkeeper allows the founding team to focus on innovation, product-market fit, and customer growth. 

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

When to Hire Bookkeeping Services for a Startup

You'll need to relinquish control of your company's finances at some point! That way, you can spend time on activities that prepare your business for future growth, like new products and services or marketing plans. There are several signs to look for when it's time to hire a bookkeeper. 

Increase in Revenue and Sales

If you've noted an increase in revenue and sales, it's likely time to hire a bookkeeper. You have 

more products to sell and need to keep your accounting records up-to-date while you hustle to grow the business. They'll record each transaction promptly, so you can see which products or services bring in the most money. 

More Complex Financial Transactions 

Your business likely started with startup funding and minimal transactions. As my startup matured, hiring employees or purchasing equipment increased the complexity of recording my growing transactions. A bookkeeper can ensure they record complicated transactions per accounting standards like GAAP or IFRS in a timely fashion. 

Need for Accurate Financial Reporting

You should ensure accurate financial reporting, beginning from day one of your business. However, accuracy will become even more crucial when you seek external financing. Any investor or bank will take a fine-tooth comb to your finances before providing any funding, and someone dedicated to managing your books helps guarantee that your financials are on point. 

Difficulty Keeping Up with Bookkeeping Tasks

You may have enough time to manage your bookkeeping in the early days of operation. However, success can quickly alter your situation, and you may have less free time, putting off accounting activities. A qualified bookkeeper manages your finances, saving you time and resources while you do things only you can do for your business. 

Compliance and Legal Requirements

Startup founders with no legal or accounting background may be unfamiliar with compliance requirements like quarterly taxes and payroll filings. A qualified bookkeeper can assess your company's financials and determine what compliance activities are necessary. Staying compliant in financial activities is crucial to prevent unnecessary fines or penalties. 

Haven Handles Your Financial Runway

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Savings, Efficiency, and Expert Support

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
• Bookkeeping Services List

What to Consider When Hiring Bookkeeping Services for Startups

Understand exactly what a potential bookkeeping provider offers. Some firms may stick to basic transaction entry and reconciliation, while others include:

• VAT filing
• Cash flow forecasting
• Payroll
• Financial reporting
• And even CFO-level insights. 

A startup’s needs can change rapidly, so choosing a partner whose services can grow with your business is wise. Look for flexibility and range. 

Customization and Industry Fit: Don’t Get a One-Size-Fits-All Bookkeeper  

No two startups are the same. Whether you’re a SaaS company dealing with deferred revenue or an e-commerce business with inventory accounting, your financial needs will be unique. 

Ask whether the bookkeeper can tailor their approach to your model. Those with startup or industry-specific experience are often more effective because they understand your business's quirks, tax treatments, and regulatory hurdles.

Security of Financial Data: Protect Your Sensitive Information  

Bookkeeping involves access to sensitive financial information, so security is non-negotiable. Confirm that your chosen provider uses encrypted communications, multi-factor authentication, and secure cloud storage. Compliance with data protection laws such as GDPR (if applicable) should also be a part of their protocol.

Experience and Qualifications: Who Will Be Handling Your Books?  

Don’t hesitate to probe into the team's qualifications and background. 

• Are they certified (e.g., ACCA, CPA, ICAEW)? 
• Do they have experience with startups at your stage, pre-revenue, seed-funded, or scaling?

A bookkeeper with relevant expertise can offer accuracy and insights that help shape financial strategy.

Software and Tech Compatibility: Look for a Tech-Savvy Bookkeeper  

Tech-savvy bookkeeping firms can streamline operations using tools like:

• Xero
• QuickBooks
• Zoho Books

But beyond that, ask whether the tools they use are compatible with your existing tech stack, especially if you use platforms like:

• Stripe
• Shopify
• Payroll software

Efficient integration reduces errors, increases visibility, and supports real-time decision-making.

Transparency and Communication: A Clear Line of Sight  

Outsourcing doesn’t mean disconnecting. You need a bookkeeper who offers transparent processes, shares reports regularly, and maintains open lines of communication. 

• Will you have a dedicated account manager? 
• How often will they review your books with you? 
• Clear reporting schedules and accountability checkpoints are essential.

Pricing and Value for Money: Understand How Fees are Structured  

Understand how fees are structured hourly, fixed monthly retainer, or service-based tiers. Beware of providers who charge low up front but bill heavily for add-ons. Look for clarity, predictability, and a pricing structure that reflects their value without putting pressure on your cash flow.

5 Helpful Bookkeeping Tools For Startups

1. Haven: A Comprehensive Solution for Startups  

Haven is a bookkeeping tool specifically designed for the needs of startups. It understands the unique challenges of financial operations in a startup environment and helps founders manage the pressure of their financial responsibilities so they can focus on growing their business. Haven’s all-in-one solution offers day-to-day bookkeeping services and advanced features like:

• Tax filings
• R&D tax credit claims
• Fractional CFO services

This eliminates the need for multiple vendors and helps startups gain better control of their financial operations. The platform’s founder-focused design allows it to tailor its service to meet the evolving needs of startups as they navigate funding rounds, make rapid headcount changes, and deal with cash flow constraints. 

One of its most impressive features is 24/7 CPA support via Slack. This gives startup teams immediate access to qualified financial experts who understand startup finances and can help with urgent issues like investor inquiries or last-minute tax questions. Overall, Haven helps startups regain control of their time by managing the bookkeeping process so they can focus on business growth. 

2. Xero: Cloud-Based Accounting for Small Businesses  

Xero is a cloud-based accounting system for small and growing businesses. It offers a user-friendly interface for connecting with trusted advisers and gaining visibility into financial health from any device. Xero’s advanced features help you track cash flow, transactions, and other key economic data. 

3. QuickBooks Online: The Industry Standard  

QuickBooks Online by Intuit is one of the most widely used accounting solutions for small businesses. It helps you track income and expenses while managing receipts and invoices. 

The software shows all your costs, like inventory and maintenance, alongside your sales over time. QuickBooks Online also automatically updates your sales and inventory costs using perpetual inventory tracking. 

4. Wave: Free, User-Friendly Software for Small Businesses  

Wave is a web-based accounting solution built for small businesses. It offers free accounting and receipt scanning features to help you manage your books without breaking the bank. 

You can link your bank accounts, PayPal accounts, and other data sources to see real-time transactions. The platform generates essential reports, including accounts receivable, balance sheets, profit and loss statements, and sales tax reports. 

5. FreshBooks: A User-Friendly Invoicing Software  

FreshBooks is cloud-based accounting and invoice management software for small businesses that handles expense management, core accounting, and basic bookkeeping. The platform is easy to use, making it ideal for business owners who want to organize their finances without the steep learning curve. FreshBooks also offers straightforward pricing, customizable invoices, and detailed self-service support to help you navigate any questions.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Best Outsourced Bookkeeping Services
• Hiring a Bookkeeper for a Small Business
• Best Accountant for Small Business
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Organizing Small Business Bookkeeping

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Savings, Efficiency, and Expert Support

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

‍

As your business grows, so do the numbers. You may be drowning in financial paperwork, tax forms, and reports. Your day-to-day operations may suffer as you struggle to prioritize your business’s accounting tasks. Benefits of Hiring a bookkeeper is it can ease your burden and restore balance to your business. Yet, if you don’t have the resources to bring someone on full-time, you may want to explore the benefits of outsourcing. This article will discuss the pros and cons of outsourcing accounting services to help you determine if this is the right choice for you.  

At Haven, we offer accounting services for small businesses to help you achieve your goals. For example, we can help you learn about the pros and cons of outsourcing accounting services. Our team can take on time-consuming accounting tasks so you can focus on running your business.

What are the Pros of Outsourcing Accounting Services?

When you outsource your accounting, you won’t have to hire or train an in-house accounting team. You’ll also avoid the costs of purchasing and maintaining accounting software and hardware. 

If you’re a small business with limited resources, these expenses can add up quickly. Outsourcing allows you to pay for only the services you need. You can reduce your costs significantly and use those extra funds to finance other business areas. 

Gain Access to Financial Experts

When you don’t have an accounting team, you can manage your finances independently. This often leads to costly mistakes and errors that can hurt your bottom line. 

However, when you work with an outsourced accounting provider, you gain immediate access to a team of financial experts. They can provide valuable insights and guidance and ensure your financials are in order so that you can make smart decisions for your business moving forward. 

Enjoy Scalability When You Outsource Your Accounting

As your business grows, your accounting needs will change. If you have an in-house team, you’ll likely have to spend time and money hiring additional staff to manage the extra workload. 

You may even need to let some of these employees go during slow periods, which can be complex. Outsourcing your accounting provides the scalability you need to manage your finances effectively without the headache of hiring and firing. 

Outsourcing Accounting Saves Time

Managing your accounting can be time-consuming. It can remove your management team from more critical tasks that help your business grow. 

When you outsource your accounting, you free up time for your in-house team to focus on core business operations. This includes improving your products or services, implementing customer feedback, and finding new clients. 

Get Improved Financial Reporting

Outsourced accounting teams often provide more robust reporting and analysis tools than your in-house team may have access to. Outsourcing gives you access to real-time data and insights that can help you manage your business more effectively. 

Professional accounting firms usually have strict controls and procedures to ensure accurate financial reporting and regulatory compliance. You’re, therefore, likely in financial trouble. 

Enjoy Enhanced Data Security

In the digital age, data security is paramount, especially when it concerns your business’s sensitive financial information. In 2023, the average cost of a data breach in the financial sector was $5.9 million. 

Outsourced accounting firms recognize the gravity of protecting your data and employ the best cybersecurity technology and protocols to safeguard it. By adhering to stringent data protection standards and regulations like GDPR, these firms ensure your financial records stay secure. 

Gain Access to Advanced Accounting Tools and Technology

The financial world constantly evolves, and staying ahead of the curve requires the latest accounting tools and technologies. Despite this, 56% of accountants still rely on legacy systems to handle accounting processes. 

Outsourced accounting firms have access to advanced financial software that can significantly enhance the efficiency and accuracy of these processes. These state-of-the-art systems often feature real-time reporting and dashboard capabilities, providing clearer financial insights and better oversight of your business’s economic health. 

Outsourcing Accounting Reduces the Risk of Fraud

The potential for fraud can threaten any financial operation, with corporate fraud destroying an estimated 1.6% of equity value each year. However, outsourcing accounting services can significantly reduce this risk. 

With a team of professionals overseeing your financial data, it’s easier to establish secure internal controls and minimize errors and fraudulent activities. Outsourced accounting providers use advanced systems with built-in checks and balances, providing an additional layer of security against fraud. 

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

What are the Cons of Outsourcing Accounting Services

When you outsource accounting, you hand over the operations to a team outside your company. That means you lose control over this critical business function. While you can communicate with the team and request updates, you rely fundamentally on their processes and timelines. 

Before you begin the contract period, establish a few ground rules and ensure the modes and frequency of communication. For example, you can have weekly meetings and calls to gather updates. 

Hidden Costs of Outsourced Accounting Services 

Accounting outsourcing companies charge you based on the accounting positions and the number of professionals you require. However, a hefty invoice with hidden charges from the agency can shock you because hidden charges might not be discussed or neglected when you sign the contract. 

Some standard costs charged for providing business accounting services are disengagement cost, overhead multiplier cost, hiring costs, and others, depending on where the firm is located. Never skip pages while signing the contract; read it thoroughly to understand the hidden clauses. 

Delay in Communication: Outsourcing Accounting Services 

Communication and work delays can be expected while working with an outsourced accounting agency. Communication delays are not typical for all agencies, but it’s very natural for messages to get lost or ignored, causing a delay. 

While there are options to contact them, like phone calls, messages, and emails, delays in communication due to procrastination or other factors will be there. 

Haven Handles Your Financial Runway

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Savings, Efficiency, and Expert Support

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
• Bookkeeping Services List

Choosing The Best Outsourced Accounting Service

Not all accounting services are equal. A provider with experience in your industry is far more likely to understand the nuances that affect your financial reporting, tax obligations, and compliance requirements. 

Whether in retail, professional services, manufacturing, or technology, an industry-savvy firm can offer guidance tailored to your business context and avoid costly mistakes that stem from generic, one-size-fits-all approaches. 

Prioritise Communication and Responsiveness: The Clock is Ticking 

Financial matters often require quick decisions. Whether you need to make a last-minute reporting request or inquire about regulatory changes, your outsourced partner should be responsive and easily reachable. 

Time zone differences shouldn't prevent you from getting the answers you need when you need them. Ensure the provider offers timely, proactive communication and is committed to building a working relationship, not just delivering a service. 

Look for a Proven Track Record: Reputation Counts

Reputation counts in financial services. Before hiring a firm, research its background. Look for client testimonials, industry references, and independent reviews. A reputable accounting provider should be transparent about their client experience and ideally have a history of successful long-term relationships with businesses similar to yours. 

Understand Their Approach to Data Security and Compliance: Protect Your Sensitive Information 

Financial data is highly sensitive, and protecting it should be a non-negotiable part of any outsourced relationship. Choose a provider that complies with data protection regulations relevant to your region, such as the General Data Protection Regulation (GDPR). 

Beyond compliance, the firm should implement robust internal measures, such as encryption, controlled access, firewalls, and data backups, to protect your financial information from breaches or data loss. 

Build the Relationship for Long-Term Success: Set Clear Expectations from Day One 

Once you’ve selected a provider, setting the groundwork for collaboration is essential. Define clear goals, expectations, and responsibilities from the outset. Establish how often you’ll communicate, what will be discussed in regular check-ins, and who will be your primary point of contact.

Regular meetings focused on financial reporting, compliance issues, and key business metrics can help you maximize your outsourced relationship and ensure that your accounting partner remains aligned with your business objectives. Outsourcing your accounting is more than a cost-saving move; it’s a strategic decision. The right partner will not only take care of the numbers but also help you make better business decisions with confidence.

Related Reading

• Best Outsourced Bookkeeping Services
• Hiring a Bookkeeper for a Small Business
• Best Accountant for Small Business
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Organizing Small Business Bookkeeping

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Savings, Efficiency, and Expert Support

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Sorting through piles of receipts, invoices, and statements is not most business owners' idea of a good time. But for many, running a small business is an unfortunate reality. The good news is there’s a way to make this task a lot easier: hiring a bookkeeper. When you look at a bookkeeping services list, you’ll see many options to customise your financial organisation to fit your needs. This article will explore what a bookkeeper does, the benefits of hiring a bookkeeper for your small business, and what to expect from a bookkeeping services list.

Haven’s accounting services for small businesses can help you get organised, ease your stress, and foster your company’s growth.

Bookkeeping Services List: What To Expect From A Bookkeeping Service

Bookkeeping services centre on day-to-day financial management. These include:

• Recording transactions
• Managing your general ledger
• Fulfilling tax and regulatory requirements

By keeping your financial data organised and error-free, bookkeepers save you time and relieve your stress. This bookkeeper services list includes everything you need to help your business thrive.

Recording Financial Transactions

Recording financial transactions is the most basic bookkeeping task. When you receive payments or make purchases, a bookkeeper categorises those transactions to ensure your financial records are accurate. 

This process can take a lot of time, especially if you aren’t using accounting software. Bookkeepers update their financial records regularly to ensure they’re always accurate.

Bank and Credit Card Reconciliation

Reconciliation is akin to playing a matching card game for businesses. It’s matching the income and expenses on your bank statements to the records in your accounting software. Over time, discrepancies can occur. For instance, a customer may return a product, and you issue a refund. 

While your accounting software records this transaction, it can take time for the bank to reflect this change on your bank statement. A bookkeeper will help you catch any discrepancies immediately, enabling a fast resolution and preventing additional errors.

Managing Accounts Payable and Receivable 

Everybody loves payday. And everybody hates it when payday comes late. Your bookkeeper manages accounts payable (AP) to ensure vendor bills are paid on time, and they monitor accounts receivable (AR) to ensure your clients pay your invoices punctually. This way, bookkeepers improve vendor relationships and keep your business profitable.

Payroll Processing 

When you hire employees, you must do more than just pay them. In addition to calculating wages, you’re also responsible for crunching the numbers for deductions and taxes. Bookkeepers take this work off your plate by processing payroll. They also ensure you comply with employment laws. 

Financial Reporting 

Financial reports involve more than basic Excel spreadsheets. Bookkeepers prepare profit and loss (P&L) statements, balance sheets, and cash flow statements. These records are essential for financial planning and forecasting and serve as the basis for monthly and quarterly financial analyses. 

By enabling regular reviews, bookkeepers help with the strategic decision-making that grows your business. 

Tax Preparation and Filing Support 

Bookkeepers don’t file your taxes (that’s an accountant’s domain). But they organise your tax documents, protecting you from panicked scrambling every April. They make sure your accountant has all the info they need to file your return accurately, leverage tax breaks, and keep the IRS happy.

Expense and Budget Management 

Hosting your website on a particular domain, providing employees with Microsoft Office, and housing your customer relationship management (CRM) with a specific provider. All these tools cost money, and the expenses can add up quickly. Bookkeepers track all operational costs so you know exactly where your money is going and when. 

This ensures you can follow your financial plan, manage your budget, adjust when needed, and plan for the future. 

Inventory and Asset Management 

In addition to managing daily tasks, bookkeepers can monitor your stock levels and fixed assets. They track asset depreciation and amortisation to calculate their value and associated costs. 

Keep an Eye on Cash Flow 

A bookkeeper's most essential task for a small business is ensuring it doesn’t run out of money daily. They can do this by monitoring the balance of revenues to expenses and offering more advice if the business needs more cash to operate.

Preparing the Books For an Accountant 

A bookkeeper must ensure the accounts are valid and up-to-date when the accountant needs them. This lets accountants use their knowledge to make business recommendations and complete tax returns.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

Benefits of Bookkeeping for Your Startup

Cash flow problems contribute to 82% of failures among startups. The most common culprit is startup founders not having real-time visibility into their cash flows and burn rates. Whether pre-seed or going for Series A, your financial data tells the story investors want to hear — and basic spreadsheets just won't cut it anymore. 

Help Startups Prepare for Investment

Bookkeeping solutions do much more than track debits and credits. Depending on the solution, they can automate day-to-day bookkeeping tasks, provide real-time insights, and scale with your business. But with so many options available, choosing exemplary service can feel like navigating a maze. 

Clean Books Impress Investors and Help Startups Make Data-Driven Decisions

Clean books aren't just about impressing investors (though that matters). Keeping your financial records accurate, organised, and up-to-date helps you make data-driven decisions to set your startup on a winning path. When you know exactly where every dollar comes from and goes to, you can optimise your burn rate. 

In other words, see precisely how quickly you're spending money and where cuts could be made.

Help Startups Monitor Growth Metrics

Detailed financial data lets you see which products or services make you money and earmark those as your profit centres. You can also spot potential cash flow issues before they become crises. Bookkeeping services do the heavy lifting by:

• Automatically tracking and categorising transactions
• Reconciling accounts daily
• Generating real-time financial reports 

Optimising Your Startup's Financial Runway

This means you'll always know how long your startup’s runway is and the actual profit or loss on each sale or service (called unit economics). For instance, if you run a project management software and have just signed two big enterprise clients, those contracts might extend your runway significantly.

Ease Tax Season Stress

When tax season rolls around, you won't be scrambling to piece together a year's worth of transactions because they’re already appropriately recorded: You have accurate profit and loss statements ready. All deductible expenses are properly categorised. Payroll taxes are correctly calculated and paid. 

Bank statements, receipts, and other business activity documents are organised and accessible. 

Haven Handles Your Financial Runway

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Savings, Efficiency, and Expert Support

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business

Do You Need Bookkeeping Services Or Accounting Services?

Does My Business Need Bookkeeping or Accounting Services?
While bookkeeping and accounting are essential to business health, they’re different. Bookkeeping focuses on recording daily financial transactions, while accounting analyzes that information to help businesses make informed financial decisions.  

In the early stages of a business, bookkeeping is the more immediate need. 

Why Bookkeeping Matters First

Bookkeepers manage your day-to-day financial activity. That includes: 

• Recording income and expenses
• Reconciling bank accounts
• Tracking invoices and payments
• Organising receipts and financial data
  
  

Without consistent bookkeeping, monitoring cash flow, keeping up with taxes, or understanding whether your business is profitable is nearly impossible. If you’re flying blind on your finances, you’ll struggle to make informed decisions. 

What Accountants Bring to the Table

Accountants take the financial data prepared by bookkeepers and: 

• Generate financial statements
• Handle tax planning and filing
• Advise on compliance and regulations
• Provide financial analysis and strategic insights 
  
  

While bookkeepers focus on accuracy and maintenance, accountants interpret the numbers and help you understand what they mean for the future of your business. 

Should You Choose One or Both?

In reality, you need both, just not always simultaneously. Bookkeeping ensures your financial records are in good order. Accounting helps you use those records to plan, grow, and stay compliant.

Many startups begin with a bookkeeper and bring in an accountant as the business becomes more complex. However, outsourcing to a firm that provides both services can streamline operations, reduce costs, and improve accuracy across the board.

How Haven Helps

Haven offers an integrated financial solution built specifically for startups. Haven covers everything, whether you need help with daily bookkeeping, complex tax filings, R&D tax credits, or even fractional CFO support. 

CPA-Led Support

With 24/7 Slack access to qualified CPAs, over 400 startups trust Haven to keep their finances on track, eliminate admin stress, and unlock savings, without ever missing a deadline.

Let Haven manage your financial runway, so you can focus on scaling your business. Book a call to see how the team can support your growth.

What to Look for in a Bookkeeping Service

Selecting the right bookkeeper or bookkeeping service for a start-up is a decision that should not be taken lightly. An ideal bookkeeper does more than crunch numbers; they align with your

start-up’s:

• Mission
• Values
• Fast-paced environment

From technical expertise to ethical integrity, the right candidate brings skills and a mindset that complement your business growth. 

Technical Competency: The Foundation of Accurate Bookkeeping

A professional bookkeeper must grasp accounting principles, financial regulations, and the tools of the trade. Proficiency in accounting software such as Xero, QuickBooks, or Zoho Books is essential, along with the ability to interpret financial statements accurately. This foundation ensures reliable financial records and compliance from day one.

Attention to Detail: An Uncompromising Quality

Start-ups cannot afford financial inaccuracies. A bookkeeper must meticulously document, categorise, and manage financial data. Minor errors in data entry or reconciliation can significantly affect tax reporting, investor relations, or strategic decisions.

Adaptability and Flexibility: Necessary Skills for a Changing Environment

Start-up environments are fluid, with shifting priorities and constant evolution. A skilled bookkeeper should demonstrate adaptability, be willing to adjust to new systems, regulatory changes, and emerging business needs. They must proactively find solutions rather than rely solely on standard processes.

Time Management: Meeting Deadlines in Bookkeeping

Meeting deadlines is non-negotiable in bookkeeping. A professional must consistently deliver:

• Financial reports
• Payroll
• Tax submissions
• Timely reconciliations

Good time management also supports business efficiency by ensuring decision-makers have up-to-date financial data.

Communication Abilities: The Key to Financial Clarity

Financial clarity is crucial. A great bookkeeper must be able to translate complex financial concepts into simple, actionable insights for founders, team members, and external partners. Clear communication is part of the job, whether it’s explaining cash flow trends or preparing reports for investors.

High Ethical Standards: Trustworthiness Above All Else

Trustworthiness is a cornerstone of the bookkeeper’s role. Handling sensitive financial data requires unwavering integrity. They must ensure confidentiality, uphold regulatory compliance, and act with moral responsibility—especially critical for start-ups dealing with early-stage funding, payroll, and regulatory obligations.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

You can focus on building your business while we manage your financial runway. Founded by entrepreneurs for entrepreneurs, Haven supports startups with a comprehensive range of bookkeeping services. We handle everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket and fractional CFO services. 

Book a call today and discover how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Organizing Small Business Bookkeeping
• Best Accountant for Small Business
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Best Bookkeeping Services
• Best Outsourced Bookkeeping Services

‍

Running a small business is difficult, especially when managing your financials. You can handle your bookkeeping in the early stages, but the benefits of hiring a bookkeeper become clear as your business grows. Not only will this help you get organized, but it will also save you time and reduce stress. In this article, we’ll explore the benefits of hiring a bookkeeper for a small business and offer tips on how to find the right one for your company.  

If you’re ready to get your small business financials in order, Haven can help. Our accounting services for small businesses can help you manage your books and get organized so you can focus on growing your business.

When Should You Hire A Bookkeeper For A Small Business

39% of small business owners work over 60 hours per week. That’s a lot of time. And if you’re like most folks, you’re probably not tracking your time to see how much you spend on bookkeeping. Discover that your time is worth more than you think. You’re not here to scare you into hiring a bookkeeper. 

But do you seriously want to consider how much your time is worth? If you’re spending tons of time on bookkeeping, it’s probably hurting your business. You’re either overworked and heading for burnout, or your company suffers because you’re not focusing on the right things. 

Calculating the True Cost of DIY Bookkeeping

It’s time to get out of bookkeeping hell. Start by tracking how much time you spend per week on bookkeeping. Then, using an online calculator, determine how much your time is worth and how much you spend on bookkeeping per month. 

Compare your salary as your bookkeeper against the price of professional bookkeeping. Once you treat the time you spend on bookkeeping as an actual expense in cash, you’ll have a better idea of whether you should keep doing it.

Benefits of Hiring a Bookkeeper for a Small Business

When you hire a bookkeeper, you’re investing in the accuracy of your business’s economic data. A bookkeeper tracks your financial transactions, posting them to the appropriate accounts to keep your records current. 

This meticulous process ensures clear visibility into your business’s financial health. If you’re facing a tax audit or a business valuation, your organized records will make the process much easier. A bookkeeper also prepares your financial statements so you can focus on running your business.  

Compliance With The ATO: A Stress Reliever for Business Owners  

A bookkeeper helps ensure your business complies with ATO regulations. They manage payroll, superannuation, business activity statements (BAS), and other tax-related responsibilities. 

If there’s ever a question from the ATO, your bookkeeper will have the answers. They also help you identify opportunities to reduce your tax burden, such as potential deductions and credits for your industry and business structure.  

Reducing Business Costs: Finding Savings You May Overlook  

A bookkeeper analyzes your financial data to help identify where you can cut costs. They look for trends in your business’s spending and may uncover unexpected expenses. 

For example, your bookkeeper may find you’re consistently overpaying on a utility bill or subscription service. They’ll bring these findings to your attention so you can make informed decisions to improve profitability.  

Bookkeepers And Your Accounting Software: An Efficient Partnership

When you hire a bookkeeper, they typically work with your accounting software. This allows them to manage your financial data more efficiently and accurately. 

Your bookkeeper will enter data into your software, ensuring it’s timely and correct. They’ll also use the software to generate reports, which provide insights into your business’s financial health. These reports can be customized to focus on areas you want to improve.  

Invoicing  

Your bookkeeper will track and record all your invoices and receipts, including accounts receivable and payable. They’ll ensure your data is entered correctly in your accounting software and follow up on any outstanding payments.  

Data entry

Your bookkeeper will enter data into your accounting software to ensure timeliness and accuracy.  

Expenses  

A bookkeeper can manage all your business expenses, prepare you for tax deduction claims, and record receipts properly.  

Payroll

Your bookkeeper will manage your payroll processes and ensure accuracy and timeliness as well as ATO compliance and super concerns.  

Banking

Most accounting solutions have direct bank feed functionality. Your bookkeeper can manage these directly within your solution by downloading banking information and reconciling accounts.  

Reporting  

A good bookkeeper will also use your accounting software to provide regular reporting. This includes cash flow, budgets, balance sheets, and profit and loss. The business owner then uses these to make better financial decisions and clarify their position.  

Haven: Comprehensive Financial Management for Startups

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

Steps to Hiring a Bookkeeper for a Small Business

Before looking for a bookkeeper, clarify what you need help with.

• Are you seeking someone to handle basic tasks like transaction tracking and bank reconciliations? 
• Do you need more advanced support with payroll, tax compliance, and financial forecasting? 

Knowing your needs will help you find the right person with the appropriate skills and experience. It will also help you determine whether you need a part-time bookkeeper, a full-time hire, or someone with specialised expertise. 

Your Hiring Options 

Once you know what you’re looking for, weigh your options for bringing on a bookkeeper. You can hire someone in-house, work with a freelance bookkeeper, or use a virtual bookkeeping service. Each comes with its pros and cons. An in-house bookkeeper offers direct oversight and can fit businesses with complex needs well. 

However, this option can be costly and less flexible. A freelance bookkeeper is typically more affordable and offers flexibility. However, they may lack capacity or support during busy periods. A virtual bookkeeping service combines the best of both worlds. These tech-enabled services are scalable and often provide a whole team for the price of one hire. 

For Industry Experience and Credentials 

Find a bookkeeper with experience in your industry or an understanding of your business model. This is especially important for startups and SaaS businesses, where accounting practices can differ. 

Credentials matter, too. Look for someone with an accounting degree, QuickBooks certification, or relevant tax expertise. 

For Tech Compatibility 

Your bookkeeper should be comfortable using the accounting software your business relies on. Whether that’s:

• QuickBooks
• Xero
• Gusto

A customized solution, find someone who can seamlessly integrate into your system. 

Communication and Responsiveness 

Accuracy is a given when it comes to bookkeeping. But good bookkeeping also means good communication. Your bookkeeper should be easy to reach and willing to explain things clearly. This is especially important during tax season or when you have urgent questions about financial reports. 

Trial Period or Project Engagement 

If you’re unsure about committing long-term, consider starting with a trial period or project-based engagement. This gives you time to assess working style, accuracy, and responsiveness without entering a contract.

Pricing and Service Scope 

Before deciding, understand what’s included in the service. Some bookkeepers charge hourly rates; others work on flat monthly fees. Clarify what services are covered and whether extra charges for support or add-ons exist.

Should You Hire a Bookkeeper or Do it Yourself?

If you’re a small business owner, you likely started your business to do something you love. You also probably don't have a dedicated bookkeeping team. Taking on bookkeeping yourself can help you save money in the short term, but the task will consume valuable time you could use to run your business. 

And the more your business grows, the more complex your bookkeeping will become, making the task even more daunting. Hiring a professional bookkeeper will free up your time so you can focus on what you do best.  

Bookkeeping Gets Overwhelming Fast  

Even if you have a basic understanding of bookkeeping, keeping track of all your financial transactions will become increasingly complex as your business grows. Without proper and timely bookkeeping, transactions can pile up and go unrecorded until the end of a financial period. 

There’s also the risk of making costly mistakes and losing or forgetting key details. A professional bookkeeper will help you stay organized and keep your business audit-ready.  

You’re Not a Numbers Person  

Small business owners are often jacks or jills of all trades. But, rarely, they’re also trained bookkeepers. Taking on the role of DIY bookkeeper means having to track and understand debits and credits, inventory costs and business expenses, invoices, payroll, tax returns, budgets, and how to do double-entry bookkeeping. 

The knowledge and commitment required to manage tasks like these can overwhelm even the most enthusiastic entrepreneur. Professional bookkeepers are trained or educated to handle all your high-level financial details. They can even help you interpret your numbers.  

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
  
• Bookkeeping Services List

5 Best Practices for Hiring a Bookkeeper for a Small Business

1. Hire a Person Who Understands Your Business

Bookkeepers can either save your business or cause costly errors. If you want to hire a bookkeeper for your small business, the person must have experience with companies like yours. Knowledgeable bookkeepers will help you create a financial strategy and ensure accurate records. 

They’ll be familiar with the types of financial transactions your business makes and will understand your industry’s unique financial needs. Ask prospective candidates about their experience with companies similar to yours. They should be able to tell you about their previous clients and how they helped them. 

2. Choose a Local or Virtual Bookkeeper

Bookkeepers are available all over the world. You can hire someone local or opt for a virtual bookkeeper. Both have advantages, but finding someone with experience in your area is essential if you choose a virtual bookkeeper. They’ll need to understand the local tax laws and regulations that affect your business. This is especially important if you operate in multiple states. 

Virtual bookkeepers often use secure cloud-based accounting software to collaborate from anywhere. Look for a candidate who is familiar with the software you use or is open to learning it. If you want to meet in person with your bookkeeper, go for someone local. Otherwise, a virtual bookkeeper can help you as much as a local one. 

3. Check for Credentials and Credibility

You’ll want to verify the credentials of any bookkeeper you’re considering hiring for your small business. Look for certifications from reputable organizations like:

• The National Association of Certified Public Bookkeepers
• The American Institute of Professional Bookkeepers. 

These organizations require continuing education to maintain certification, so you can be sure the bookkeeper you hire will be well-versed in the latest accounting practices. Credentials aside, you’ll also want to check the credibility of any candidates. Ask for references and take the time to speak with their previous clients. You can also search online for reviews or testimonials. 

4. Ask What Software They Use

Today, most bookkeeping is done with the help of software. Before you hire a bookkeeper, ask what programs they use. If you already have a software package you prefer, find out if they’re familiar with it or would be willing to learn it. 

You’ll want to ensure that all your financial information is stored in one place and that you can access it. If the bookkeeper uses a different program, ask if you have administrative rights to their account. 

5. Make Sure They Have Tax Experience

Taxes can have a compounding effect on your income over the life of your business. It’s essential to decrease your tax burden in line with tax laws to help you reach your financial goals quicker. Make sure that your bookkeeper is well-versed in all tax law changes. They should guide you in creating the best tax-efficient structure for your company.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven is a bookkeeping service that focuses on startups and small businesses. They offer various services to help manage your finances so you can focus on growing your business. Their team includes CPAs who understand the unique challenges of startups. They can help you save money with tax credits and ensure you never miss a filing deadline. 

You can get support from them via Slack 24/7, and they also offer fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline. Book a call today to see how Haven can help your business.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Best Outsourced Bookkeeping Services
• Organizing Small Business Bookkeeping
• Bookkeeping Services List
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business

‍

Imagine you’re a small business owner. You’ve worked hard to launch your dream company and are excited to watch it grow. But as your business starts to take off, you get buried under the weight of your success. You can’t keep up with your business's increasing demands, especially regarding bookkeeping. The disorganised mess of receipts and invoices is costing you time and money. If only you could eliminate this stress and return to your work! Learning effective practices for organising small business bookkeeping can help you get back on track. And hiring a bookkeeper can help you get there faster. This blog will explore the benefits of hiring a bookkeeper and how to organise small business bookkeeping with these practices.

At Haven, we help owners tidy up their bookkeeping by providing reliable accounting services for small businesses. Our team can help you catch up, organize your financial data, and develop a system for maintaining your books going forward. 

Why Do Small Businesses Need Bookkeeping?

Running a small business can be chaotic. You must juggle various responsibilities and balance ever-changing priorities. While managing your company's finances may not be at the top of your list, it should be. Accurate bookkeeping helps you make sense of your business's financial situation. This, in turn, allows you to make informed decisions and avoid potential pitfalls. 

Organized Records Mean Better Business Decisions

Small business owners need to know how much money flows in and out of their companies, as well as the sources and destinations of these funds. Bookkeeping helps business owners track the frequency of payables and receivables and discern other patterns that impact operations. 

For example, suppose your company relies on multiple vendors for a particular product. In that case, organised bookkeeping can help you compare costs to determine if you can reduce expenses by consolidating your orders. If disputes arise, documented evidence obtained through bookkeeping can help you resolve the matter quickly and efficiently. 

Keeping Payroll Straight

Payroll is likely one of your small business's most significant expenses. Unlike paying vendors or buying supplies, payroll isn't just a matter of cutting checks. Remunerating your staff accurately can be a complex exercise. When applicable, you must hold back federal and state taxes, unemployment and workers' compensation insurance, health and dental coverage, retirement account deductions, vacation pay reimbursements, and stock/ownership contributions. 

Keeping track of these figures requires meticulous checks and re-checks and rigorous notations for the record. A knowledgeable bookkeeper's chart of accounts helps manage these myriad numbers and serves as a necessary record if an employee contests a paycheck. 

Using Sound Figures for Budgeting

Every business worth its salt works from a well-devised budget. The prerequisite for any budget discussion is a timely awareness of income, spending, and assets. With precise numbers to work from, company leadership can decide about future investments, purchases, raises, and other expenditures. 

It can also resolve whether to increase its compensation from clients or customers. Nevertheless, none of these conclusions are made in a vacuum, as factual numeric information must buttress the financial decisions of every small business. Such data is compiled through bookkeeping. 

Getting a Better Handle on Cash Flow

Without an intimate knowledge of the dynamics of your cash flow, every slow-paying client and quick-invoicing creditor becomes an occasion for anxiety, and it can be a tedious and monotonous task. Quarterly tax estimates come due, and the rent increases, each adding to the stress level. 

With proper cash flow management, when your books and ledgers are up to date and systematised, there are fewer question marks to worry about. You know the funds that are available and where they fall short. The news is not always good, but at least you know it. 

Getting Ready for Tax Season

Tax planning can vex and intimidate owners, but accurate bookkeeping can help with everything, including the tax filing process. The maze of:

• Dedications
• Credits
• Exceptions
• Schedules

Of course, penalties are enough to surrender to the IRS without a body of well-organised documentation supporting your claims. 

This is why a dedicated bookkeeper is invaluable to a small business and is worth his or her weight in gold. Receipts, names, and dates back up that business dinner deduction. Those charitable contributions are all enumerated and accompanied by information on the charity and its payment information. Having this information in order and close at hand lets you easily file your tax return. The federal government doesn't mess around when it's time to file taxes. 

Protecting Against the Internal Revenue Auditors

As many know, a business can do everything right and still be subject to an IRS audit. In this case, bookkeeping helps. Your business return makes claims and representations, and the audit aims to verify them. 

Good bookkeeping is all about connecting the dots between those representations and reality. When auditors can follow the information on a ledger to receipts, bank statements, and pay stubs, to name a few documents, they quickly learn of the competency and integrity of the business organisation. IRS audit services assist businesses in gaining that reputation. 

Setting Goals and Reaching Them

In the same way, haphazard bookkeeping adds to stress and anxiety, it also blinds business owners to the potential they can realise in the long run. You are hard-pressed to set a destination without the information to see where you are. 

Only with understandable, detailed, and factual data can a business owner or management team plot a course for future success. 

• Will you need more staff?
• Can you afford more staff? 
• Will you need financing? 
• What is your debt situation now? 

A contemporary arrangement and distillation of cash flow, assets, and obligations is key to setting a path forward.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

How to Organize Small Business Bookkeeping Wth These Practices

1. Get Familiar With Financial Statements

Small business bookkeeping starts with understanding the basics, namely, the three core financial statements: 

• The balance sheet
• Income statement
• Statement of cash flows

These documents provide a window into your financial health so that you can make informed decisions and track performance. 

2. Keep Personal and Business Finances Separate

Mixing personal and business finances is a recipe for confusion and legal issues. Do yourself and your CPA a favour by keeping separate accounts and carefully tracking expenses. This simplifies bookkeeping and taxes and helps in accurate financial analysis.

3. Set Up a Business Checking Account

From the moment your business starts making money, you need to separate the personal from the business structure of your finances. Track expenses and profits, and sort it between personal and company accounts. Doing so makes it easier to come tax time and helps you keep your finances friendly and organised.

If you have an EIN, you can open a business bank account or just open a separate personal bank account and treat it just as you would a business account. All business income should be filtered through this account; all expenses should be paid through that account. Use a business credit card to keep transactions to that one account. This way, each month you will receive a bank statement to help you track your cash flow.

4. Understand Your Cash Flow

Keep a close eye on your cash flow to ensure you have enough liquidity to meet your short- and long-term obligations. By regularly reviewing your statement of cash flows, you can anticipate and address any potential shortages.

5. Automate Bookkeeping Tasks with Software

Put invoices, expense tracking, and payroll on autopilot with financial management software. This way, you can reduce errors, save time, and focus on running your business.

6. Build Your Business Credit Score

Establish and maintain a strong business credit score by paying down debt and avoiding high-interest rates you can’t afford. With a good credit score, you can secure financing to grow your business when and how you want.

7. Invest in Growth

With proper financial management, you can allocate funds to invest in growth, whether by reinvesting profits or taking on strategic debt. You can take on new projects, buy necessary equipment, or hire new talent.

8. Streamline Tax Payments

Don’t wait until the end of the year to manage your taxes. By switching to quarterly or monthly tax payments, you can avoid financial stress during tax season and maybe even reduce your tax burden with deductions and credits.

9. Monitor Your Books Regularly

Keeping a close eye on your financial records to ensure accuracy and flag any irregularities is essential. Set aside a regular time to check your general ledger so nothing falls through the cracks, and you can adjust it as needed.

10. Establish Financial Protocols and Plans

No matter how small your business is (yes, even you solopreneurs), developing and enforcing your financial protocols and plans can lead to better financial management habits and protect your business from potential risks. Protocols include setting and sticking to a budget, monitoring cash flow, and reviewing expenses carefully. 

Haven: Comprehensive Financial Management for Startups

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

5 Common Small Business Bookkeeping Mistakes To Avoid

1. Poor Record Keeping: How to Keep Your Books Up to Date 

Many businesses are guilty of not keeping proper track of their receipts and expenses. It's easy to misplace receipts or forget those little expenses you feel won’t matter in the long run. As a result of this, your books won’t match what you’ve provided and spent. This will then directly affect the tax you’re due to pay at the end of the year, leading to an inaccurate judgment of your finances. 

To combat this, more frequent record updating is required. We advise that you update your books every month. That way, you’re not trying to rack your brains for that lunch you put on the company credit card months ago. A proper system from month to month will save you time and money in the long run. 

2. Not Having Separate Bank Accounts: Why You Need to Keep Business and Personal Finances Separate 

Trying to operate your business with the same bank account for personal and business activities only results in one outcome: “problems”. It can be hard to distinguish between personal and business transactions, so things can easily slip through the net and get missed. 

Having separate accounts allows you to see where the transactions belong and spot errors and potential issues early.

3. Not Backing Up Your Records: How to Avoid Losing Important Financial Data 

If any technical issues arise and you end up losing your records or unable to access them for a while, you need a backup to rely on. That's why it's good practice to back up your systems regularly. You don’t lose any potential work and can continue working normally if you face any issues.

4. Poor Organisation: Why You Need to Get Your Bookkeeping Files in Order 

Organisation and a proper filing system are basic best practices of formal bookkeeping. How can you expect to stay on top of your books without strict organisation? You can’t. Accurately tracking income and outgoings by categorising them ensures that you’re always in the best position to have a firm grip on your financial position. 

Also, it means that you can have an accurate representation of whether your business is on track or problems need addressing. A neat filing system is so simple to put in place. The main issue, though, is laziness and not sticking to it. Make sure you persevere with it and don’t file things everywhere. That way, you won’t lose or misplace anything of importance. 

5. Not Using the Right Software: Choosing the Best Bookkeeping Software for Your Business 

Bookkeeping software is there to make your life easier, but you need to ensure you’re using the right one. Many businesses use price as a deciding factor, but just because the software is mega expensive doesn’t mean it will be the right one for your business. 

Nor is the cheap option that can save you money the one you should opt for. Many app-based bookkeeping software packages offer different price tiers, which allow you to customise your subscription with the features you will need the most. This means that you can choose just the features that you need.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

9 Tools To Help With Small Business Bookkeeping Tasks

1. Haven: A Small Business Bookkeeping Partner That Grows With You 

For small business owners, managing finances often feels like a full-time job that takes time away from running the business. That’s where Haven steps in. Explicitly designed for founders, Haven takes on the daily financial tasks that can otherwise pile up, from routine bookkeeping to complex tax filings. 

Haven supports small businesses by offering: 

• Day-to-day bookkeeping to keep your financial records accurate and up to date 
• Tax filing and R&D credit services that help you stay compliant and potentially recover money you're entitled to 
• Fractional CFO services to guide financial strategy and decision-making as your business scales 24/7 
• Slack support with experienced CPAs who understand the fast-paced nature of running a business 

With more than 400 startups already on board, Haven has helped companies reclaim hours of admin time, avoid missed tax deadlines, and access millions in tax credits. Whether you're just getting your books in order or preparing for growth, Haven’s dedicated team gives you the confidence to focus on your business, not the back office. 

2. Xero Accounting Software 

Let’s begin with a name synonymous with modern bookkeeping Xero Accounting UK. This cloud-based accounting software has redefined the way businesses handle their financial records. Xero’s AI-driven features offer a fresh perspective on bookkeeping by automating critical tasks. One of its standout features is its advanced bank reconciliation capabilities. While other software may offer basic reconciliation features, Xero takes it further by automating the process. 

This means that matching your bank transactions with your financial records becomes a breeze, minimising the risk of errors and ensuring impeccable accuracy in your books. But that’s not all Xero’s AI-driven expense categorisation is a real game-changer. It takes the manual effort out of categorising expenses by doing it automatically. This saves you time and guarantees consistent accuracy in your records. 

3. QuickBooks Online 

QuickBooks Online is another heavyweight in the world of bookkeeping. While it may not have the same level of advanced bank reconciliation as Xero, it still offers efficient features that streamline the process. This ensures that your financial records remain perfectly harmonious with your bank transactions, keeping your books accurate and up-to-date. 

Similar to Xero, QuickBooks Online embraces AI to automate expense categorisation. This automation reduces manual effort and minimises the chances of categorisation errors. Regarding your financial records, accuracy is paramount, and QuickBooks Online delivers on that front. 

4. FreshBooks 

FreshBooks takes a slightly different approach to bookkeeping, focusing on user-friendliness. Its interface is incredibly intuitive, making it a top choice for small businesses and freelancers. Tasks often considered tedious, like invoicing, expense tracking, and time management, are all automated in FreshBooks. This saves time and provides business owners with in-depth insights into their financial management through cohesive reports. 

While it may not have Xero's advanced bank reconciliation features, FreshBooks simplifies these essential processes for small businesses. Accuracy is maintained, and you can trust that your financial records align seamlessly with your bank transactions. 

5. Zoho Books 

Zoho Books is versatile and an excellent choice for businesses with evolving needs. It simplifies the fundamental functions of bookkeeping while providing the flexibility to adapt as transaction volume grows. 

While its bank reconciliation features are standard, Zoho Books offers reliable automated expense categorisation. This ensures that your expense tracking remains accurate and hassle-free. However, like some other options, it lacks Xero's cash flow predictions. 

6. Sage Business Cloud Accounting 

Sage Business Cloud Accounting takes simplicity to the next level for small businesses. Its AI-powered expense tracking and bank reconciliation features provide valuable insights that aid financial planning and management. 

Sage Business Cloud Accounting doesn’t offer cash flow predictions like its counterparts. However, its intuitive interface makes it accessible to users of all backgrounds, ensuring that small businesses can confidently manage their finances. 

7. KashFlow 

KashFlow brings its unique flair to bookkeeping, leveraging AI to streamline tasks such as invoicing, expense tracking, and financial reporting. This is particularly valuable for start-up owners seeking a fuss-free bookkeeping experience tailored to their needs. 

While it may not offer advanced bank reconciliation features, KashFlow’s focus on automating tasks sets it apart. It suits start-ups and small businesses seeking a straightforward bookkeeping experience. 

8. Less Accounting 

Less Accounting grew out of frustration at the types of financial management software available on the market. While Less Accounting software lacks QuickBooks Online’s elegance and features, it isn’t trying to compete with QuickBooks. 

Instead, Less Accounting considers it an alternative for businesses that only need the most basic accounting features: income and expense tracking, invoices and proposals, mileage tracking, reports, and double-entry accounting. It also offers integrations with financial institutions. 

9. Kashoo 

Kashoo was created when founders Dobes Vandermeer and May Chu decided to create a simpler solution for small business accounting. Kashoo aims to be simple. It provides basic accounting features and wants to make it simple for business owners to manage the accounting themselves. 

They offer features like bank imports, reporting, invoices, expense reporting, cash flow, payroll integrations, tax reporting, and data exports. It is the perfect software for businesses that do not need inventory management within the software.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven is a bookkeeping service that focuses on startups and small businesses. They offer various services to help manage your financials so you can focus on growing your business. Their team includes CPAs who understand the unique challenges of startups. They can help you save money with tax credits and ensure you never miss a filing deadline. 

You can get support from them via Slack 24/7, and they also offer fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline. Book a call today to see how Haven can help your business.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Best Outsourced Bookkeeping Services
• Organizing Small Business Bookkeeping
• Bookkeeping Services List
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business

‍

Small business owners often face the challenge of managing their finances while trying to grow their business. The benefits of hiring a bookkeeper can help alleviate some of the stress related to small business accounting. In this article, you'll learn how to manage your small business accounting and discover tips for hiring a bookkeeper to help your business thrive. 

Haven offers small business accounting services to help you organize and maintain your finances. 

21 Small Business Accounting Tips For Business Owners & Startups

1. Separate Business and Personal Expenses: Simplify Tax Time and Protect Personal Assets  

Opening a business bank account is one of the first small business accounting tips to implement. Business bank accounts make tracking and substantiating business expenses easier for tax deductions. 

They also protect personal liability by keeping business funds separate from personal funds. Consider opening a:

• Checking
• Savings
• Credit card
• Merchant services account for your business.  

2. Get Bookkeeping Software (and a Bookkeeper): Automate and Outsource for Accuracy  

Bookkeeping is the organized process of tracking all income and expenses. It’s a critical component of financial management that ensures business owners have the information they need to make sound business decisions. For many small business owners, accounting is not among their skill set. Hiring a person dedicated to the task or, for smaller businesses, outsourcing the function is often a wise investment. 

Accounting software automates bookkeeping processes that are time-consuming and error-prone if completed manually, making it easier to find all the information needed to complete financial statements. Small businesses are seeing a lot of success with cloud-based accounting software, in particular.  

3. Develop a Budget: Control Your Cash Flow  

One of the first steps in creating a business plan is developing revenue projections and a list of anticipated expenditures, then comparing that budget to actual expenses and revenue. 

A study by The Federal Reserve Banks of Chicago and San Francisco reported that more than 60% of businesses with excellent financial health always built a budget and started a separate bank account for payroll. Less than 5% of companies with poor financial health engaged in these two financial planning and management practices.  

4. Keep Accurate Business Records: Make Tax Time Less Painful  

Recordkeeping is one of the most critical responsibilities for a small business owner. Accounting software can automate much of the recordkeeping process and digitally store financial records. That makes it easy to document a transaction's amount, time, place, and business purpose when you claim expenses as tax deductions. 

In general, IRS requirements mandate keeping the records for at least three years; accountants recommend keeping them for seven years. Records a business needs to maintain are detailed in IRS Publication 583. But a few worth calling out for small businesses and startups include:  

• Gross receipts: The income you receive from your business. Records include cash register tapes, deposit information, receipt books, invoices, and Forms 1099-MISC.  
• Expenses: The costs you incur to operate your business. Records include canceled checks or other documents reflecting proof of payment, cash register tape receipts, account statements, credit card receipts and statements, and invoices.  
• Fixed assets: Need to be recorded to compute the annual depreciation and their gain or loss when you sell them. Asset documents include purchase and sales invoices, real estate closing statements, canceled checks or other documents that identify payee, amount, and proof of payment, credit card receipts, statements, and invoices.  
  

Receipt scanners make it simple to digitize receipts and invoices for easy tracking by automatically mapping the contents to defined fields in the accounting software. Accounting software may offer its own mobile app or support a third-party app enabling an employee or business owner to scan receipts with their smartphone camera. These apps use optical character recognition (OCR) technology to translate text into machine-readable code.  

5. Choose an Accounting Method: Consistency Is Key  

Every small business and startup must establish rules for determining when to report income and expenses. This provides a consistent accounting method for tax purposes. 

Under changes made by the Tax Cuts and Jobs Act, small businesses with $25 million or less in annual gross receipts for the three prior tax years can choose between accrual and cash-basis accounting. Many companies prefer this method because Generally Accepted Accounting Principles (GAAP) require accrual accounting.   

Cash vs. Accrual Accounting: Choosing the Right Method for Your Business

Cash-basis accounting can be more straightforward for small businesses because revenue is recorded when payment is received, and expenses are deducted when the money leaves the company’s account.

Accrual accounting records the sales when a product ships or a service is delivered. In a retail setting, a sale is recognized at the time of purchase, and in other industries, revenue may not be recorded for several weeks or even months after the sale. It requires double-entry bookkeeping. Since accrual accounting takes a long-term view of the business, it generally provides a better picture of a company’s financial health.  

6. Keep the Books Up to Date: Know Where You Stand  

Without keeping the books current, owners and employees don’t have a clear picture of the company’s financial state. Automating receipt and invoice capture is one way to ensure the books are always up to date. Another critical step is to link bank accounts with your accounting software. Businesses can download credit card and bank statements and manually import them as CSV (Excel). 

Some accounting systems offer a plug-in to pull information from your bank account and automatically retrieve daily bank transactions and statement files. The business can define the matching rules in its system to reconcile the statements, which makes the reconciliation process much easier. Some accounting software offers a direct integration to banks, so the business owner can manage and complete all banking tasks in the accounting system without also logging into their bank account portal.  

7. Optimize AP Terms and Invoicing: Manage Your Cash Flow  

To hold on to cash longer, take advantage of credit terms from key suppliers. Pay bills on a schedule that maximizes your cash flow, and when possible, pay early with vendors that offer a discount for doing so. To ensure steady cash flow, do everything possible to encourage on-time payment from customers. 

That could include offering discounts for early payment, running credit checks on potential customers before doing business with them, and revoking credit terms when necessary. Accounting software that can automate invoicing processes by automatically sending out bills and follow-up reminders could also help prevent outstanding invoices from piling up.  

8. Separate Accounting Functions: Minimize Fraud Risk  

Public companies must follow regulations that require controls to ensure segregation of duties. Small businesses are more likely to have a single person handling many accounting functions, but this creates an environment that introduces accounting fraud risk. 

However, owners can minimize this risk by implementing simple controls. One effective control is to ensure the same person who cuts the checks doesn’t sign the checks and reconcile the bank statements.  

9. Keep an Eye on Certain High-Cost Expenses: Labor and Inventory  

Labor costs are the most significant expense for most small businesses, and inventory is often another. To reduce labor expenses, many small companies outsource work to contractors who bill hourly. This can be cheaper because the contractors may not need 40 hours/week to complete your work and don’t require benefits. 

Time-tracking software can help leaders understand the cost of specific tasks, enabling the business to better budget and find ways to control these expenses. Companies can lower inventory costs by tracking inventory carrying costs, inventory turnover ratio, the amount lost to obsolete inventory, and other key metrics.  

10. Plan for Major Investments: Find the Right Time and Financing  

By tracking expenses and revenue consistently, the business can identify the best time for significant investments and establish the credit it may need to cover the cost. Business credit cards can help an organization establish a credit history so it has a better chance at qualifying for financing (and optimal financing terms), including lines of credit and loans, when it needs more capital. 

Securing these funding sources is essential to a company’s overall financial health. According to the Federal Reserve study, 45% of businesses with excellent financial health received loans or credit cards from a bank, compared to just 3% of companies with poor or below-average financial health. Credit cards offer perks for the business, such as business rewards or travel rewards.  

11. Carefully Monitor Tax Preparation: Stay Ahead of IRS Requirements  

The IRS generally requires that sole proprietors, partners, and S corporation shareholders make estimated tax payments if they expect to owe taxes of $1,000 or more when their return is filed. There are specific employment tax records you must keep (detailed in IRS resources on Recordkeeping for Employers and Employer’s Tax Guide). 

The IRS provides worksheets in Form 1040-ES, Estimated Tax for Individuals, or Form 1120-W, Estimated Tax for Corporations, that help calculate estimated tax. Businesses should also check the IRS tax calendar, which includes due dates and actions for every month. A company can sign up for email reminders or even import reminders into Outlook.  

12. Seek Professional Tax Preparation Guidance: Reduce Your Burden  

The NSBA says that one in three small businesses reports spending more than 40 hours yearly on federal taxes. Unsurprisingly, roughly two-thirds of small businesses pay an external tax professional/accountant to handle their taxes. There are even more benefits here for a sole proprietor, as the cost of hiring someone to prepare your business’s tax return is deductible.  

13. Ensure Inventory Data Is Accurate: Simplify Financial Reporting  

To prepare financial statements, the business needs accurate inventory data. It must calculate the cost of goods sold (COGS) for the income statement and the inventory value on hand for the balance sheet. 

If integrated with the point-of-sale system and accounting software, physical inventory is tracked by manually counting items regularly or pairing counts with an inventory management system that can automatically adjust the numbers as sales happen. Inventory management software makes it much easier to track inventory, and the information will be more accurate.  

14. Use Financial Statements to Evaluate Business Performance: What Are They Telling You?  

Logging expenses and income are the basis for generating these three key financial statements. Income statements help the business determine its profit (or lack thereof), a balance sheet shows assets, liabilities and shareholders’ equities for a snapshot of its financial position at a certain point in time, and the cash flow statement shows whether the company has enough money flowed into and out of a business in a given period and how much cash remains. 

However, when combined with the balance sheet, the cash flow statement can show whether a company has sufficient cash to meet its current obligations. Banks and investors require all three statements to secure financing or funding.  

15. Generate Financial Projections: Prepare for the Future  

Financial projections help businesses estimate future income and expenses to anticipate if they need financing or should make capital expenditures. Financial forecasts help business leaders estimate cash flow and determine when to change pricing or production plans. 

Forecasts provide crucial financial information to external stakeholders when the business seeks a loan or funding, or if the business is the target of an acquisition. A company can also use these forecasts to create pro-forma financial statements: projected income statements, balance sheets and cash flow statements. Projections are based on economic modeling techniques and answer questions that may come from lenders, investors or other business stakeholders. 

At their basic level, they answer a question like: 

• If we lend you this money, what will you do with it, and how will you pay it back?  

16. Set Up Your Chart of Accounts: Start Categorizing Transactions  

To keep your business finances organized, you must categorize each transaction within your chart of accounts (COA). At the highest level, your income and expenses can be divided into assets, liabilities, revenues, expenses, and equity. 

Each of these accounts can be further divided into sub-accounts to help you better track your money. For instance, your expenses account may have multiple sub-accounts like advertising, office supplies, employee wages, payroll taxes, software subscriptions and more. 

Any tax professional who helps your business will want to see your transactions categorized in this way, so it's good to get in the habit of organizing your finances into accounts early on in your business.  

17. Schedule Time Each Week or Month to Review Your Finances and Reconcile Your Accounts (or Hire a Professional to Do It for You)  

Laying the foundation for your business accounting is only half the battle. Once your software and accounts are set up, you'll need to continually monitor your finances and ensure that every transaction has been properly recorded and categorized. Even if you use an automatic transaction import feature, you'll still want to set aside time each month to review and reconcile your business's financial accounts and ensure nothing was omitted or miscategorized. 

Of course, you don't have to handle this task by yourself. Suppose you don't have the budget to hire an in-house accountant or financial manager. In that case, you can outsource your bookkeeping and payroll needs to a specialized firm or consult a financial adviser.  

18. Prioritize Internal Audits: Stay Close to Your Financial Health  

Regular auditing keeps you close to the essential insight into your company's financial health. This empowers you to make the best-informed decisions for your company and helps you anticipate and address potential challenges in your business operations.  

19. Avoid Too Much Debt: Keep Financial Risk Manageable  

Sometimes the wisdom of the ages has the best solutions. The best accounting tip for a company is to avoid too much debt. Sounds simple, but there is precise data that shows 60% of companies over lever and 90% of companies under stress have some component over too much debt.  

20. Maintain Adequate Levels of Working Capital: Manage Market Volatility  

Maintaining adequate levels of working capital is critical, especially with market volatility. Prioritize working closely with key customers to ensure that funds are received promptly, and build strong relationships with your vendors to maximize the benefits of working capital for the company. Better communication across the board leads to success in the long term.  

21. Invest in Your Company: Use Your Finances for Growth  

Invest back into your company. Use your finances for more growth and development to expand operations. Expand by hiring and promoting, building and improving technology anything that can improve and grow your business. Reinvesting in your company is an excellent demonstration of your confidence in its success.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

Why is Accounting Important for Your Small Business?

Knowing your business's financial position is key to growth. With a solid accounting foundation, small business owners can create financial reports to understand the money coming in and flowing out of their organization. The more you track your cash flow, the better you can predict future patterns to help you make smart business decisions. 

Understanding Fixed and Variable Costs 

While small business accounting tips include tracking cash flow, they also involve tracking fixed and variable costs. Fixed costs, such as rent and insurance, are the same each month, while variable costs, such as utilities and raw materials, can fluctuate. 

Cost accounting records fixed and variable costs, analyzes them, and generates helpful reports to help you determine the cost of a project or product production. This allows you to make better financial decisions and create a precise budget to improve your business's net profit margins and maintain economic stability during production. 

Getting a Better Grasp on Your Business's Health 

When you learn to prepare financial statements and read balance sheets, income statements, and cash flow statements, you'll better grasp your business's financial position. Once you understand how your business is performing, you'll be better prepared to make informed decisions to improve your operations. 

Creating Checks and Balances to Avoid Fraud and Theft 

Accurate accounting helps you detect and avoid fraud and theft by customers, employees, and suppliers by creating a system of checks and balances that verifies transactions. It builds accountability by making it easier to trace any transaction. Adequate internal controls are a key element of a successful accounting system. 

Facing Audits With Confidence 

When you understand your business's financials, you'll be better prepared for potential audits. An accountant can help ensure your business complies with all tax obligations and keep you organized with detailed records, so you'll have nothing to worry about if the IRS requests more information. 

Attracting Funding With a Handle on Your Financials 

Bankers are more confident when dealing with business owners who have a handle on their company’s finances and understand the financial implications of their decisions. The overall economic health of your organization can determine future loans, which, in turn, may allow you to purchase new machinery or invest in new technology. 

Running Your Business More Efficiently 

Regularly reviewing your financial statements and establishing a detailed budget will allow you to discover operational inefficiencies. Saving a bit in your business bank account on several expenses can add to significant, long-term results as you improve your organization's overall health and achieve long-term success. 

Haven: Comprehensive Financial Management for Startups

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

When Do You Need a Professional Accountant for Your Small Business?

When a startup or small business needs a professional accountant, the need varies depending on the industry's stage and financial complexities. Small companies can manage with a bookkeeper to handle daily financial tasks and organize the business. However, as the business grows, an accountant’s expertise will be required to navigate the increasing complexities of financial reporting, tax compliance, and legal obligations. 

When to Transition from a Bookkeeper to an Accountant for Strategic Growth

Certain situations call for an accountant’s involvement regardless of business size. For instance, an accountant should be involved immediately if the IRS audits the business or faces a legal financial compliance issue. An accountant can provide crucial insights when preparing for major business decisions such as securing financing, selling the company, or mergers and acquisitions. 

In summary, while a small business can initially operate with just a bookkeeper, there will come a time when an accountant’s expertise is necessary. Identifying this time and hiring a professional accountant to assist with the transition can save the business from costly mistakes.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven is a bookkeeping service that focuses on startups and small businesses. They offer various services to help manage your financials so you can focus on growing your business. Their team includes CPAs who understand the unique challenges of startups. They can help you save money with tax credits and ensure you never miss a filing deadline. 

You can get support from them via Slack 24/7, and they also offer fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline. Book a call today to see how Haven can help your business. 

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Best Outsourced Bookkeeping Services
• Organizing Small Business Bookkeeping
• Bookkeeping Services List
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business

‍

‍

Imagine you’re a startup trying to attract investors. They want to see your financials, and you want to show them accurate books. But what if your records aren’t up to date? The benefits of hiring a bookkeeper become clear. This article will explore bookkeeping best practices to help you organize and maintain accurate financial records. Not only will this help you achieve your goals, but it will also ease the stress of financial management and improve your business’s overall health.  

When learning about bookkeeping best practices, consider how Haven can help. Our accounting services for small businesses are designed to support startups like yours. We can help you implement the right processes to ensure accuracy and get your financials in order.

What Exactly Do Bookkeepers Do for Startups?

Running a startup is like riding a roller coaster that you built yourself. There are twists and turns, and many things can go wrong. Financials are one of those things. A bookkeeper helps you manage your financial records to avoid unexpected drops and loopholes in your business's economic health. 

They do this by ensuring that your financial statements are accurate and up to date. If you ever need to look at your numbers to make a business decision or to provide information to an external party, a good bookkeeper will have the data ready for you. They can also help explain complex financial terms and processes so that you can better understand your startup's financial standing.   

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

15 Bookkeeping Best Practices for Startups To Ensure Accuracy

1. Don’t Underestimate The Basics 

If you’re just starting, you might consider using basic tools like a pen and paper or a simple spreadsheet to organize your bookkeeping. It’s old school, but this can work if you have a few transactions. Ensure you’re serious about your business and ready to graduate to a more accurate system as you grow. 

2. The Power of Spreadsheets 

In the digital age, spreadsheets offer a simple and effective way for start-ups to keep track of their financial activities. A spreadsheet can be a cost-effective alternative when starting or operating a part-time business with a limited budget. 

As your business grows and becomes more complex, you can transition to specific accounting software. With a spreadsheet, you can set up a basic accounting system to track invoicing, perform calculations, and even set up a budget. 

3. Embrace Accounting Software 

For those more serious about their business, subscribing to accounting software might be the best option. Modern accounting software often links directly to your bank account, making it an efficient way to document all necessary transactions. 

It also reduces the risk of errors and offers features like generating professional invoices, tracking debts, and ensuring everything is entered accurately for your accountant at tax season. If you opt for a cloud-based solution, you’ll enjoy real-time access to your accounts, increased data security, and the flexibility to access your financial data anytime, anywhere. 

4. Stay On Top Of Your Cash Flow 

Regardless of your accounting system, a sound system will enable better decision-making based on real-time financial insights. Identifying cash flow trends can help drive your business growth by revealing your most profitable products and services, biggest customers, highest costs, and more. The ability to monitor these trends places you in a better position to improve your profits and spot potential growth areas. 

5. Categorize Transactions 

Organizing transactions into categories is another vital bookkeeping practice for startups. Categories such as income, expenses, payroll, and taxes help startups track their spending patterns and income sources. Proper categorization also simplifies financial reporting, making it easier to understand where the money is going and how much profit the business generates. 

For instance, categorizing expenses into marketing, utilities, and supplies allows startups to identify areas where they might be overspending. This practice also helps during tax season, as it becomes easier to calculate deductions and credits. 

6. Reconcile Bank Statements Regularly 

Bank reconciliation is a critical step in bookkeeping for startups. This practice involves comparing the startup’s financial records with bank statements to ensure they match. Discrepancies between the two can indicate errors, unauthorized transactions, or missing entries. By reconciling bank statements regularly, such as monthly or weekly, startups can identify and correct issues before they escalate. 

For example, if a payment is recorded incorrectly or a bank fee goes unnoticed, reconciliation helps catch these mistakes. Staying on top of bank reconciliation ensures accurate financial records and prevents cash flow issues. 

7. Manage Invoices And Payments Efficiently 

Managing invoices and payments is a core part of bookkeeping for startups. Startups should send invoices to clients promptly and follow up on overdue payments to maintain steady cash flow. Paying vendors on time helps build strong relationships and avoid late fees. 

Implementing an invoicing system or using software to automate the process can save time and reduce errors. For example, setting up reminders for upcoming payments or tracking overdue invoices ensures nothing falls through the cracks. Proper management of invoices and expenses is crucial for financial stability and credibility. 

8. Separate Business And Personal 

Startups should always separate business and personal finances to avoid confusion and maintain clear records. Mixing the two can lead to errors, missed tax deductions, and difficulty tracking business expenses. 

Opening a dedicated business bank account and using separate credit cards for business transactions are simple steps to achieve this. Keeping business and personal finances separate simplifies bookkeeping and helps startups establish professionalism and credibility. 

9. Stay Compliant With Tax Regulations 

Compliance with tax laws is a critical aspect of bookkeeping for startups. Startups must keep accurate records to file taxes correctly and on time. Failing to comply with tax regulations can result in penalties and harm the startup’s reputation. 

Bookkeeping practices like maintaining receipts, categorizing expenses, and tracking income make it easier to calculate tax liabilities. Working with a tax professional or accountant can also ensure compliance and help startups take advantage of tax deductions. 

10. Conduct Regular Financial Reviews 

Bookkeeping for startups should include regular financial reviews to assess performance and make informed decisions. Reviewing financial records monthly or quarterly helps startups:

• Identify trends
• Track progress
• Address any issues early

For example, if a startup notices a decline in sales or an increase in expenses, it can take immediate action to improve its financial situation. Regular reviews also provide insights that help set realistic goals and plan for growth. 

11. Follow Generally Accepted Accounting Principles (Gaap). 

Generally Accepted Accounting Principles (GAAP) represent the financial recognition rules most U.S. businesses follow when preparing financial statements. GAAP rules aim to make financial reporting accurate and consistent while promoting transparency. For example, GAAP instructs the timing for recording revenue and expenses. 

GAAP requirements depend on your business’s accounting method. Suppose you are interested in expanding your business internationally. In that case, you may also want to follow International Financial Reporting Standards (IFRS), which provides a set of guiding principles for accountants worldwide. These standards are not legally binding but convenient for businesses seeking to communicate with international clients. 

12. Establish Internal Controls 

Establishing internal controls is essential for safeguarding assets, preventing fraud, and ensuring accuracy in financial reporting. Internal controls are policies and procedures implemented by businesses to manage risks and achieve operational objectives. One key aspect of internal controls is the segregation of duties, which involves dividing responsibilities among different employees to prevent individuals from having too much control over financial processes. 

For example, the person responsible for recording transactions should not be responsible for authorizing payments. Reconciling bank statements, conducting internal audits, and implementing security measures such as password protection and access controls can also help strengthen internal controls. Businesses should document their internal control procedures and regularly review and update them to adapt to changes in operations or regulations. 

13. Double-Check Your Bookkeeping With Credit Card And Bank Statements 

Double-checking all recorded transactions with bank and credit card statements each month is a good practice to minimize the risk of bookkeeping errors. However, it’s essential to remember that bank and credit card statements do not replace good bookkeeping. Banks and credit cards can also sometimes make mistakes, so having a record of your invoices and receipts is essential. 

14. Optimize A Chart Of Accounts 

Creating a chart of accounts (COA) is the key to tracking your startup's financial health. A COA lists all the accounts a business uses in its general ledger, broken into categories such as: 

• Assets
• Liabilities
• Equity
• Expenses
• Revenue

These subcategories help you gain an accurate picture of your financials. 

15. Consider Outsourcing Your Bookkeeping Services 

When you hire a bookkeeper or add the responsibilities to your list, you risk losing valuable time and increasing your administrative burden. You might also open yourself up to other issues, such as incorrect data or falling behind on your books due to your lack of specialized knowledge and training.

We recommend partnering with professional bookkeepers specializing in recordkeeping practices for your industry. Outsourcing your bookkeeping services helps you save bandwidth and resources. Instead of organizing receipts and tracking expenses, you can focus on growing your business.

When Do I Need to Hire a Professional Bookkeeper?

Business owners often try to handle their bookkeeping independently, especially when starting. But, as the business grows, this approach can create more problems than it solves. Three specific signs indicate it’s time to bring in a professional bookkeeper. The first sign is when you lack timely visibility into your financials. In this scenario, you’re likely behind on your bookkeeping and don’t have the financial data you need to make informed decisions. 

The second sign is when you cannot produce investor-ready financial statements with high confidence. This often happens when businesses maintain their financials on a cash basis, and they’re asked to provide accrual-based financial statements. The third sign is when you can’t maintain tax compliance. If filing your taxes on time has become stressful or complicated, hiring a bookkeeper is time. 

Related Reading

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• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

What to Look for in a Professional Bookkeeper

Accounting software is evolving rapidly. The bookkeeper you hire should know how to use the latest tools and be able to adapt to your start-up’s preferred system. They should also be able to explain different software options and recommend one that suits your business’s needs.

Of course, technical competency goes beyond software. Your bookkeeper should understand:

• Accounting principles
• Tax regulations
• Financial statements

To ensure your business complies with legal requirements and industry standards. 

Attention to Detail in Financial Record Keeping 

Even the most minor errors in bookkeeping can lead to serious problems. Inaccurate financial data can cause you to overpay taxes, miss crucial deadlines, or make poor business decisions. 

A professional bookkeeper pays close attention to detail. They meticulously document every transaction, categorize financial data correctly, and reconcile accounts to maintain accuracy. 

Adaptability and Flexibility in Start-up Environments 

Start-ups are known for their rapidly changing priorities. One day, you may be focused on securing funding, and the next, you could deal with a regulatory compliance issue. Your bookkeeper needs to adjust to shifting demands and be proactive in finding solutions rather than relying on standard processes. 

Time Management Skills for Meeting Deadlines 

Bookkeeping is a deadline-driven job. Your bookkeeper must be able to manage their time effectively to deliver financial reports, tax submissions, payroll, and reconciliations on schedule. Good time management also helps ensure your business runs smoothly by providing up-to-date financial data for decision-makers. 

Communication Abilities for Financial Clarity 

Your bookkeeper will work closely with you, your team, and external stakeholders such as investors and auditors. They must translate complex financial data into simple, actionable insights and communicate them. 

High Ethical Standards for Handling Sensitive Financial Data 

Trust and integrity are crucial in bookkeeping. Your bookkeeper will have access to sensitive financial information, and they must be able to handle it with the utmost confidentiality.

They should be familiar with regulatory compliance requirements and have a strong moral compass to ensure your business meets its obligations.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven is a bookkeeping service that focuses on startups and small businesses. They offer various services to help manage your financials so you can focus on growing your business. Their team includes CPAs who understand the unique challenges of startups. They can help you save money with tax credits and ensure you never miss a filing deadline. 

You can get support from them via Slack 24/7, and they also offer fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline. Book a call today to see how Haven can help your business. 

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• Best Bookkeeping Services
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• Bookkeeping Services List
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business

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Running a small business means juggling a million tasks, and bookkeeping is among the most critical. It’s easy to let your financial records slide when focused on serving customers and growing your business. However, the benefits of hiring a bookkeeper are undeniable, especially when tackling the endless bookkeeping tasks that come with running a business. This article will help you understand the specific bookkeeping duties that a professional can take off your plate so you can get back to business.  

If you’re ready to stop stressing over your financial records and focus on what matters, Haven's accounting services for small businesses can help you get there. 

What is a Professional Bookkeeper?

A Professional Bookkeeper is a skilled financial specialist responsible for accurately recording and managing an organization's financial transactions. Their role involves maintaining up-to-date and organized income, expenses, assets, and liabilities records, ensuring that the company's financial data adheres to established accounting principles and regulations.

According to Business Research Insights, the global bookkeeping services market, valued at around USD 46.1 billion in 2024, is projected to reach USD 97.3 billion by 2032, with a CAGR of 9.8% during the forecast period. By:

• Meticulously documenting transactions
• Categorizing expenses
• Reconciling accounts
• Generating financial reports

A professional bookkeeper provides critical insights that aid businesses in making informed decisions, tracking their financial health, and complying with tax and regulatory requirements.

The Crucial Role of a Professional Bookkeeper in Financial Management

Consider a small retail business. A professional bookkeeper for this business would record all sales transactions, categorize them by product or service, and input corresponding costs and expenses. They would also track accounts receivable and accounts payable, ensuring that bills are paid on time and payments are collected promptly.

They would reconcile bank statements to verify the accuracy of recorded transactions and identify any discrepancies. This meticulous record-keeping allows the business owner to make decisions based on their financial status, aids in tax preparation, and provides valuable insights into the company's economic performance.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

13 Bookkeeping Tasks a Bookkeeper Helps Businesses With

1. Daily Transactions and Cash Flow Management

Bookkeepers handle the day-to-day management of accounts. They keep track of every sale or purchase and use software to do it all. This makes it much easier for them to monitor your cash flow. It saves plenty of data entry time. 

2. Accurate and Updated Records

Maintaining accurate and updated records is one of the primary tasks of a bookkeeper. They flag any inconsistencies between the books and your business accounts to resolve problems quickly. 

3. Compliance With Laws and Regulations

Bookkeepers keep businesses aligned with laws and regulations, especially regarding taxes. They help ensure your business stays compliant with the relevant tax laws to avoid penalties. 

4. Tax Preparedness

Bookkeepers keep you prepared for tax season by making sure your records are accurate and up to date. This way, you can meet tax deadlines and avoid paying any additional fines.

5. Bank Feed Management

Bookkeepers manage transactions brought in through software, like an app. Bank feeds link the software with your business bank account to allow you to see each transaction in real-time. 

6. Accounts Payable

Bookkeepers make payments on behalf of your small business. This can include anything from payment of supplier invoices to petty cash and expenses. 

7. Accounts Receivable

Bookkeepers prepare invoices and send them to your clients so you can receive payment on time. They also manage the accounts receivable ledger and chase late payments to keep your records accurate. 

8. Financial Statements

Bookkeepers prepare significant financial statements for small businesses, including profit and loss, balance sheets, and cash flow statements. 

9. Payroll Processing

Some bookkeepers can fulfill payroll and other HR functions for small businesses. This can include assisting businesses with processing paychecks and tax payments to employees. 

10. Foreign Currency Transactions

Bookkeepers maintain accurate foreign currency accounts, utilizing current exchange rates. Digital bookkeeping apps can make this task easier by instantly analyzing exchange rates. 

11. Stocktake

Bookkeepers produce inventory reports by counting stock items. They report any discrepancies to the business to address problems quickly. 

12. Cash Flow Monitoring

Bookkeepers monitor the balance of revenues to expenses and offer advice if the business needs more available cash to operate. 

13. Preparing for Accountants

Bookkeepers make sure accounts are valid and up to date when an accountant needs them. This lets the accountant use their knowledge to make business recommendations and complete any tax returns. 

Financial Runway

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Does Your Startup/Small Business Need a Bookkeeper?

Many small businesses and startups put off bookkeeping or assign it to an already overworked office manager. Neglecting this essential function often leads to expensive mistakes, missed tax deadlines, legal troubles, and missed growth opportunities. Establishing solid financial practices early is critical regardless of your industry or stage, and bookkeeping is where that begins.

Why Bookkeeping Matters

Accurate, up-to-date financial records give you the information you need to make smart decisions. Without reliable data, it’s easy to lose track of cash flow, overspend, or miss red flags. It's far more efficient and less costly to set up proper bookkeeping from the start than to try cleaning up disorganized records later.

Poor bookkeeping can create serious issues:

Not knowing whether you have enough cash to cover expenses

Damaged relationships with vendors and clients due to late payments

Unexpected tax bills, including penalties and interest

While it’s understandable that early-stage businesses want to reduce costs, cutting corners on bookkeeping often results in a false economy.

Bookkeeping and Future Growth

Bookkeeping isn’t just about staying organized. Clean and accurate financial records are essential if you’re hoping to raise capital, attract investors, or sell your company down the road. Investors want to see that your accounting is timely, consistent, and well-documented. It makes early conversations easier and due diligence far smoother.

If your goal is to go public, you must have a solid history of accurate financial data. Without that, preparing for an IPO can become time-consuming and extremely expensive.

The bottom line is that whether you’re a team of two or twenty, sound bookkeeping isn’t optional; it’s foundational. Investing in it early will help you make better decisions, avoid costly mistakes, and prepare your business for future opportunities.

Related Reading

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Benefits of Working With a Professional Bookkeeper on Your Business

Running a small business is no easy feat, especially regarding all the financial aspects of keeping it afloat. It's an uphill battle for many business owners, from bookkeeping to managing payroll, keeping abreast of tax regulations, and maintaining accurate financial records.

If you’re feeling overwhelmed by the number of tasks you have to complete in your business, it’s time to consider outsourcing your bookkeeping needs. 

1. Cost-effective

As a small business owner, you’re likely trying to keep your overhead costs low. Outsourcing your bookkeeping needs is a great way to save money while getting expert services. You won’t have to pay a full-time employee a salary, plus benefits and holiday pay. Instead, you’ll pay a competitive rate for a team of professionals who will handle all your bookkeeping needs.

This way, you can focus on your business’s main tasks, generating revenue and expanding operations, and not worry about difficult-to-manage expenses.

2. Expertise

Outsourcing your bookkeeping allows you to tap into the expertise of professionals in the industry. Professional bookkeepers have a wealth of experience and training in financial reporting, accounting software, and staying abreast of the latest tax regulations, which means you get accurate and reliable financial reports. This can be critical for making sound business decisions. You do not have to worry about the changing regulations as your accountant will be on top of it.

Handling bookkeeping internally could pose significant risks if you lack the necessary skills and qualifications to handle the work. By outsourcing, you can ensure that your financial records are accurate and compliant with HMRC and legal requirements.

3. More time

Time is money, and the time you spend on bookkeeping could be used on more profitable tasks, like growing your business or serving customers. Outsourcing your bookkeeping frees up time to focus on other essential business aspects, such as sales, marketing, and managing employees. Besides that, with outsourcing, you no longer need to check your books at the end of the month.

Working with a professional bookkeeping firm ensures that the financial aspects of your business are in order and completed for you on schedule, which is great for time management. By partnering with a team of bookkeeping experts, you can manage your business better and enjoy a healthier work-life balance.

4. Compliance with Tax Regulations

Tax compliance is one of the most critical aspects of running a business. Professional bookkeepers ensure your records comply with local, state, and federal tax laws, reducing the risk of audits and penalties. They also help you stay prepared for tax season by organizing all documents.

5. Improved Cash Flow Management

Understanding your cash flow is vital for making informed decisions, especially for small businesses where every dollar counts. Professional bookkeepers provide detailed insights into your cash flow, helping you identify patterns and make necessary adjustments to improve liquidity.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Running a business means juggling a million tasks daily. Between managing your team, serving customers, and growing your operation, there’s little time left for bookkeeping tasks. These financial duties are critical to your business’s success. 

They include daily operations like entering transactions and categorizing expenses, and more complex activities such as reconciling accounts and preparing for tax season. By hiring a bookkeeper, you can free yourself from these time-consuming tasks to focus on what matters: running your business. 

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• Bookkeeping Services List
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business

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Small businesses often face an uphill battle when managing financial records. With limited resources, keeping up with bookkeeping tasks and staying compliant with tax regulations is challenging. This is where benefits of hiring a bookkeeper can help. They can relieve the stress of managing your business’s financial records and help you avoid costly mistakes and prepare for tax season. Before you decide to bring on a bookkeeper, it’s helpful to understand the differences between a bookkeeper and a CPA. This article will explore the distinctions between these two financial professionals to help you determine which is right for your small business.  

If you’re looking for accounting services for small businesses, Haven can assist. Our team can help you understand the differences between a bookkeeper and a CPA to determine which is best for your business.

What is Bookkeeping/ Bookkeeper?

Bookkeeping is not just accounting. Bookkeeping refers to the daily recording of:

• Financial transactions 
• Activities

It is a subset of accounting that requires the following jobs to build a financially stable business: 

• Recording financial transactions
• Posting debits and credits
• Producing invoices
• Maintaining and balancing current accounts, historical accounts, and general ledgers
• Completing payroll

Financial Pulse

One of the main components of bookkeeping is managing a general ledger. Bookkeepers are responsible for providing accurate, up-to-date financial information about a business. They’re always taking the pulse of a company. Their reports often go to business owners and managers to help them make decisions. 

Some bookkeepers are involved in strategy development. Bookkeepers may also share some jobs with accountants, such as preparing:

• Annual financial reports 
• Tax returns

Related Reading

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• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business
• Benefits of Virtual Bookkeeping

What Is CPA (Certified Public Accountant)?

You may have heard the term CPA thrown around a lot. But what exactly is a Certified Public Accountant? A CPA is an accounting professional who has met state licensing requirements to offer accounting services to the public. These requirements include:

• Passing the CPA exam
• Meeting education and experience requirements
• Committing to ongoing education

CPAs offer a wide variety of accounting services. One essential task for most CPAs is to prepare, maintain, and/or inspect financial records to ensure that the information they represent is accurate and complies with relevant laws and regulations. This can include: 

• Preparing financial statements 
• Organizing financial records 
• Preparing tax returns 
• Providing financial and tax forecasts 
• Preparing documents required by the 
• Securities and Exchange Commission (SEC) 
• Providing auditing and review services

Financial Guidance

Since accountants can usually develop a deep understanding of your finances, they can often help:

• Improve your financial performance
• Set financial goals
• Create a plan to achieve them

Financial Runway

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

Bookkeeper vs. CPA: Understanding The Key Differences

As your business grows, professional financial support becomes more critical. Not all financial professionals offer the same services or have the same qualifications. Understanding the key differences between a bookkeeper and a Certified Public Accountant (CPA) can help you decide which is right for your needs.

Education

The first significant distinction lies in:

• Education 
• Certification

Bookkeepers typically do not need a formal degree, although many hold a certificate in:

• Accounting
• Bookkeeping
• Related field

Credential Requirements

Some may also pursue voluntary certifications, such as the Certified Bookkeeper (CB) credential through the American Institute of Professional Bookkeepers (AIPB), but these are not required to practice.

CPAs must meet strict educational and professional standards. In most states, this includes:

• Completing at least 150 college credit hours (usually more than a bachelor’s degree)
• Passing the Uniform CPA Exam
• Meeting experience requirements before being licensed

Ongoing Learning

CPAs must also complete continuing education regularly to maintain their license. This difference in education reflects the scope and depth of the services each professional can provide.

Specialization

Bookkeepers focus on the day-to-day financial operations of a business. Their tasks include:

• Recording income and expenses
• Reconciling bank and credit card accounts
• Issuing invoices and managing accounts receivable
• Processing payroll
• Maintaining financial records

They play a crucial role in keeping your financial data current and accurate.

Advanced Services

CPAs offer more advanced financial services. They are qualified to:

• Prepare and file complex tax returns
• Conduct audits
• Offer financial and tax planning advice
• Guide business structure and compliance
• Represent clients in front of the IRS

Bookkeepers maintain your financial data, while CPAs interpret that data for:

• Decision-making 
• Compliance

Regulations

A state or national licensing body does not regulate bookkeepers. While they are expected to follow generally accepted accounting principles (GAAP), there is no legal oversight unless they hold a voluntary certification.

State boards of accountancy license CPAs. They are legally bound to follow ethical and professional standards, and failure to comply can result in disciplinary action, including losing their license. This added regulation ensures higher accountability and trust, especially when dealing with sensitive matters like taxes or audits.

Fees

Fees are another key difference between bookkeepers and CPAs.

Bookkeepers usually charge lower hourly rates or monthly retainers. Their ongoing and consistent services make them cost-effective for managing regular financial tasks.

CPAs charge more per hour or engagement, reflecting:

• Their advanced training 
• The complexity of their work

Strategic Savings

Hiring a CPA for tasks like tax planning or entity selection can save money in the long run by helping you:

• Take advantage of deductions
• Avoid penalties
• Stay compliant with tax laws

Accountability and Support

Both roles offer value but differ in the support type they provide.

Bookkeepers work closely and consistently with your business. They’re often the first to spot discrepancies or trends in your finances and can provide ongoing support to keep your records accurate and up to date.

While highly trained, CPAs may be engaged for specific projects like tax preparation or financial consulting. They may not offer the same regular, hands-on involvement as a bookkeeper unless retained under a longer-term advisory arrangement.

Does Your Business Need A Bookkeeper Or CPA?

If you're self-employed or running a small business, you're likely managing a lot independently, including your finances. But as your business grows, so does the complexity of your financial responsibilities. Outsourcing your financial tasks is helpful and necessary.

So, should you hire a bookkeeper or a Certified Public Accountant (CPA)? The answer depends on the type of support you need.

When to Hire a Bookkeeper

A bookkeeper is best suited for handling your day-to-day financial operations. This includes:

• Recording income and expenses
• Performing bank and credit card reconciliations
• Managing accounts receivable and payable
• Preparing basic financial reports (like profit and loss statements)

Bookkeepers usually charge a monthly retainer, which can be more cost-effective than hiring a CPA if your needs are primarily transactional and administrative.

Scaling Support

Many business owners start by using bookkeeping software (like QuickBooks or Xero) to manage their finances themselves. 74% of small businesses use bookkeeping software to help track their activities and perform monthly reconciliations.

But once your transaction volume increases or you’re spending too much time on bookkeeping tasks, outsourcing to a professional bookkeeper can free you up to focus on growing the business.

When to Hire a CPA

A CPA is more appropriate when your needs go beyond basic bookkeeping. CPAs offer:

• Tax preparation and filing
• Business structure advice
• Tax planning strategies
• Financial audits
• Help with loan applications or investment readiness

CPAs generally charge a higher hourly rate than bookkeepers but may offer fixed fees for specific services, such as filing annual tax returns or providing financial statements for lenders.

Strategic Onboarding

Many small business owners choose to consult a CPA before hiring a bookkeeper. Early in your business journey, a CPA can provide essential advice on choosing the right business entity (like LLC vs. S Corp), correctly setting up your accounting systems, and helping you stay compliant with tax laws.

You don’t always need a CPA and a bookkeeper, at least not simultaneously. A CPA can help lay the groundwork if you're just starting out. As your business grows and your daily financial tasks become too time-consuming, a bookkeeper can step in to manage the workload.

Collaborative Approach

Many businesses eventually use both, with the bookkeeper handling daily operations and the CPA overseeing higher-level financial strategy and compliance.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Best Bookkeeping Services
• Bookkeeping Services for Startups
• Best Outsourced Bookkeeping Services
• Organizing Small Business Bookkeeping
• Bookkeeping Services List
• Bookkeeping Packages for Small Business
• Best Accountant for Small Business

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When it comes to bookkeeping vs. CPA, it’s essential to understand the distinct roles these financial professionals play in your business. A bookkeeper manages your day-to-day financial transactions, while a CPA handles your tax filings and financial reporting. 

At Haven, we offer both bookkeeping and CPA services to ensure your financials are in order from the ground up. Our team will manage your financial runway so you can focus on helping your business take flight. 

If you’ve ever wondered about the benefits of hiring a bookkeeper, you’re not alone. Small business owners often face the challenge of managing their finances while trying to grow their operations. The good news is, you don’t have to do it all alone. This article will help you understand how virtual bookkeeping can ease your financial burdens and help you get back to running your business. As you read, you’ll learn about the top benefits of virtual bookkeeping for small businesses and how to find the right solution for your needs.  

If you want to improve your small business’s accounting, Haven offers virtual bookkeeping and accounting services for small businesses. Our team of experienced professionals is here to help you manage your financials so you can focus on what matters most—your business.

What is Virtual Bookkeeping?

Virtual bookkeeping is a modern approach to managing a company’s financial records without an in-house bookkeeper. Instead, businesses outsource their bookkeeping tasks to qualified professionals who work remotely. These virtual bookkeepers use secure, cloud-based accounting software and digital communication tools to perform the same functions as an on-site bookkeeper, often with greater flexibility and cost efficiency.

How Virtual Bookkeeping Works

1. Data Collection

The process begins with the business providing financial documents such as:

• Receipts
• Invoices
• Bank statements
• Payroll records

These are uploaded to secure cloud-based platforms, giving the bookkeeper real-time access to the data needed to keep the books up to date.

2. Transaction Processing

The virtual bookkeeper uses cloud accounting software to categorise transactions, reconcile bank accounts, and maintain the general ledger. This includes tracking:

• Income
• Expenses
• Liabilities
• Assets

3. Financial Reporting

Once the data is processed, the virtual bookkeeper generates key financial reports regularly. These may include:

• Profit and loss statements
• Balance sheets
• Cash flow reports

These insights help business owners make informed financial decisions.

4. Ongoing Communication

Virtual bookkeepers communicate regularly with clients via email, phone, or video meetings. This ensures that any questions or issues are addressed promptly and that business owners clearly understand their financial position.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
• Outsource Bookkeeping for Small Business

Top 9 Benefits of Virtual Bookkeeping for Small Businesses

1. Cut Costs Right Away with Virtual Bookkeeping 

When a business switches to virtual bookkeeping, it often sees a significant drop in operational expenses. No more office space dedicated to a full-time bookkeeper, no more utility bills, no more benefits to pay. Instead, you get a flexible, remote solution that can scale with your business. And the money you save? You can reinvest in your company’s growth. 

Virtual bookkeeping also uses the latest technology to help reduce errors and improve financial processes. You’ll get accurate, timely financial data that you can use to make informed decisions about your company’s future.   

2. Flexibility to Match Your Business’s Unique Needs 

Virtual bookkeeping services don’t operate on a rigid 9-to-5 schedule. Instead, they offer a level of flexibility that can match the unique rhythms of your business. Whether you operate internationally with multiple time zones to consider or have non-traditional hours, virtual bookkeeping can seamlessly integrate with your operations. 

You can access your financial data anytime, anywhere. Need to pull a report at 3 a.m. before a big investor meeting? No problem. Virtual bookkeeping makes it possible.   

3. Access to More Diverse Bookkeeping Expertise

When you hire a local bookkeeper, your talent pool is limited to your geographical area. Virtual bookkeeping opens up a world of possibilities. You can work with experts with niche skills, diverse perspectives, and rich experience. This is especially beneficial for companies in specialized industries that require unique financial management.   

4. Advanced Technology to Ensure the Security of Your Financial Data

Virtual bookkeepers are tech-savvy. They stay up-to-date on:

• Financial management software
• Tools
• Processes

When you partner with a virtual bookkeeping service, you can be confident that your sensitive financial data is protected with the most advanced security features.  

5. A More Sustainable Approach to Bookkeeping for Everyone

Virtual bookkeeping significantly reduces paper usage. No more printing out financial statements, invoices, and reports. Less paper means a smaller carbon footprint, and it also reduces clutter in your office.   

6. Access Your Key Business Financial Data Anywhere, Anytime 

With virtual bookkeeping, you can access your financial data from any device with an internet connection. Whether at home, in the office, or traveling, you can gather the information you need to make informed decisions about your business.

7. Better Prognosis for the Future

Online bookkeeping keeps your critical financial records up to date. By removing risk variables from your investment plans, these records might assist you in examining your current financial situation. Online bookkeeping businesses offer services that are so trustworthy and competent that you may use them effectively to make vital future judgments.  

8. Faster Invoicing

Online bookkeeping can help you send invoices to commercial organizations more quickly. Completing these duties on schedule is critical to keep a business’s cash flow flowing. Online bookkeeping helps accomplish this. A firm can increase its operational speed by collecting payments more quickly. The company’s financial development may benefit from this.   

9. Faster Growth

Outsourcing bookkeeping services enables you to trade in the stress and time spent on the books for more peace and more hours to expand your company. Utilizing online bookkeeping services for a small business also ensures you spend less time on staff management and training.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

How To Implement Virtual Bookkeeping for Your Business

To start, you must find a virtual bookkeeping service that fits your business’s size, industry, and financial needs. You may only require basic monthly reports if you're a small business. Larger companies often need real-time financial insights. Either way, your provider should align with your specific goals. 

Look for a provider with experience in your industry and one that uses accounting software compatible with your existing systems. Don't forget to consider the provider's data security protocols and pricing models. 

Setting Up Tools and Systems for Virtual Bookkeeping

Once you’ve selected a virtual bookkeeping provider, work with them to integrate the necessary systems. This usually includes cloud-based accounting software like:

• QuickBooks Online 
• Xero
• Communication platforms
• Secure document-sharing tools

Your provider may also help you set up automated workflows for expense tracking, invoicing, and bank reconciliations. Be sure to accurately migrate any existing data and properly configure all integrations with your current systems, such as payroll or point-of-sale platforms. 

Defining Processes and Access Levels for Virtual Bookkeeping

Next, establish transparent processes for sharing, reviewing, and approving financial documents. Set user access permissions based on team roles to protect sensitive data while allowing relevant team members to view the necessary information. Also, create a routine schedule for financial reports, check-ins, and communication with your bookkeeper. 

Training Your Team on Virtual Bookkeeping

Even though your internal team won’t be doing the bulk of the bookkeeping, they need to understand the new system. Provide training on uploading receipts, approving transactions, generating reports, and communicating with the virtual bookkeeper. It’s also helpful to designate a point person to liaise with the bookkeeping provider to facilitate collaboration. 

Monitoring Your Virtual Bookkeeping System for Success

After implementation, monitor how your new system is performing. Are reports delivered on time? Is your team saving time? Are there any data gaps or communication issues? Work with your provider to make necessary adjustments and ensure the service continues to meet your expectations. 

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Unlock Savings and Support with Our Expert CPA Services

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline—all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping with our accounting services for small businesses.

9 Tools To Streamline Bookkeeping Services

1. Haven: Accounting Services for Small Businesses That Founders Build for Founders 

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Expert CPA Support for Startup Tax Savings and Compliance

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping. 

2. Xero: AI-Driven Features That Automate Critical Tasks

Xero’s bank reconciliation capabilities go beyond basic automation. It not only automates the process of matching bank transactions with your financial records but also offers AI-driven expense categorisation. On top of that, Xero provides cash flow predictions to help you anticipate your financial needs and make strategic decisions. 

3. QuickBooks Online: Efficient Expense Categorization and Bank Reconciliation

QuickBooks Online offers efficient features that streamline bank reconciliation and automate expense categorization. While it lacks cash flow prediction features, it is reliable for automating data entry and managing expenses efficiently. 

4. FreshBooks: User-Friendly Interface for Small Businesses and Freelancers

FreshBooks focuses on user-friendliness with an intuitive interface and automated invoicing, expense tracking, and time management. While it lacks advanced bank reconciliation and cash flow prediction features, it is a solid option for small businesses and freelancers seeking simplicity. 

5. Zoho Books: Versatile Bookkeeping for Evolving Business Needs

Zoho Books offers standard bank reconciliation and automated expense categorisation. It lacks cash flow prediction features but provides the flexibility to adapt as your transaction volume grows.

6. Sage Business Cloud Accounting: AI-Powered Expense Tracking and Bank Reconciliation 

Sage Business Cloud Accounting offers AI-powered expense tracking and bank reconciliation features with an intuitive interface. It lacks cash flow prediction features but is accessible to users of all backgrounds. 

7. KashFlow: AI-Driven Automation for Startups 

KashFlow leverages AI to streamline invoicing, expense tracking, and financial reporting. It is especially suitable for startups and small businesses seeking straightforward bookkeeping. 

8. Less Accounting: Basic Accounting Features for Small Businesses

Less Accounting offers income and expense tracking, invoices and proposals, mileage tracking, reports, and double-entry accounting. It also integrates with financial institutions.

9. Kashoo: Simple Accounting for Small Businesses

Kashoo provides basic accounting features such as bank imports, reporting, invoices, expense reporting, cash flow, payroll integrations, tax reporting, and data exports. It is ideal for businesses that do not need inventory management.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Organizing Small Business Bookkeeping
• Bookkeeping Packages for Small Business
• Bookkeeping Services for Startups
• Bookkeeping Services List
• Best Bookkeeping Services
• Best Accountant for Small Business
• Best Outsourced Bookkeeping Services

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When you’re building a startup, you have to focus on growth. Yet, the daily operations of bookkeeping and tax compliance don’t just disappear. They become critical tasks that either help your business take off or bring it crashing down.

Comprehensive Financial Services Tailored for Growing Businesses

At Haven, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. Our team comprises founders and financial experts who understand the unique challenges of growing businesses. 

We work behind the scenes to manage your financial runway so you can focus on building your business and taking it to new heights. 

Access 24/7 Slack Support From CPAs Who Understand Growth Challenges

When you partner with Haven, you’re not just getting a virtual bookkeeping service. You’re gaining a dedicated team of financial professionals committed to helping you succeed. We provide 24/7 Slack support to ensure you get the answers you need when you need them. Our team is experienced in the startup world and can help you navigate the complexities of growth, so you don’t have to do it alone.

Join 400+ Startups Who’ve Saved Millions in Tax Credits and Countless Hours of Administrative Work

You’re not the only one facing the challenges of startup growth. Over 400 businesses have turned to Haven for help with their financial operations. They’ve saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline. Our virtual bookkeeping service allows you to focus on your business while we handle the financial details that can make or break your success. 

Book a call today to discover how our dedicated team can help you build rather than bookkeeping.

Small business owners often struggle between managing day-to-day operations and keeping track of their finances. The benefits of hiring a bookkeeper illustrate why this split focus is a problem. When you outsource bookkeeping, you get a dedicated professional who can help you make sense of your financials so you can confidently run your business. This article will walk you through how to outsource bookkeeping for your small business and what to expect along the way to help you get started.   

Haven's accounting services for small businesses can help you achieve your goals by providing expert bookkeeping support tailored to your unique needs.

Benefits of Outsourcing Bookkeeping for Small Businesses

You may have considered having an in-house bookkeeper or outsourcing your accounting work as a business owner. More than one-third of businesses outsource their accounting work. Managing all accounting operations in-house isn't ideal for cost efficiency. 

1. You Get Bookkeeping Solutions That Can Scale With Your Business

Your bookkeeping solution will need to scale as your startup grows and evolves. Because most outsourced bookkeeping teams have access to experts on multiple topics, they can easily accommodate your changing bookkeeping needs. 

Scaling Finance Support

At first, your startup may need someone to manage your accounting software and perform routine bookkeeping tasks. As your finances become more complex and you need extra support, many finance firms that offer outsourced bookkeeping also have the expertise to provide advanced accounting and CFO services and experience across different business verticals.

Growth and Bookkeeping Limitations

While a part-time or in-house bookkeeper may keenly understand your type of business, you may face hurdles as your business expands. A part-time bookkeeper may not have the skill set to accurately set up the bookkeeping systems required to support a new business area. You may have to hire another bookkeeper to cover the new aspects or find a different bookkeeper who can do both. 

2. You Get More Expertise for Your Money

Finding a high-quality bookkeeping expert in your business vertical can be challenging, and hiring a less experienced bookkeeper at an hourly rate is tempting to save money. Many businesses switched to outsourcing bookkeeping after missing out on opportunities because their part-time bookkeeper was unfamiliar with their industry’s requirements. 

When you work with an outsourced bookkeeping firm, you get the advice and oversight of their senior bookkeepers and experts in your vertical without the cost of hiring individually. 

3. You Get Full-time Bookkeeping Access

The time a part-time bookkeeper will dedicate to your account is set in their contract; outside of these hours, they likely have other clients. This can be a problem if your bookkeeper is unavailable when time-sensitive bookkeeping tasks (such as responding to customer requests or delivering up-to-date financial reports during a fundraising process) arise. You may end up waiting days for a response.

You can contact the team anytime during regular business hours when you work with an outsourced bookkeeping solution. Some solutions even offer extended hours to get answers to your questions, no matter the time.

Flexible Workload Capacity

In addition to having less restrictive contact hours, outsourced bookkeeping solutions can be more flexible about the amount of work required each month. As your transaction volume increases or business finances become more complex, the bookkeeping may become more than a part-time bookkeeper can tackle. Nevertheless, the work may not require a full-time or in-house bookkeeper. 

4. You Get Access to Better Bookkeeping Technology

One of the biggest challenges for any business is keeping up with the latest technology. As a business owner, you're already stretched thin, and the last thing you want to do is spend your time and money trying to figure out how to use or pick bookkeeping software. That's where an outsourced bookkeeping service can help.

Alternatively, if you work with an in-house or part-time bookkeeper, you must explore bookkeeping and accounting software independently. Whoever you hire will then use that software vs. coming to the table with their platform. 

Technology Guidance and Implementation

If you don’t already have software, a bookkeeping service has the expertise to help you find the right technology to save you time and money. As a full-service team, they have experience working with various platforms and will know which is best suited for you. 

5. You Get Better Equipped for Tax Season

Whether you work with a part-time bookkeeper or an outsourced accounting service, your bookkeeper will lay the groundwork for a smooth tax preparation and filing experience. Having a team of bookkeepers can help here. They’ve likely had extensive experience preparing business taxes and will have the bandwidth to organize your books. 

Tax-Ready Financial Records

Bookkeeping services will ensure that your expenses and transactions for the tax accountant to process are correctly:

• Categorized
• Documented
• Organized
• Readily available 

When your bookkeeping service delivers the tax packet, the accountant won’t need to waste time looking for missing financial information or sorting inaccuracies. You can be confident that you won’t leave money on the table.

6. Saves Operating Costs

Outsourcing helps you save costs on hiring full-time or part-time bookkeepers. In-house bookkeepers charge from 35,000$ to 55,000$ a year. You only pay for the accounting services you need when outsourcing the work. This helps your company save 40% to 60% on overall revenue.

Hiring an employee involves more costs than just payroll services. The other expenses include:

• Insurance
• Training
• Benefits
• Recruiting

Reduced Personnel Overhead

Someone in your business will have to devote time to training a bookkeeper. You will need a person to cover sick leave and public holidays for the bookkeeper. When total personnel costs are calculated, outsourcing bookkeeping is a cost-saving option. Instead of allocating funds towards bookkeeping, you can spend them on essential employees. 

For instance, if you own a car maintenance shop, hire more mechanics. This will decrease wait time and improve productivity.

Related Reading

• What Is Included in Bookkeeping Services
• Common Bookkeeping Mistakes
• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
• Basic Bookkeeping for Small Business
  
• Benefits of Virtual Bookkeeping

5 Types of Outsourced Bookkeeping Services

1. Virtual Bookkeepers

Virtual bookkeepers work remotely, utilizing cloud-based tools such as QuickBooks Online, Xero, or NetSuite to manage your financial records. This arrangement is ideal for tech-savvy businesses looking to cut costs and streamline their accounting processes. Virtual bookkeepers typically offer predictable pricing and can seamlessly integrate into your existing workflows to provide real-time financial data. 

2. Part-Time Bookkeepers

Part-time bookkeepers offer flexible support by the hour or several days each month. They handle essential bookkeeping tasks like:

• Transaction recording
• Bank reconciliations
• Managing accounts payable and receivable

This option is perfect for small businesses that don’t require full-time bookkeeping but need consistent and accurate financial records.

3. Full-Service Accounting Firms

Full-service accounting firms provide comprehensive financial management, covering daily bookkeeping and extending to:

• Payroll
• Tax preparation
• Economic forecasting
• Compliance reporting

‍Haven is an example of a full-service firm that caters to startups and high-growth companies. 

4. Project-Based Bookkeeping Services

Project-based bookkeeping services are designed for businesses that need help with specific financial events, such as:

• Audits
• Year-end reporting
• Tax season

They are also helpful in transitioning between accounting systems or cleaning up historical financial data. This model allows companies to access expert bookkeeping assistance without committing to ongoing support. 

5. Industry-Specific Bookkeeping

Some bookkeeping providers specialize in specific industries, such as:

• Healthcare
• Real estate
• E-commerce

These firms understand the unique financial trends, reporting formats, and regulations that affect businesses in their niche. Their expertise allows them to offer tailored insights and maintain compliance more efficiently. Let your business take flight while Haven manages your financial runway.

Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Expert Support and Savings

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline—all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

How To Choose the Right Outsourced Bookkeeping Provider

You will want to find a bookkeeper with experience working with businesses in your industry. They should understand the financial nuances of your industry and be familiar with any regulations that may affect your business.

Industry-Specific Experience Matters

For example, if you are a retail business, your bookkeeper should know how to manage sales tax and be comfortable working with point-of-sale systems. Ask the applicant about their experience with businesses like yours. Have they worked with companies that are about the same size and have the same number of employees?

This will help ensure they can hit the ground running and help your business avoid costly mistakes.  

Local or Virtual: What’s the Best Option for Your Business?  

Outsourced bookkeeping for small businesses can be done remotely. You may not need to find someone in your geographic area. Nevertheless, there are some advantages to hiring a local bookkeeper. For one, they will better understand local business laws and tax regulations that can affect your company.

Local Market Insight and Compliance

They can also provide financial guidance based on their knowledge of the local market and help you find ways to increase revenue. If you choose to go with a virtual bookkeeper, ensure they have experience working with businesses in your industry and understand any compliance regulations that apply to your company.  

Credentials and References Matter When Choosing a Bookkeeper  

You want to hire someone qualified to handle your business finances. Ask about their training and real-world experience. Do they have any type of certification? Two examples of bookkeeper certification include:

• The Certified Public Bookkeeper license, accredited by the National Association of Certified Public Bookkeepers 
• Certified Bookkeeper, accredited by the American Institute of Professional Bookkeepers. 

Importance of Due Diligence and Trust

Ask the applicant to provide professional references. This will help you gain insight into their work ethic and reliability. Remember, you must trust the person managing your business finances. They will have access to all financial records. Even the most experienced bookkeeper can mess up your records or embezzle money.  

Software Compatibility Is Key for Outsourced Bookkeeping for Small Businesses  

Before hiring an individual, ask what accounting software they use. If you already have a software package you prefer, will they use it? If not, will you have administrative rights to their software? You must maintain access to your financial information. All accounting files must remain clear and transparent for your protection.

Find a Bookkeeper With Tax Experience  

Over the life of your business, taxes can have a compounding effect on your income. Thus, you must decrease and align your tax burden with tax laws. This will help you reach financial goals quicker. Make sure that your bookkeeper is well-versed in all tax law changes. They should guide you in creating the best tax-efficient structure for your company.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

Steps To Successfully Outsource Your Bookkeeping

Identify Exactly What Bookkeeping Duties You Need Help With 

Outsourcing bookkeeping for small business purposes can be a game-changer. Before you start looking for a capable bookkeeping service or professional, it's essential to pinpoint the specific tasks you want to hand off. 

Are you seeking assistance with invoicing, accounts payable and receivable, bank reconciliations, or just keeping your financial records current?Knowing precisely what you need will help you find the right expert to manage those duties.  

Set Clear Expectations Before You Begin 

Once you know what bookkeeping tasks to outsource for your small business, establish a clear plan for how you want the process to work. For example, how often do you want updates from your outsourced bookkeeping team? What types of reports do you want to receive, and how often? 

Setting these guidelines before you hire anyone will help you get organized and ensure a smooth transition once you start working with your new team or individual.  

Find a Good Fit Based on Experience and Reliability 

When searching for a bookkeeping service, look for candidates with experience working with businesses like yours. For instance, if you’re a small business in the construction industry, find a bookkeeping service specializing in construction accounting. You’ll also want to consider their reliability and accuracy. 

Look for reviews and testimonials from past clients to gauge their attention to detail and customer service.

Factors That Make Up the Costs of Bookkeeping Outsourcing

Company Size and Stage Influence Bookkeeping Costs

The size and stage of your business impact how much you’ll pay to outsource bookkeeping. A small, early-stage business with simple financials will require less support than a growing company with:

• Multiple revenue streams
• Departments
• Locations

As your business scales, your bookkeeping needs become more involved, raising costs.

Monthly Transaction Volume Affects Pricing

The number of transactions processed each month, such as sales, expenses, transfers, and deposits, affects the time a bookkeeper needs to spend reconciling your accounts. A higher volume means more entries to categorize, match, and validate, which increases the cost.

Number of Employees Can Raise Fees

If your bookkeeper also supports payroll, the number of employees on your team will influence your pricing. Larger teams usually mean more:

• Payroll runs
• Benefits tracking
• Employee reimbursements to process

Payroll Processing Method Matters

How your payroll is handled, manually or through integrated software, can affect your bookkeeping fees. Manual processes usually require more hands-on time, while a streamlined, automated payroll system can help reduce effort and cost.

Expense and Payment Accounts Add Complexity

The number of credit cards, bank accounts, and bills you manage adds to bookkeeping complexity. Each account must be reconciled, and every bill must be logged, categorized, and monitored, primarily if multiple due dates or vendors exist.

Balance Sheet Accounts Require Reconciliation

Each balance sheet account (such as loans, prepayments, assets, or retained earnings) requires monthly reconciliation. More accounts mean more work and, therefore, higher fees.

Invoicing Requirements Impact Costs

If your outsourced bookkeeper manages customer invoicing, the volume and frequency of invoices can impact pricing. Businesses with recurring billing cycles or complex payment terms often require more detailed tracking and follow-up.

Internal Systems Can Help or Hinder Efficiency

How you’ve set up your internal policies, systems, and procedures—such as approval processes, accounting software integrations, and documentation standards—can either streamline or complicate outsourced bookkeeping. The more manual or fragmented the setup, the more time-consuming it is for your bookkeeper to manage.

Reporting Needs Affect Pricing

The level of financial reporting you require plays a role in bookkeeping fees. If you only need basic monthly reports, the workload is minimal. But if you need customized dashboards, investor updates, or multi-entity consolidation reports, that adds to the time and skill required, affecting the cost.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When you outsource bookkeeping for a small business to Haven, you get a team that knows the startup world. We’re not just small business bookkeepers. We’re startup bookkeepers and fractional CFOs with firsthand experience in the trials and triumphs of early-stage companies. We understand your unique challenges and can help you overcome them with tailored financial strategies that evolve as your business grows.

Tax Credits That Put Money Back in Your Pocket

Startups often miss out on valuable tax credits that significantly improve their cash flow. Haven’s team of experts will help you identify and qualify for R&D tax credits and other incentives to help you fund your innovation and growth. We’ve helped over 400 startups save millions in tax credits, and we can do the same for you.

24/7 Support From Real People

When you outsource bookkeeping for a small business to Haven, you’ll get access to our dedicated team via Slack. We’re available around the clock to answer your questions and provide the financial support you need to make informed decisions. This is especially helpful for startups operating outside traditional business hours or having remote teams in different time zones.

Save Time and Reduce Stress

Outsourcing your bookkeeping to Haven allows you to focus on building your business instead of crunching numbers. We’ll handle everything from daily bookkeeping to complex tax filings so you never have to worry about missing a deadline or losing track of your financials. 

Related Reading

• Pros and Cons of Outsourcing Accounting Services
• Bookkeeping Services List
• Organizing Small Business Bookkeeping
• Best Accountant for Small Business
• Bookkeeping Services for Startups
• Bookkeeping Packages for Small Business
• Best Outsourced Bookkeeping Services
• Best Bookkeeping Services

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Running a small business is tough. You’re juggling a mountain of responsibilities, and keeping your financial records in order is just one more thing to worry about. Yet, accurate bookkeeping is crucial to your business’s success. Poor financial management can lead to business failure, and the stress of not knowing where your business stands financially can be overwhelming. If this sounds familiar, you’re not alone. Many small business owners struggle with bookkeeping. The good news is, you don’t have to tackle it alone. There are benefits of hiring a bookkeeper to help get your financials in order. 

This article will explore bookkeeping basics for small businesses and how accounting services for small businesses can help you manage your accounts. 

Why Do Small Businesses Need Bookkeeping?

Whether you’re running a solo operation or managing a growing team, you need a way to:

• Track money
• Make informed decisions
• Stay compliant with tax and reporting requirements

Bookkeeping isn’t just part of that process; it’s the foundation of financial success. 

Create Organized and Detailed Financial Reports

Accurate bookkeeping allows you to generate reliable financial statements, such as:

• Income
• Balance
• Cash flow statements

These reports help you understand your business's status and give investors or lenders insight into its potential. 

Understand Business Transactions

Recording and reviewing your financial transactions regularly helps you visualize how money moves through your business, making it easier to control expenses and income. 

Make a Plan for Profitability

You can’t improve what you don’t measure. You can track your revenue, monitor cash flow, and build a reliable growth plan with consistent bookkeeping. It also helps you pivot quickly when things change. 

Basics of Bookkeeping for Small Businesses

Bookkeeping is the foundation of every financially healthy small business. It involves recording, organizing, and maintaining all financial transactions to ensure that your records are accurate, your taxes are filed correctly, and your company complies with regulatory requirements. Here’s a thorough overview of how bookkeeping works, why it matters, and how you can do it effectively from day one.

Key Bookkeeping Terms Every Small Business Owner Should Know

Revenue

Revenue refers to all the money your business earns by selling goods or services. Some companies also generate revenue by selling assets they no longer need. It’s one of the primary figures to calculate your business’s profitability.

Accounts Payable

Accounts payable keep track of what your business owes to others. This includes suppliers, lenders, utility providers, or any third party you’ve agreed to pay later. Think of it as your company’s short-term debt that needs to be settled.

General Ledger

The general ledger is your business’s master accounting document. It contains all your financial transactions, grouped by account—like cash, sales, payroll, and rent—and serves as the basis for your financial reports, including your balance sheet and income statement.

Liabilities

Liabilities are the debts and obligations your business has. These could be anything from a loan and unpaid invoices to tax obligations. They represent money that will leave your business at some point.

Income Statement

The income statement shows your business’s financial performance over a specific time period. It summarises your revenue, cost of goods sold (COGS), and operating expenses to determine your net income or loss.

Capital

Capital is the money or other assets you invest in the business as the owner. This doesn’t include the profit your business generates, but the resources you’ve put into getting it off the ground or running it.

Accounts Receivable

This refers to the money owed to you by customers or other parties. If you’ve sent out invoices and are waiting to get paid, that amount sits in accounts receivable until it’s settled.

Journals

Journals are where every financial transaction is initially recorded before being moved to the general ledger. Each account, such as cash, sales, or expenses, will typically have its own journal for clarity and tracking.

Payroll

If you employ staff, payroll is how you handle their wages. It includes calculating pay, withholding taxes, paying benefits, and filing reports with the government. Payroll is a key part of staying compliant and maintaining good financial records.

Assets

Assets are valuable assets your business owns, such as cash, equipment, property, or inventory. These resources help you operate, grow, and earn revenue.

Bookkeeping

At its core, bookkeeping is the daily process of recording your financial transactions. It ensures your accounts are up to date, helps you manage cash flow, and forms the foundation for your financial reporting.

Depreciation

Over time, assets like vehicles or machinery lose value due to wear and tear. This reduction in value is known as depreciation, and it’s tracked to reflect the true worth of your assets.

Trial Balance

A trial balance checks that your books are mathematically correct. It summarises the balances of all your ledger accounts and helps ensure that total debits equal total credits before preparing financial statements.

Cost of Goods Sold (COGS)

COGS refers to the direct costs of producing the goods or services you sell, like materials, packaging, or manufacturing labor. It’s used to calculate your gross profit.

Equity

Equity is what’s left over after subtracting liabilities from assets. It includes your capital investment and retained earnings (profit that hasn’t been withdrawn). It represents your stake in the business.

Expenses

Expenses are the costs you incur to run your business, separate from COGS. These include rent, utilities, marketing, and software subscriptions, the overhead needed to keep things running.

Balance Sheet

The balance sheet offers a snapshot of your company’s financial position at a specific time. It shows what you own (assets), what you owe (liabilities), and what’s left over (equity).

Setting Up Bookkeeping for Your Small Business

Your small business needs a solid bookkeeping setup before you start sorting transactions or generating reports. These early decisions can shape how you organize expenses, report income, and manage your day-to-day records, so it pays to invest time in thinking about how you plan to handle these tasks now and when the business expands in the future.

1. Open a Business Bank Account

You must often separate business and personal finances, even if you’re the only person in your industry. Even when that’s not the case, having a dedicated business bank account for your self-employed activity can dramatically simplify tracking income and expenses and preparing your tax return. 

Vendors and lenders may also prefer to send or receive money from a business bank account for compliance purposes. 

2. Choose an Accounting Method

Your accounting method rules how and when your business records income and expenses. For a new small business, the decision between cash basis and accrual accounting can have far-reaching implications, and shapes everything from how you manage cash flow to how you generate financial statements. Locking this in early keeps you consistent as you start recording financial transactions.

3. Track Your Financial Transactions

Every payroll run, invoice, receipt, and bank statement counts, and keeping up with these transactions as they occur (rather than weeks later) is often the difference between a smooth reconciliation process and a pile of paperwork. 

Implementing a clear chart of accounts from the outset can help you set the expectation that the business records purchases or payments promptly and with supporting documents. 

4. Select Accounting Software

Accounting software can streamline some of the more time-consuming aspects of bookkeeping by automating specific routine tasks, like recurring entries. Some tools also proactively flag discrepancies or offer standardized financial reporting. When deciding which tool to use, focus on your business’s needs now and in the future. 

Upgrading to a new tier often means less expense and headache than migrating to a different tool entirely. 

How to Do Bookkeeping for Small Businesses: 4 Steps

Managing bookkeeping for your business might initially feel overwhelming, but it mostly comes down to following a consistent process. Once you understand the accounting cycle, you’ll likely find that bookkeeping is less about crunching numbers than managing information.

1. Collect Your Financial Records

Start by gathering every document that shows how money moves through your business:

• Invoices
• Receipts
• Bank statements
• Anything tied to income or expenses

Centralizing these records, physically or electronically, helps you stay organized and ready for tax season and everyday financial decision-making. 

2. Organize Your Business Transactions

Next, you’ll need to categorize your transactions by sorting them into your chart of accounts, such as accounts payable, accounts receivable, payroll, and business expenses, and recording them in your general ledger. A good setup ensures that every entry lines up with a specific business activity and gives structure to your financial reports. 

3. Match and Verify Transactions

This is when you reconcile your bank account activity with what’s recorded in your books. Make sure every debit and credit is accounted for and matches supporting documents. Spotting and correcting errors at this stage keeps your final financial statements accurate. 

4. Generate Financial Statements

Once each transaction is sorted and verified, you can produce your core financial reports: your balance sheet, income statement, and cash flow statement. Together, these reports offer a big-picture insight into the economic health of your business and can help you make informed decisions when budgeting or planning for economic growth. 

Haven Manages Your Financial Flight Path

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Expert Financial Support, Around the Clock

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

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Small Business Bookkeeping: How To Avoid Getting It Wrong

Effective bookkeeping is the cornerstone of every successful business; getting it wrong can have dire consequences, mainly potentially serious cash flow issues. As a result, business owners must ensure that a professional carries out regular bookkeeping to ensure their numbers are up to date and nothing is missed.

Disregarding the Small Charges

You’d be surprised at what minor expenses you can claim tax relief on. As the old saying goes, look after the pennies, and the pounds will look after themselves. Not keeping track of smaller transactions will soon catch up with you. Staying tax-efficient and planning is the cornerstone of every great business, and getting tax advice early on can be huge for helping you save money.

Not Checking Your Work

Bank reconciliation is crucial. Failing to do so will mean money slips through the cracks, which, as mentioned, can lead to serious cashflow issues. If you’re struggling with bookkeeping and making repeated errors, apps like Xero and Sage can automate most of this. Nevertheless, it’s still wise to get help from an accountant, as although apps help keep track, an accountant who knows their stuff is the honest answer to eliminating any unnecessary errors.

Entering Data Twice

A common mistake is the double entry of an expense or sale. This is why you need to double-check your books through bank reconciliation, and we’ll keep saying it till we’re blue in the face. An accidental double entry can be easily noticed and resolved, but failing can leave you with incorrect financial figures.

But as mentioned earlier, often, the best way to avoid these things is to give control to a bookkeeper or an accountant who does your bookkeeping for you.

Outsourcing Small Business Bookkeeping

If you're running a small business and struggling to keep up with your books, outsourcing your bookkeeping might be your most brilliant move. It’s not just about saving time — it’s about ensuring your records are accurate, current, and ready whenever needed.

Scalable Bookkeeping Solutions

Outsourced bookkeepers can offer various services to match your current needs and budget. You might begin with basic transaction tracking and bank reconciliations, then scale up to monthly financial reports, invoicing support, payroll, and financial planning advice as your business grows. 

The Benefits of Flexible Outsourcing

The flexibility means you only pay for what you need, when you need it, and there’s no overhead cost of hiring in-house staff. It also reduces the risk of errors that could lead to compliance issues or missed tax deductions. With a trusted provider, you’ll gain clarity over your cash flow, better insight into performance, and more time to focus on your core business goals.

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Which is More Important Right Now, a Bookkeeper or an Accountant?

When running a small business, it is critical to keep a close eye on your daily financial transactions. Bookkeepers record these transactions, track expenses, and manage accounts receivable and payable. They also reconcile bank statements to ensure your financial records match your actual bank balances. 

You won’t have a clear picture of your cash flow or financial position without accurate and timely bookkeeping. This makes it difficult to:

• Make informed decisions
• Pay taxes correctly
• Know if your business is profitable 

Accountants Interpret the Data and Provide Insights

Once your bookkeeper has organized your financial data, an accountant can:

• Prepare financial statements
• Advise on tax strategy
• Ensure regulatory compliance
• Help you with strategic planning

Accountants bring value in areas where a bookkeeper doesn’t operate. They provide insight and recommendations that help you grow or protect your business. 

Many Firms Offer Integrated Services

If you’re outsourcing your financial functions, many firms now offer integrated services, where bookkeeping, payroll, and accounting are bundled together. This can be more efficient and cost-effective than hiring separately, ensuring consistency and accuracy across your financial processes. 

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When running a startup, you want to focus on growing your business without getting bogged down with financial management. Haven understands startups' unique challenges because they are founded by entrepreneurs who have been in your shoes. Let your business take flight while Haven manages your financial runway. 

Comprehensive Financial Solutions for Startup Growth

Haven handle everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket and fractional CFO services. Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today and discover how our dedicated team can help you focus on building rather than bookkeeping.

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• Bookkeeping Services List
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• Best Bookkeeping Services

‍

When managing your business's finances, understanding the different types of bookkeeping services can help you find the right fit for your needs. Whether you’re looking to handle your accounting in-house or outsource it to a professional, knowing the options available can help you make an informed decision. This article will explain the various bookkeeping methods and how they can benefit your business. We'll also explore the benefits of hiring a bookkeeper, including improved accuracy, time savings, and peace of mind. If you’re looking to learn about the types of bookkeeping services for businesses, you’ve come to the right place.

At Haven, we offer accounting services for small businesses. Our team can help you manage your finances so you can focus on running your business. We can also help you understand the different types of bookkeeping services and how they can benefit your operation. 

5 Types of Bookkeeping Services For Businesses

1. In-House Bookkeeping 

Hiring an in-house bookkeeper means adding an employee to your team who handles your financial records daily. This individual works on-site and becomes part of your internal operations. Medium to large businesses with complex financial activities may benefit from this approach. 

You'll get someone who knows your systems and processes, and can be available at a moment's notice. Nevertheless, this option comes with higher fixed costs, and if your bookkeeper is unavailable for any reason, it could disrupt your financial management.  

2. Outsourced Bookkeeping  

When you outsource bookkeeping, a third-party company or freelance professional manages your financial records remotely. Small and midsize businesses often choose this option as it provides access to expert knowledge without the expense of hiring an employee. Outsourced bookkeepers bring their tools and can help you implement best practices. 

While you may have less control over your financial data, clear communication can help ensure a smooth working relationship.  

3. Virtual Bookkeeping

Virtual bookkeeping is a subset of outsourced bookkeeping. The difference is that virtual bookkeepers use cloud-based software to update your financial records in real time. This option is ideal for businesses prioritizing remote work, automation, and access to financial data at any time. 

If you opt for virtual bookkeeping, ensure your team has the digital skills to work with these professionals. Data security is also a concern, so establish protocols to protect your information.  

4. Full-Service Bookkeeping  

Full-service bookkeeping covers all aspects of financial recordkeeping, from bookkeeping to tax preparation. Firms that offer this service often provide accounting, payroll, budgeting, compliance, and other financial support. This option is best for established businesses that need a strategic approach to economic management. 

While full-service bookkeeping can be more expensive, it may save you money in the long run by reducing the need to coordinate multiple service providers.  

5. Part-Time or Freelance Bookkeeping  

If your business has seasonal or straightforward bookkeeping needs, hiring a freelance bookkeeper part-time may be the right choice. This option is also best for sole proprietors and startups that don’t have the resources to manage their books full-time. Freelance bookkeepers offer flexible terms with no long-term commitments. 

Remember that this option may not provide the continuity or infrastructure needed for complex financial situations.

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What is Included in Bookkeeping Services?

Bookkeeping services are the backbone of a business’s financial management. They involve systematically recording, organizing, and maintaining financial transactions and data. At its core, bookkeeping provides the accurate, up-to-date records you need to:

• Assess your company’s financial health
• Meet legal obligations
• Make informed decisions 

Whether a startup, small business, or growing enterprise, having a bookkeeper ensures your finances are in good order.

Here’s a breakdown of what’s typically included in professional bookkeeping services:

1. Recording Financial Transactions

At the heart of bookkeeping is the consistent tracking of income and expenses. This involves categorizing transactions—how much money your business earns, who’s paying, how much you spend, and what you spend it on. Bookkeepers ensure every transaction is entered correctly in your accounting system, whether it’s software like:

• QuickBooks
• Xero
• NetSuite

Keeping these records accurate and up-to-date helps you maintain visibility into your financial performance.

2. Bank and Credit Card Reconciliation

Reconciliation means comparing your business’s records with bank and credit card statements to identify discrepancies. This process ensures every transaction line up and nothing is missing, duplicated, or misclassified. Bookkeepers perform these checks regularly to address errors or fraudulent charges quickly.

3. Managing Accounts Payable and Receivable

Bookkeepers keep your cash flow steady by managing both outgoing and incoming payments. They handle accounts payable by tracking what your business owes to vendors and making sure payments are made on time. They also manage accounts receivable by sending invoices to customers and following up to ensure payments come in promptly. 

This reduces delays, improves vendor relationships, and helps maintain healthy business operations.

4. Payroll Processing

If you have employees, payroll isn’t just about cutting checks—it includes calculating wages, withholding the correct taxes, and ensuring compliance with labor laws. Bookkeepers can run payroll or work alongside payroll software, handling everything from salary disbursement to tax reporting. Some bookkeepers also help with benefits tracking and employment records.

5. Financial Reporting

Bookkeepers generate financial statements like:

• Profit and loss (P&L) statements
• Balance sheets
• Cash flow reports

These reports offer insight into business performance, showing whether you’re operating at a profit, how much debt you have, and where your cash is going. Consistent reporting supports better budgeting, forecasting, and strategic planning.

6. Tax Preparation Support

Bookkeepers don’t prepare or file taxes, but lay the groundwork by organizing and maintaining tax records throughout the year. They collect receipts, track deductible expenses, and ensure accurate financial activity records. When it’s time to file, your accountant has everything they need, without chasing down documents at the last minute.

7. Expense and Budget Management

Bookkeepers help manage operational costs like:

• Software subscriptions
• Utilities
• Travel expenses
• Office supplies

They monitor these expenses against your set budget to keep spending in check. If any category starts to overrun, they can flag it early so you can course-correct.

8. Inventory and Asset Management

Bookkeepers can track inventory levels and monitor fixed assets if your business manages stock or owns significant equipment. They also handle depreciation and amortization schedules, giving you a clearer picture of asset values over time. This data is essential for insurance purposes, audits, and long-term planning.

How Bookkeeping Services Drive Stability and Growth

Bookkeeping services provide the foundation for your financial processes. They ensure you stay:

• Organized
• Compliant
• Positioned to grow

Whether you manage everything in-house or partner with a bookkeeping firm, covering these core tasks helps you focus on confidently running your business.

What Are the Benefits of Organised Bookkeeping Services for Small Businesses?

The value of bookkeeping is also reflected in market growth. According to Business Research Insights, the global bookkeeping services market was valued at around USD 46.1 billion in 2024 and is projected to reach USD 97.3 billion by 2032, growing at a CAGR of 9.8%. 

This growth highlights how businesses worldwide recognize the importance of professional financial support, not just for compliance, but as a core driver of operational success.

1. Record the Financial Transactions

You must record the data. Since you’re a small business, you must record where you get the cash from and where it goes. Therefore, bookkeeping can assist you in the entire process. You can get the data to understand how much you invest in your supplies. You can also get an idea of how much you’ve earned. 

Proper record-keeping can prove extremely handy for resolving queries. It helps you stay connected with vendors, employees, and customers. If you have the data, you can quickly solve any query.

2. Legal Obligations

Businesses must keep a record of their tax returns and VAT returns. Businesses that fail to do so may suffer in the long run when they must submit the record to HMRC. It will help you understand whether the company pays the correct tax, wage, and National Insurance Contribution.

When you start bookkeeping for the business, you can ensure that all the data is up-to-date. It will assist you in the process of maintaining transactions. Therefore, you can remove discrepancies, especially when submitting the tax returns.

3. Prepare a Budget Accurately

Bookkeeping is essential for businesses of all sizes. Nevertheless, it is necessary for small businesses as it makes budgeting easier. You can review the costs and financial resources when your income and expenses are organized.

Crafting a Clear Financial Roadmap Through Accurate Budgeting

Budgeting can help you create a roadmap for how your business must proceed and prepare a plan for future expenses when everything is in place. Failing to maintain accuracy may prevent you from understanding the business's needs. When bookkeeping the company, you can create an accurate budget rather than depend on guesswork.

4. Helpful for Filing the Tax

Tax filing can be a stressful task, especially for small business owners. Nevertheless, this will become significantly easier when you start bookkeeping. Rather than going through many documents, bookkeeping will ensure you maintain the data in one place. 

You can stay ahead of your competition when your financial record is organised. So you can easily prepare the invoice. You can also identify what the write-offs will be.

5. Prepare Business Strategies

Preparing a business strategy is extremely important for small businesses. With the help of bookkeeping, you can work on implementing a better approach for your business. If you plan to expand your small business, you must have information about financial records.

Beyond Record-Keeping

Bookkeeping is one prominent recommendation for preparing the schedule. You can never plan your business strategy when you don’t know your business's financial status. Therefore, bookkeeping becomes an integral part of expanding the business.

6. Identify the Business Targets

After a certain point, every business aims to grow. Nonetheless, poor financial records will affect this and may prevent the company from growing. You can't analyze the growth goal without data on your business. When you start the guesswork, it can be a significant disappointment. You may not be able to hit the target. 

You can meet the business goals when you begin bookkeeping and maintain the financial records regularly. Therefore, you can move towards growth accurately.

7. Better Decision Making

Business information influences decision-making. Bookkeeping is crucial to getting accurate information for the business. When you start bookkeeping, you will have real data. As a result, you can focus on influencing growth, thereby driving more profit.

Leveraging Expert Bookkeeping for Organization and Expansion

Bookkeeping services help small businesses stay organized and compliant with tax regulations. They also provide accurate financial data to help you make informed decisions, prepare budgets, and develop growth strategies. If you’re looking for accounting services for small businesses, Haven can help. 

Our team of experts will manage your financial runway so you can focus on taking your business to new heights.

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Should I Do My Bookkeeping? 3 Questions To Ask Yourself First

Now that you have a clear picture of what bookkeeping entails, the next step is deciding whether to handle it yourself or bring in a professional. This decision hinges on three key considerations: your expertise, your time, and your budget.

1. Do You Have the Expertise?

Managing your bookkeeping requires more than basic familiarity with numbers. Even if you’ve taken a few accounting courses or handled personal finances well, business bookkeeping involves a deeper understanding of financial principles and compliance rules. You’ll need to be comfortable with:

• Double-entry accounting
• Financial statement preparation
• Expense categorization
• Tax deadlines and reporting requirements

If you're unfamiliar with local, state, and federal tax codes, managing the books might lead to errors, especially during tax season. Nonetheless, if you have a firm grasp of finance and are confident in staying compliant, you may be equipped to handle it in-house.

2. Do You Have the Time?

Bookkeeping can quickly become a time-consuming task, especially as your business grows. It requires:

• Routine updates
• Monthly reconciliations
• Tracking expenses
• Invoicing
• Preparing financial reports

As a business owner, your time is already split between multiple roles:

• Sales
• Marketing
• Operations
• Client management

If bookkeeping becomes just another task on an already packed to-do list, you risk letting things slip, which can create bigger problems down the line. Still, if you have the discipline to maintain your books consistently and the business is relatively small, doing your bookkeeping might be manageable.

3. Can You Afford to Outsource?

Cost is often a significant factor in deciding whether to outsource. Hiring a bookkeeper adds a recurring expense, but it can also deliver real value through saved time, greater accuracy, and better financial insight. Ask yourself:

• Can I afford a professional bookkeeper within my current budget?
• Would that money be better invested in another area of the business?
• What’s the cost of a potential mistake if I do it myself?

If you’re just getting started and your finances are straightforward, you may be able to handle it with the help of accounting software like:

• QuickBooks 
• Xero

When Investing in a Professional Bookkeeper Fuels Growth and Clarity

These platforms automate many of the day-to-day tasks and can serve as a temporary middle ground. But if your business is expanding or if financial complexity is growing, investing in a professional bookkeeper can give you peace of mind and allow you to focus on higher-value activities.

Recognizing When Professional Bookkeeping Becomes Essential for Informed Business Decisions

Bookkeeping isn’t just about keeping the IRS off your back—it’s a foundation for making intelligent, informed business decisions. It may work for now if you have the skills, time, and confidence. But if accuracy, efficiency, and financial clarity are priorities (as they should be), bringing in a professional could be one of your best investments.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven offers specialized bookkeeping services made for startup businesses. If you are a founder, you can focus on growing your business while Haven handles the various aspects of your financial records. They offer daily bookkeeping, complex tax filings, and R&D credits that help put money back in your pocket. 

How Fractional CFO Services Drive Startup Success

Their fractional CFO services provide high-level assistance to ensure your business’s financial health. Over 400 startups have worked with Haven, saving millions in tax credits and countless hours of administrative work. You’ll also have access to 24/7 Slack support from CPAs who understand the challenges of growing businesses. 

Schedule a call today to learn how Haven can help you focus on building your business rather than bookkeeping. 

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‍

Keeping your business finances in order is crucial to your success. But if you’re a small business owner, you likely have a long to-do list, and managing your books probably isn’t at the top. The benefits of hiring a bookkeeper include freeing time to focus on running your business. But what about the cost? This article will help you understand the average price of bookkeeping services for small businesses, so you can determine whether hiring a bookkeeper fits your budget.  

If you’re a small business owner looking to improve your financial processes, Haven can help. We offer accounting services for small businesses to help you get your financials in order, so you can focus on achieving your business goals.

Average Cost of Bookkeeping Services for a Small Business

The cost of bookkeeping services varies significantly depending on your needs. Basic bookkeeping services focus on compliance and organization, helping early-stage businesses stay on top of their finances and avoid penalties. These services include:

• Recording transactions
• Paying bills
• Processing payroll and more

Understanding the Comprehensive Value of Full-Service Accounting

Full-service accounting goes beyond these basics to provide financial reporting, cash flow analysis, strategic decision-making support, and other advanced services that clarify your business’s economic health. As you might expect, full-service accounting will cost more than basic bookkeeping.

In-House Bookkeepers: A Consistent But Costly Solution

Hiring an in-house bookkeeper may be the way to go if you want someone dedicated to your business’s finances. This option provides real-time access to financial information and ensures you have help when issues arise. 

According to the U.S. Bureau of Labor Statistics, the average salary for a full-time bookkeeper is around $47,440 per year, or about $3,950 per month. Remember, this doesn’t include the cost of:

• Employee benefits
• Payroll taxes
• Equipment
• Office space

Outsourced Bookkeeping: Flexible and Affordable

Outsourcing your bookkeeping to a third-party firm is one of the most popular options for small businesses, especially those looking to balance quality with cost. On average, outsourced bookkeeping services range from $300 to $2,000 per month, depending on the size of your business, the number of monthly transactions, and the services you need. 

The appeal of outsourcing lies in flexibility and expertise. You’re essentially gaining access to a team of professionals without the overhead of hiring full-time staff.  

Freelance Bookkeepers

Freelance bookkeepers offer another flexible and often affordable option. Their rates vary, but the U.S. Bureau of Labor Statistics lists the average hourly rate for bookkeepers at around $22.81 per hour. Freelancers often set their rates, so depending on experience and location, you could pay anywhere from $20 to $75 per hour. 

Hiring a freelancer can be smart if you don’t need full-time help but still want someone skilled to manage your books on a part-time or project basis. The bottom line is that how much bookkeeping will cost your business depends on your:

• Needs
• Preferences
• Growth plans

Whether managing the basics or stepping into more complex financial planning, understanding these options and what you’re getting for the price can help you choose the right path forward.

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Factors That Influence Bookkeeping Costs for Small Businesses

The cost of bookkeeping services varies depending on your business's size, the level of service you require, and the bookkeeper's experience. Let’s look at these factors in more detail so you know what to expect when budgeting for bookkeeping:   

Business Size

Naturally, a larger business will have more bookkeeping needs and transactions to manage than a small business. This will increase the cost of bookkeeping services. For example, a sole proprietor with a few monthly transactions will pay less for bookkeeping than a company with:

• Multiple employees
• Accounts
• Locations   

Service Level

Some small businesses only need basic bookkeeping, such as expense entry and bank reconciliations, while others require more complex services like:

• Payroll
• Cash flow management
• Financial reporting

The more services you need, the higher your bookkeeping costs will be.

Bookkeeper Experience

Like any other profession, more experienced bookkeepers charge higher rates than those just starting. Nevertheless, a professional bookkeeper can handle more complex tasks and provide valuable insights and advice to help you manage your business’s finances. If you’re looking for affordable bookkeeping, consider a less experienced bookkeeper or a small team specializing in serving businesses your size.  

Full-Service Financial Management

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Startup-Focused Expertise & Support

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping. 

How To Choose the Right Bookkeeping Solution

Know What You Need First

When deciding on a bookkeeping solution, the first step is to know what your business needs: 

• Do you require basic bookkeeping services?
• Are you looking for more comprehensive assistance that includes payroll and tax services?

Not all bookkeepers are licensed to provide all types of accounting services. So, knowing what you need ahead of time will help you narrow down your options.

Look for Experience in Your Industry 

Once you know what you need, look for someone with experience in your industry and businesses of your size. Bookkeeping for a small retail operation will differ significantly from that for a nonprofit or a construction company. 

Finding someone with experience in your industry will help ensure they can hit the ground running and won’t need much time to learn your business’s financials.   

Find a Bookkeeper Who Uses the Same Accounting Software as You

When choosing the right bookkeeping solution, you’ll also want to consider the type of accounting software the bookkeeper uses. If you already use accounting software in your business, look for someone proficient in that program. 

This will make it easier to transition your financials to an outside bookkeeping service and help ensure there won’t be a steep learning curve for either party as they take over your books.   

Make Sure You Can Work Well Together

Since you will be sharing sensitive financial information about your business with your bookkeeper, finding someone you can trust and who will communicate well with you is essential. When interviewing potential candidates, look for someone personable, professional, and who you feel comfortable talking with.  

Consider Your Budget 

You’ll want to consider your budget and how much you can afford to pay for bookkeeping services. The average cost of bookkeeping services for small businesses can vary widely depending on the complexity of your financials and the experience level of the bookkeeper. 

Some bookkeepers charge a flat monthly fee, while others bill by the hour. Depending on your needs, one pricing structure may be more beneficial. 

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4 Tips To Reduce Bookkeeping Costs Without Sacrificing Quality

1. Outsource Strategically  

Outsourcing your bookkeeping can lead to significant savings. According to recent studies, 70% of businesses outsource to save money. Another 40% seek scalability and flexibility. When you outsource, you eliminate costs related to:

• Employee benefits
• Office space
• Training

Strategic Partner Selection

To get the most out of outsourcing, choose a partner with experience in your industry. Local firms can offer personalized service and understand regional tax laws. An offshore option might be more cost-effective if you only need basic tasks. 

2. Use Technology  

Cloud-based accounting software can help you reduce bookkeeping costs. These tools automate many routine tasks to reduce the time spent on manual data entry and reconciliation. This time savings translates directly into cost savings. Invest in software that integrates with your other business tools. 

For example, connecting your point-of-sale system directly to your accounting software can eliminate the need for manual sales data entry. 

3. Review Your Finances Regularly  

Set aside time each month to review your financial statements, accounts receivable, and accounts payable. This can help you spot billing errors, identify late-paying customers, and find opportunities to negotiate better terms with suppliers. Regular reviews often lead to immediate cost recovery and improved financial health. 

4. Bundle Services  

Many accounting firms offer package deals that combine bookkeeping with tax preparation and other financial services. These bundles often come at a discount compared to purchasing services separately. For example, bundling bookkeeping with tax preparation can save you 15-20% on the total cost of these services. 

The Power of Integrated Services

Having the same team handle your day-to-day finances and tax filings ensures consistency and can lead to better year-round tax planning. When considering bundled services, assess your business needs carefully. While comprehensive packages offer value, you don’t want to pay for services you won’t use. Some firms provide customizable bundles, allowing you to select only the needed services.

Related Reading

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• Best Bookkeeping Services

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven elevates your financial management so you can focus on your business. Your business can take flight while Haven manages your financial runway. Built by founders for founders, Haven handles everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket, as well as fractional CFO services. 

Startup Success, Simplified

Join 400+ startups who’ve saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today and discover how our dedicated team can help you focus on building rather than bookkeeping.

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Imagine you've just closed a big sale. You're excited about the business growth, but what if you didn't record the transaction correctly? This bookkeeping error could cause problems down the road. Common bookkeeping mistakes like this can disrupt your operations and even lead to costly penalties. That’s why understanding the benefits of hiring a bookkeeper is crucial—it ensures your financial records are accurate, up-to-date, and compliant, allowing you to focus on growing your business with confidence. Learning about these errors and how to avoid them can help you keep your business on track.

This article will explore some of the most frequent bookkeeping mistakes and how to fix them.  If you’re worried about your accounting processes, Haven can help. We offer accounting services for small businesses to help you manage your financials. 

15 Common Bookkeeping Mistakes We See Businesses Make

1. Hiring the Right Finance Professional Can Make All the Difference   

Even seasoned accountants and bookkeepers can slip up now and then. But they’re trained for this. You probably aren’t. Even if you are, is it worth the extra time to manage your business’s books alone? 

Bringing a pro on board minimizes the potential for errors in areas such as tracking expenses, paying vendors promptly, balancing bank accounts, and running payroll. 

• Are you confident you’re handling employees’ tax withholdings properly?
• Are you tracking all financial transactions, regardless of size? 

A few mistakes in these areas can cost you more than you save by not hiring help.     

2. Accurate Cost Tracking Keeps You in Control   

When you don’t keep accurate records, your accounting and bookkeeping become less effective. When that happens, you leave your business vulnerable to losing money and being late on crucial bills. This situation sets you up for major headaches come tax season and more problems that can hinder a growing business. It’s not just errors you make while entering transaction data into a spreadsheet or failing to note that you paid a bill. 

The Importance of Accurate Financial Tracking

Inaccurate financial tracking ultimately costs your business money and undermines your ability to plan for the next month or beyond. It’s essential for your accounting system, whether it’s just you and a spreadsheet or a bookkeeper, to track every transaction to gauge your business’s financial health accurately. 

While having a financial professional handle your books is valuable, an integrated accounting system can help you or your bookkeeper do their job better. Accounting software tracks all of your financial transactions. It records when you pay bills, deposit or withdraw money, or send an invoice.     

3. Separate Personal and Business Finances   

Small business owners often blur the line between personal and business finances. It’s understandable, especially when a company is just beginning to find its footing. You go to Costco or Walmart to pick up office supplies and get a few items for your home because you're already there. But it goes beyond combining business and personal items on a single receipt. 

Many small business owners don’t have a separate business bank account. Using one account for personal and business purposes can cause the following problems: 

• Difficulty sorting personal and business transactions
• Significant issues when filing taxes 
• Missed tax deductions 
• Problems when you apply for a business loan or a line of credit 

If you’ve been using your business and personal bank accounts interchangeably, break that habit. Open a separate business bank account. You’ll likely get some incentives to do so from the bank where you have your account. If you’re shopping and in a bind, always separate business and personal purchases so you can set aside business receipts.      

4. Manage Billing Efficiently to Avoid Cash Flow Problems   

Cash flow is essential to keeping a business operating from one day to the next. Billing or invoicing customers efficiently ensures you have money for expenses, payroll, and other needs. Businesses that don’t manage their accounting well can suffer from cash flow problems. Invoicing can be delayed, and customers may take longer to pay, leaving the business struggling to cover its bills. 

Being late on your bills isn’t the only ramification of inefficient bill management. According to Statista, 91 percent of failed startups cited running out of money or a lack of financing as the reason they went out of business. Because the stakes are so high, improve your billing management by invoicing customers immediately after you’ve fulfilled your end of the transaction. Accounting and invoicing software can help you create a more seamless process for collecting unpaid invoices.   

5. Plan for Tax Season All Year Long   

Do-it-yourself tax software can be an attractive solution for small businesses looking to save money on an accountant. But while doing your taxes may be OK for individuals with a simple tax return, it’s not a good idea for small business owners. 

Business and payroll tax issues can be complex, and incorrect filings can be costly. To minimize tax errors and oversights, ensure your business uses an accounting system that seamlessly tracks company expenses, payroll, and other fundamental components of its profit and loss statement.   

6. Classify Employees Correctly to Avoid Tax Penalties   

Most small businesses rely on employees or hire freelancers to conduct essential work. Classifying these individuals correctly is crucial because you could face lawsuits and tax penalties if you do it wrong. Federal and state governments miss out on payroll taxes if a small business owner misclassifies an employee.

According to the U.S. Department of Labor, the penalties for this mistake could be substantial: 

• Business owners may be responsible for payroll
• Social Security
• Unemployment and Medicare taxes for misclassified employees

The business can also be penalized and sued if employees aren’t reimbursed and provided benefits under the Fair Labor Standards Act. 

Employee vs. Contractor Classification

To avoid misclassifying employees, you must determine if they are employees or contractors based on their jobs, pay, and relationship with your company. If the individual works eight hours a day, five days a week, is paid a salary, and receives health benefits, they are a full-time employee. 

If the person works and gets paid per project and isn’t provided any benefits, they should probably be classified as a contractor. Once you’ve made that determination, ensure the worker completes the correct payroll form for their classification. A contractor completes a W-9 form, while a full-time employee fills out a W-4 form.   

7. Keep Backup Copies of Paperless Records   

A tax audit is the last thing a small business owner wants to experience. But if you must, the more paperwork you have, the better. In this digital age where everything lives in the cloud or on an app, it’s understandable that people don’t save their paperwork for a few weeks, let alone seven years. However, the IRS will want specific records during an audit. 

A good rule of thumb is to save the following documents for at least seven years: 

• Business tax returns 
• Payroll tax records 
• Current employee information
• Business ownership records 
• Accountant records 
• Records from operations   

8. Stay on Top of Payroll   

Payroll is one of the most significant parts of any business owner’s responsibility. Inability to pay employees correctly, on time, or with the proper deductions can lead to penalties, back payments, and damage to employee morale. A mistake in payroll filings may draw the focus of tax authorities, leading to an audit. Establish a payroll system that automatically calculates taxes and deductions.

Do keep up with deadlines and pay employees according to the current tax law. Suppose your small business payroll is becoming a burden. In that case, you should explore the possibility of outsourcing payroll or hiring an accountant to manage this part of your business. An accountant can also help you comply with tax laws and employee benefits regulations.   

9. Track Outstanding Checks Regularly   

Another reason business owners should regularly reconcile bank accounts is to track outstanding checks. Having exceptional checks on the books for weeks or months can give the impression that the account has an artificially inflated balance. 

Business owners who spend based on cash in the bank run the risk of overspending, which can result in overdrawn bank accounts and bounced checks.   

10. Monitor Accounts Receivable and Payable Closely   

It can be challenging for small business owners to keep track of their AR and AP, but it’s an essential task, particularly as the business grows and the tracking becomes more complex. Cloud-based accounting software can help you track AR and AP and enable an approval process for invoices submitted by vendors. 

You must also monitor past-due client invoices and ensure other business functions are aware when a customer stops paying bills. The right software can easily resolve these communication issues.   

11. Avoid Commingling Business and Personal Expenses   

One of the most common and potentially costly errors business owners make is commingling business and personal expenses. Doing so may not seem like a big deal, particularly if the owner isn’t drawing a salary. 

However, in the event of a lawsuit, mixing your personal and business funds can void the liability protection of your business formation. To keep your funds separate, there are two key steps business owners should take. 

• Open a separate bank account for the business. Ensure it’s a business checking account and includes the business name.
• If you pay for a personal expense from your business account, ensure your bookkeeping accurately reflects the transaction. You can reimburse your business or record the price as an owner’s draw.   

12. Record Transfers Correctly   

Business owners sometimes transfer funds into the business account, and the accounting software will automatically code those funds as income. These funds should be coded as an owner’s investment, and you may need to make that change manually on the books. 

Failing to do so will overstate your revenue.   

13. LLC Owners Shouldn’t Be on Payroll   

Owners of LLCs, sole proprietorships, and partnerships often make the mistake of adding themselves to the payroll. However, in the case of an LLC, owners are not permitted to be W-2 employees. Instead, they should be paid via an owner draw or distributive share. 

Corporations can pay the owners on the payroll as regular W-2 employees. If you own an LLC and need to be on the payroll, you can solve this problem by making a one-time change to your business formation.   

14. Communicate With Your Finance Team Often   

Whether one person keeps the books or a team handles the accounting, business owners must communicate clearly and regularly with everyone involved in finance. Communication is fundamental to adequate bookkeeping because it keeps everyone on the same page.

If you’re shifting from doing the books to working with a bookkeeper, realize that these functions must work like a machine to keep the business healthy.    

15. Negotiate Vendor Terms   

Many small-business owners purchase items for their businesses from the same vendor month after month. If this is your practice, contacting your vendor and building a personal relationship with them is a great idea. 

Even if your purchases are relatively small, you can still call and ask questions. If you get to know your vendor personally, you can negotiate reduced pricing or longer payment terms, which could increase your business's cash flow.

Related Reading

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• Average Cost of Bookkeeping Services for Small Business
• Types of Bookkeeping Services
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• Benefits of Virtual Bookkeeping

Why Bookkeeping Matters More Than You Think

1. It Gives You A Clear Picture Of Where You Are Going

You may be able to see your bottom line by glancing at your bank balance, but the ups and downs in your account are also telling a story. 

• Are you in profit? 
• Are sales up? 
• Are your expenses too high? 
• Shall we take a guess? 

Paying attention to your financial reports is a great way to get to know the story of your business.

2. Claim The Right Deductions For Your Expenses

Owning and operating a business comes with some perks. You can write off travel expenses, phone, utility, and internet bills. But taking advantage of these benefits is impossible if you've been keeping your personal and business expenses together. 

3. It Helps You Catch Errors

You will be buried in paperwork if you wait until the year-end to reconcile your financial transactions. You won’t know if the bank made a mistake until you’re buried in it! 

Equally, you'll never know if any errors were made in recording your financial transactions until it's too late. This can prove costly in both time and be more challenging to reconcile months later than if you’d caught errors immediately.

4. It Makes Financing Your Business a Lot Easier

Are you considering your next funding round, or applying for a loan or line of credit? If your books are not up to date, it's a lot harder to secure. Having well-kept books gives lenders or investors a clear idea of your business’s financial state. 

It allows them to make financial projections about your company’s ability to pay off your loan in the future. Professional Bookkeeping can give you what you need to take that next step in growing your business.

Haven: Financial Management for Startups

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

Related Reading

• Bookkeeping Tasks
• Bookkeeping vs. CPA
• Bookkeeping Best Practices
• Small Business Accounting Tips
• Organizing Small Business Bookkeeping
• Hiring a Bookkeeper for a Small Business
  
• Bookkeeping Services List

When to Bring in a Bookkeeping Professional

1. DIY Bookkeeping Takes Up More Time Than You Can Afford

According to a Gallup poll, 39% of small business owners work more than 60 hours weekly. Don’t take your own time for granted. Overworking leads to burnout, and every minute you spend on a task has a dollar equivalent.

• Start tracking how much time you spend on bookkeeping per week. 
• Using an online calculator, determine how much your time is worth and determine how many “dollars” you spend on bookkeeping per month.

Compare your “salary” as your bookkeeper against the price of professional bookkeeping. Once you treat the time you spend on bookkeeping as an actual expense in cash, you’ll have a better idea of whether you should keep doing it.

2. Your Books are Never Up to Date

When you fall behind on bookkeeping, your books stop reflecting the actual state of your finances. That makes it more challenging (sometimes impossible) to understand cash flow and accurately gauge the health of your business. For instance, if your Cost of Goods Sold (COGS) hasn’t been updated in six months, you can’t subtract it from your revenue to determine how much profit you’ve earned.

This means you’re blind to how much money you’re making and the steps you can take to increase your income. What’s more, if your books aren’t up to date, you’ll have a ton of catch-up bookkeeping during tax season, making a typically stressful time of year even more difficult. With a qualified bookkeeping solution, you can expect to receive monthly financial statements, which will help you understand where your money is going and coming from.

3. Your Accountant Does Your Bookkeeping

Some entrepreneurs leave their books untouched throughout the year, then deliver their expenses and bank transcripts to their accountant during tax season so they can be done retroactively to file a return.

It may seem simple to deal with an unappealing task, but we advise against it.

‍Here’s why:

• When you don’t have up-to-date books during the year, you can’t use monthly or quarterly financial statements to guide your business decisions.
• It’s a waste of money. Certified Public Accountants (CPAs) generally charge more per hour than bookkeepers. You could end up paying more for bookkeeping services than you need to.
• An accountant won’t necessarily provide you with retroactive month-to-month financial records. 
• Detailed business records are essential for securing loans, bringing on investors or partners, or selling your business.

Whatever bookkeeping solution you choose should offer you regularly up-to-date books, an affordable rate, and detailed records.

4. At Tax Time, You Send Way Too Many Emails to Your Accountant

Here’s how tax season should look:

The financial year ends at midnight, December 31. Whoever does your bookkeeping hands off your financial records for the year to your accountant. Your accountant uses those records to file your taxes. Later, you receive a tax refund.

The end.

Your tax season won’t look like this if you hand off messy or incomplete books to your accountant. You’ll likely be caught in an email or phone back-and-forth as you puzzle your way through a year’s worth of uncategorized expenses and income.

Having your accountant file taxes should feel like a quick hand-off, not a prolonged arm wrestling match. A comprehensive bookkeeping solution can help.

5. You Missed Out on Tax Write-offs

Suppose you just found out that, since your home is more than 50 miles from your place of work, you’re allowed to deduct some of the commuting costs. That’s excellent news. Only now are you thinking about all the years you spent without filing this deduction, the extra money you could have saved, and how you could have spent it. Images of an in-ground pool dance in your head.

The sooner you know about small business tax deductions, the sooner you take advantage of them, the sooner you’ll benefit. 

The Roles of Bookkeepers and Accountants in Expense and Tax Management

Part of a bookkeeper’s job is to take every business expense you incur and categorize it properly. In doing so, they can spot obvious deductible expenses such as mileage. An accountant with experience in your industry is most qualified to give you comprehensive guidance regarding tax write-offs. 

However, many business owners only talk to their accountants during tax season. A good bookkeeper who understands your business’s needs can help you throughout the year. Having your accountant file taxes should feel like a quick hand-off, not a prolonged arm wrestling match.

6. Your Cash Flow is Unpredictable

Ever have that sense that you’ve got money coming your way from clients, but you’re not sure how much it will be, or when it will arrive? Or do you come up with an empty wallet when it’s time to pay freelancers or contractors?

You need cash flow statements. A cash flow statement tells you how much money other people owe you, and how much money you owe other people. It’s like a crystal ball that shows you the future of your bank account. With a proper bookkeeping solution, you can get monthly updates on your cash flow.

7. You’ve Had Security Problems With Your Computer

When you use your computer to track and store financial information, you must be 100% certain that it’s secure and stable. In May 2017, the WannaCry ransomware attack hit over 230,000 computers in more than 150 countries worldwide. WannaCry encrypted victims’ data, making it inaccessible, and demanded Bitcoin payments to make it available again.

Losing years of financial info is bad enough. Research from MalwareBytes also reports that over 90% of home computers have been infected by spyware at one point or another. If you’re doing your bookkeeping on your home computer, there’s a good chance someone else has (or will eventually have) access to your business’s financial info. Use a free utility like AVG to scan your computer. If it detects malware, it’s a sign that you either need to beef up your security measures, or hand off the burden of bookkeeping security to a pro. 

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When it comes to your business’s financial health, it’s easy to get overwhelmed with all the day-to-day details. Especially when you’re trying to grow your business and there’s so much to keep track of. 

That’s why having a team like Haven to manage your bookkeeping can make a huge difference. We take care of everything from daily bookkeeping to complex tax filings and R&D credits that put cash back in your pocket, and fractional CFO services. 

Our dedicated team lets you focus on building your business while we handle the financial runway to get you to your next destination. 

24/7 Slack Support from CPAs Who Get Startups

When you work with Haven, you’re not just getting a team of expert bookkeepers and accountants. You’re also getting 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

We know what it’s like to be a startup, and we’ve been through the financial ups and downs ourselves. Our team is here to help you navigate the complexities of your business’s finances so you can make informed decisions and get back to running your business. 

Join 400+ Startups Who’ve Saved Millions in Tax Credits and Never Missed a Filing Deadline 

With Haven, you’re joining a community of over 400 startups that’ve saved millions in tax credits and never missed a filing deadline. We help you get organized to take advantage of every financial opportunity. Our team works behind the scenes to ensure your accounting is accurate and up-to-date so you can focus on your business and not worry about the financial details. 

Book a Call Today to See How Haven Can Help You 

If you’re ready to stop stressing over bookkeeping and get back to focusing on your business, book a call with Haven today. We’ll help you understand how our dedicated team can support you and your business so you can reach your goals.

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Running a business can feel like flying a plane in a storm. You're constantly battling turbulence like unpredictable cash flow, rising costs, and that pesky, never-ending paperwork. Fortunately, you don't have to face these challenges alone. Hiring a bookkeeper can help lighten your load and get your business back on course. With their support, you can stay organized, calm the storm, and even get ahead. But what exactly do bookkeepers do to help? Let's find out what is included in bookkeeping services to understand better the benefits of hiring a bookkeeper.  

Haven's bookkeeping and accounting services for small businesses can help you learn what is included in bookkeeping services and how they can help your business. 

What is Included in Bookkeeping Services?

Bookkeeping services are the process by which a business keeps records of its income and expenses through an accounting system, usually an accounting software platform. Bookkeepers can help you track down money you owe to other organizations and funds owed to your company to achieve the most accurate financial record. 

This can give you an accurate depiction of your company’s health. Bookkeeping services center on day-to-day financial management. These include recording transactions, managing your general ledger, and fulfilling tax and regulatory requirements.

Get to Know Your Finances: Recording Financial Transactions

Tracking money coming in and going out is the most basic bookkeeping task but also the most important. Bookkeepers categorize income and expenses so you know exactly how much cash flows into your business, who it’s coming from, what you’re spending money on, how much you’re spending, and how often. They update your financial records on a regular basis, ensuring they’re always accurate.  Accurate financial records give you a clear picture of your business’s health. 

Play a Game of Match: Bank and Credit Card Reconciliation 

Remember playing matching card games like Memory as a kid? Reconciling bank account and credit card statements is the business equivalent. Bookkeepers ensure the income and expenses on your bank statements match the ones on your credit card transactions. They catch any discrepancies as soon as they occur, enabling a fast resolution and preventing additional errors. 

Keep the Cash Flowing: Managing Accounts Payable and Receivable 

Everybody loves payday (cha-ching!). And everybody hates it when payday comes late (womp, womp). Your bookkeeper manages accounts payable (AP) to ensure vendor bills are paid on time, and they monitor accounts receivable (AR) to ensure your clients pay your invoices punctually. This way, bookkeepers improve vendor relationships and keep your business profitable. 

Stay Compliant: Payroll Processing 

When you hire employees, you must do more than just pay them. In addition to calculating wages, you’re also responsible for crunching the numbers for deductions and taxes. Bookkeepers take this work off your plate by processing payroll. They also ensure you comply with employment laws. 

Know Your Numbers: Financial Reporting 

Financial reports involve more than basic Excel spreadsheets. Bookkeepers prepare profit and loss (P&L) statements, balance sheets, and cash flow statements. These records are essential for financial planning and forecasting. They also serve as the basis for monthly and quarterly financial analyses. By enabling regular reviews, bookkeepers help with the strategic decision-making that grows your business. 

Get Organized: Tax Preparation and Filing Support 

Bookkeepers don’t file your taxes (that’s an accountant’s domain). But they do organize your tax documents, protecting you from panicked scrambling every April. They make sure your accountant has all the info they need to file your return accurately, leverage tax breaks, and keep the IRS happy. 

Follow the Money: Expense and Budget Management 

Hosting your website on a particular domain and providing employees with Microsoft Office and housing your customer relationship management (CRM) with a specific provider. All these tools cost money and the expenses can add up quickly. Bookkeepers track all operational costs so you know exactly where your money is going and when. This ensures you can follow your financial plan, manage your budget, adjust when needed, and plan for the future. 

Keep Track of What You Have: Inventory and Asset Management 

In addition to managing daily tasks, bookkeepers can monitor your stock levels and fixed assets. They track asset depreciation and amortization to calculate their value and associated costs. 

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• Outsource Bookkeeping for Small Business
  
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How a Bookkeeping Service Benefits Your Business

Managing invoices, expenses, and payroll can become overwhelming without the right systems. Professional bookkeepers bring expertise and tools, such as cloud-based software, to streamline these processes. 

70% of CFOs rely on Excel for financial budgeting and forecasting, highlighting the need for modernization. Modern bookkeeping services automate tasks like invoicing and expense tracking, saving time and reducing errors, allowing you to focus more on business growth.

1. Tax Compliance: Optimize Deductions, Avoid Penalties, and Reduce Stress

Navigating tax season can be daunting, but accounting services make it manageable. With tax laws continually evolving, staying compliant is essential. A professional bookkeeper ensures you meet deadlines and avoid penalties while identifying potential deductions and credits. 

Interestingly, 71% of small companies outsource their tax preparation, underscoring the value of expert assistance. Experts can optimize your tax strategy, ensuring compliance and maximizing savings.

2. Cash Flow Management: Avoid Business Failure with the Help of Bookkeeping Services

Cash flow is essential for your business's health. Alarmingly, 82% of business failures are due to poor cash flow management. 

Bookkeeping services clarify your income and expenses, helping you avoid shortages and plan for significant investments. Virtual bookkeeping services have become increasingly popular, offering high-level financial oversight without the cost of a full-time hire.

3. Business Growth Insights: How Bookkeeping Can Help Your Company Scale

Small business bookkeeping and accounting aren't just about record-keeping; they're catalysts for growth. Professional bookkeepers and accountants offer insights that transform data into actionable strategies, from pricing adjustments to expansion plans. 

Studies indicate that businesses utilizing external financial advice experience an average 11.5% increase in additional revenues.

4. Peace of Mind: How Bookkeeping Services Help You Focus on Your Business Instead of Finances

Entrusting your finances to experts alleviates concerns about missed deductions, inaccurate records, or unexpected audits. Nearly 40% of CFOs do not entirely trust the accuracy of their organization's financial data. Outsourcing bookkeeping functions enhances accuracy and frees up time and mental energy, enabling you to focus on innovation, marketing, and customer engagement. 

Haven: Financial Management for Startups

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from daily bookkeeping to complex tax filings, R&D credits that put cash back in your pocket, and fractional CFO services. 

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline - all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

What is The Difference Between Accounting and Bookkeeping?

When you're running a startup or small business, it’s easy to confuse bookkeeping and accounting. They both deal with money, right? But they play very different roles in your financial toolkit, and understanding the difference can save you headaches (and money). 

Bookkeeping: The Day-to-Day Numbers 

Think of bookkeeping as the foundation. Bookkeepers are responsible for recording all the day-to-day transactions: sales, purchases, receipts, and payments. They're entering data into your accounting software, tracking expenses, and ensuring every dirham or dollar is in the right place.

Bookkeeping doesn’t typically require a degree or certification, but it does require attention to detail. Clean, accurate books are essential because they feed directly into what your accountant will later review.

Accounting: The Big Picture

Now, accounting takes all that data and turns it into something meaningful. Accountants analyse, interpret, and report on your financials. They check your books for accuracy, make necessary adjustments, and help you understand what the numbers mean for your business.

They’re the ones who’ll guide you on budgeting, taxes, profitability, and whether you can afford that new hire. Accountants often hold certifications like CPA (or equivalent) and typically earn more because their job requires a broader and deeper skill set.

In short: 

• Bookkeepers handle the inputs: recording transactions, organising receipts, and keeping the books tidy.

• Accounting handles the outputs: interpreting that data, offering financial insights, and helping you make smarter decisions. 

Both roles are crucial. Without good bookkeeping, your accountant is flying blind. You might be flying into financial trouble without realising it, without a good accountant.

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Choosing The Right Bookkeeping Service for Your Business?

Bookkeeping isn’t one-size-fits-all. Every industry has its own:

• Unique set of regulations
• Compliance issues
• Operational challenges

An experienced bookkeeper who understands your industry and its nuances will ensure accurate financial records and help you avoid costly mistakes. 

They’ll also be able to provide you with strategic guidance to help you plan for growth. For example, a bookkeeper with e-commerce experience will be familiar with sales tax regulations that vary by state and how to manage inventory accounting.

The Value of Industry-Specific Financial Expertise

In contrast, one with expertise in the food service industry will understand the importance of tracking food and labor costs to help boost your profitability. Look for a bookkeeper who has worked with businesses of your size in your sector. This will help ensure they understand your operational challenges and can help you navigate them.

Choose Between Local and Virtual Support

Thanks to modern tools like QuickBooks Online, Zoom, and Slack, you don’t need to limit your search to local professionals. That said, whether you go virtual or in-person, your bookkeeper should be responsive and well-versed in the financial laws that apply to your region or country. Local insight can be valuable regarding compliance, reporting, or tax deadlines. 

Review Qualifications, Credentials, and Reputation

While a bookkeeper doesn’t need to be a CPA, certifications such as those from the National Association of Certified Public Bookkeepers or the American Institute of Professional Bookkeepers show a commitment to professionalism. Ask for client references and dig into reviews or testimonials. After all, this person will have access to all your financial records, so it’s worth doing your homework.

Clarify Software Compatibility

Ensure your bookkeeper is fluent in the accounting software your business uses—or is willing to learn. Ask if they’ll use your current system or bring in their own. Either way, you should always have full administrative access to your financial data. Transparency and control over your records are non-negotiable.

Don’t Overlook Tax Knowledge

Bookkeepers aren’t tax advisors; they should understand how everyday decisions affect your tax position. A good bookkeeper will stay on top of relevant tax changes and help you stay organised throughout the year, making life easier come tax season and saving you money through more thoughtful planning.

Related Reading

• Pros and Cons of Outsourcing Accounting Services
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Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

When you're busy building your business, the last thing you want to worry about is whether your bookkeeping is done correctly. You can avoid this stress by hiring an expert to manage your books, giving you more time to focus on your business.  

Bookkeepers help you organize your finances to understand your financial position and make informed decisions about your business. They also ensure that your books are accurate and up to date well before tax season, so you won’t have to panic when it’s time to file your business taxes. 

What Does a Bookkeeper Do? 

A bookkeeping professional’s primary role is to record and organize financial transactions. Bookkeepers help you keep track of your income and expenses to get a clear picture of your business’s economic health. 

They also ensure your books are accurate and up to date for tax season. While accountants typically focus on taxes and financial reporting, bookkeepers manage your business’s financial records throughout the year. The more organized your finances are, the easier an accountant’s job will be when it’s time to file your business’s taxes.

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Running a small business involves juggling many responsibilities, and bookkeeping often falls to the bottom of the to-do list. You're not alone if you feel overwhelmed trying to handle your books while keeping your business afloat. Luckily, a simple solution to this common problem is hiring a bookkeeper. Read on to discover the benefits of hiring a bookkeeper and how they can help you tackle your accounting challenges so you can focus on running your business.

Haven offers accounting services for small businesses ready to level up their bookkeeping. Whether you want to learn about the benefits of hiring a bookkeeper or take immediate action and hire one, we can help.

Understanding the Benefits of Hiring a Bookkeeper

Hiring a bookkeeper offers businesses a range of practical and financial benefits, especially in today’s increasingly data-driven and compliance-focused environment. As financial responsibilities grow more complex, having a dedicated professional manage the day-to-day flow of financial information can be a game-changer for businesses of any size.

Fueling Market Expansion

The value of bookkeeping is also reflected in market growth. According to Business Research Insights, the global bookkeeping services market was valued at around USD 46.1 billion in 2024 and is projected to reach USD 97.3 billion by 2032, growing at a CAGR of 9.8%. 

This growth highlights how businesses worldwide recognize the importance of professional financial support, not just for compliance, but as a core driver of operational success.

Save Time and Get Organized

Running a business comes with its share of financial responsibilities. But there comes a point when you can no longer keep up with the bookkeeping on your own. The time you spend on bookkeeping can be dedicated to your:

• Business
• Product development
• Customer experience
• Your bottom line 

Stay on Top of Bills and Avoid Late Payments

Late and unpaid bills can dent your cash flow and business goals. A bookkeeper can put a process in place that helps keep an eye on your invoices. This can include sending out reminders if a bill is late, making a phone call, or issuing a late fee penalty. They’ll also keep up with late or forgotten payments, so you don’t have to worry about missing financial obligations.  

Improve Your Cash Flow 

Since your bookkeeper handles the day-to-day recording of your invoices, receipts, and other transactions, they have a good handle on your income, expenses, and spending habits. Their attention to your accounts will help you understand your business performance and identify any cash flow issues as they come up.  

Make Better Business Decisions 

Understanding your business income and expenses month by month will help you get a handle on your financial situation. You’ll be able to identify spending patterns and sales trends. A tax professional and bookkeeper can help you make better business decisions about your day-to-day operations, like what time of year it’s best to make significant purchases. 

Bookkeeping for Strategic Cash Flow Management

They can help forecast seasonal ups and downs, ensuring you have access to capital during the slow months and avoid taking out too much money during good months. A greater awareness of spending will help you control and lower operating expenses where possible, saving you money in the long run. 

Enjoy a Smoother Tax Season

If you hire the bookkeeper at the same firm that employs your tax specialist, they’ll work together to ensure you have an update of your accounting records and return filings. From this, they’ll provide an interim or year-end financial statement, giving you a clearer picture of your business’s economic health and an advanced view of your annual tax obligation. 

You can make decisions in advance that could modify or lower your tax bill. And having your paperwork in order makes it easier to prepare accurate and complete tax returns. 

Be Prepared for an Audit 

In the unlikely event your business is audited, having accurate and up-to-date records will ensure a smoother audit process. The sooner you can get back to running your business, the better. If you’re considering applying for financial assistance programs, having up-to-date records will ensure your applications meet the appropriate requirements and will pass any review or audit test. 

Secure Financing More Easily 

Creditors need accurate information about the financial position of your business before they give out a loan. Good records show prospective creditors that you know all facets of your company. You will have an easier time securing capital when you can outline past performance clearly. 

Business's Credibility and Growth Catalyst

Banks and other lenders must be assured that you have a solid history and a good handle on your business’s finances. If you want to sell your business, good financial records demonstrate its value to prospective buyers. Besides, when it comes time to market your business or secure capital to grow your business, being able to document your past performance thoroughly will help your company’s valuation. 

Don’t Miss Tax Deductions or Credits 

Without proper bookkeeping, input tax credits may be overlooked or forgotten when filing income tax returns. And you want to ensure you’re taking advantage of every possible tax deduction. The more you can claim, the lower your tax bill. There’s a lot to know regarding expenses and what you can claim. 

Bookkeeping as Your Shield Against Tax Scrutiny and Missed Savings

And missing a deduction means paying more in taxes than you need to. Even though you don’t need to send in original receipts when you file your taxes, if the tax authorities want to see proof of a claim and you can’t find it, you can’t claim it. A bookkeeper will keep everything organized for you. 

Resolve Conflicts of Interest with Any 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 access it easily. 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 withdrawing money. 

Get a Different Perspective on the Business

Although you may 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 organize the financials 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). He or she will give you that big picture through crunching numbers.

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When Do You Need To Hire a Bookkeeper?

When you first open your business, you can run everything yourself. Eventually, hiring a bookkeeper becomes a critical step that helps ensure continued growth for your business. It may seem unnecessary initially, but hiring a bookkeeper can help save you from several business problems. 

You're Stressing Out About Bookkeeping 

When your business grows, your workload tends to grow in tandem. Trying to run a business by yourself leads to additional stress. As your business grows, a dedicated bookkeeper can help reduce that stress. Your invoices and receipts must be appropriately managed. Bookkeepers help keep track of all of your organization’s purchases, expenses, and sales. 

Your Cash Flow is All Over the Place 

When work starts to get busy, things sometimes fall through the cracks. Invoices can be left unpaid, and receipts go unaccounted for. This leads to outdated books and statements, which can cause unpredictable business cash flows. Hiring a bookkeeper can eliminate that problem and allow you to focus on other tasks. 

Ensuring Financial Visibility and Stability Through Meticulous Bookkeeping

They can stay on top of the payments and ensure your books are in order. When your bookkeeping is incorrect, you are not aware of the actual state of your business's finances. Unpredictable cash flow makes it extremely difficult to gauge how your business is performing and may cause setbacks. 

Your Business Isn’t Ready for Tax Season 

Preparing for tax season is very important. You don't want to leave anything for the last minute. Giving everything to your accountant to handle shortly before taxes are due isn’t an effective use of anyone's time. Without a system to monitor your books, an accountant will need ample time to organize everything and potentially charge a hefty fee. 

Bookkeepers can help you with tax preparation throughout the year, so your business will be ready for tax season. Besides helping with your business’s current taxes, bookkeepers can help you with any retroactive bookkeeping your company might need. 

Your Accountant Does Your Bookkeeping 

Accountants and bookkeepers do not do the same things for a business. Accountants are responsible for recording financial information and analyzing, reporting, and preparing tax documents. On the other hand, bookkeepers are responsible for the organization’s various accounts. 

Bookkeeping as the Foundation for Financial Insight and Strategic Advice

They monitor the company’s transactions and create multiple financial statements and reports. After the statements are made, you can review the reports with your financial advisor to better understand the economic health of your business. If your accountant also handles the bookkeeping, you unknowingly prevent them from focusing on their duties. 

Bookkeeping is Taking Up Too Much of Your Time 

You most likely did not start your business to spend all of your time doing the bookkeeping. If bookkeeping takes up your valuable time and energy, it's a tell-tale sign to hire a bookkeeper. Doing your bookkeeping isn’t practical in the long run. Proper bookkeeping services require a lot of time and dedication, and if not done correctly, may create roadblocks for your business. 

Hiring a bookkeeper will allow you to focus on the other essential aspects of your business and give you peace of mind, knowing that the work is done correctly. 

Effortless Financial Management

Let your business take flight while Haven manages your financial runway. Built by founders for founders, we handle everything from:

• Daily bookkeeping to complex tax filings
• R&D credits that put cash back in your pocket
• Fractional CFO services

Startup-Focused Financial Expertise

Join 400+ startups who've saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline, all while accessing 24/7 Slack support from CPAs who understand the unique challenges of growing businesses. 

Book a call today to learn how our dedicated team can help you focus on building rather than bookkeeping.

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5 Tips For Selecting The Right Bookkeeper For Your Business

1. Hire a Person Who Understands Your Business

Finding someone who understands your industry and unique financial needs is crucial when selecting a bookkeeper. Not every bookkeeper can do this effectively. Ask the applicant about their experience with businesses like yours. Have they worked with companies that are about the same size and have the same number of employees? 

Do they understand the common financial challenges these businesses face? Bookkeepers who don’t understand your business may create costly errors. They may not have the experience and foresight to guide your financial path.

2. Choose a Local or Virtual Bookkeeper

You will want to connect with your bookkeeper personally regularly. Hiring someone in your area isn’t always a requirement, especially with the number of online collaboration and meeting tools available, such as:

• GoToMeeting
• Slack
• QuickBooks Online

Local Expertise, Universal Benefit

Whether you choose a local bookkeeper or someone remote, make sure they understand local business laws and other regulations. An experienced local or virtual bookkeeper will have first-hand knowledge of financial strategies that work best with the customer base. They can provide suggestions for increasing your revenue.

3. Check for Credentials and Credibility

Ask about the applicant’s training and real-world experience. Do they have any type of certification? Two examples of bookkeeper certification include:

• The Certified Public Bookkeeper license, accredited by the National Association of Certified Public Bookkeepers
• Certified Bookkeeper, accredited by the American Institute of Professional Bookkeepers 

The Imperative of Trust and Verification

Have them describe examples of other businesses they work with. Request professional references. You must trust the person managing your business finances. They have access to all financial records. Even the most experienced bookkeeper can mess up your records or embezzle money.

4. Ask What Software They Use

Before hiring an individual, ask what accounting software they use. If you already have a software package you prefer, will they use it? If not, will you have administrative rights to their software? You must maintain access to your financial information. All accounting files must remain clear and transparent for your protection.

5. Make Sure They Have Tax Experience

Over the life of your business, taxes can have a compounding effect on your income. Thus, you must decrease your tax burden and align it with tax laws. This will help you reach financial goals quicker. Make sure that your bookkeeper is well-versed in all tax law changes. They should guide you in creating the best tax-efficient structure for your company.

Book a Call to Learn More About our Accounting Services (Trusted by 400+ Startups)

Haven is a bookkeeping firm that caters to growing businesses. Our team of accountants, CPAs, and tax professionals understands the unique needs of startups and can help you save time and money on taxes so you can focus on building your business. 

Unlock Growth with Expert Financial Support

Join over 400 startups who have saved millions in tax credits, countless hours of administrative work, and never missed a filing deadline while accessing 24/7 support from experts who get it. Ready to take your business to the next level? 

Book a call today, and let us help you focus on building rather than bookkeeping.

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In the world of business finances, it's essential to know the difference between expenses you can deduct and those you can't. Whether you run a big company or a small one, you spend money on various things to keep your business going. But when it comes to taxes, not all expenses are treated the same. The following is here to help you understand deductible and non-deductible business expenses:

Deductible Expenses

1. Ordinary and Necessary Business Expenses
   • Rent or lease payments for office space
   • Salaries and wages for employees
   • Employee benefit programs and pensions
   • Utilities and office supplies, including software
   • Professional fees (legal, accounting, etc.)
   • Advertising and marketing costs
   • Insurance premiums
   • Interest on business loans
   • Taxes and licenses
2. Charitable Contributions
3. Travel expenses that are for business purposes

Non-Deductible Expenses

1. Personal, Living, or Family Expenses
   • Expenses that are considered personal, living, or family expenses are not deductible for tax purposes.
2. Penalties and Fines
   • Penalties and fines paid to the government for the violation of any law are not deductible.
3. Political Contributions and Lobbying Costs
   • Contributions to political parties, campaigns, or candidates, as well as certain lobbying costs, are not deductible.
4. Federal Income Taxes
   • Federal income taxes are not deductible on the corporate tax return.
5. Business Meals
   • Business meals that are ordinary and necessary expenses incurred during the active conduct of business may be partially deductible. The meals must not be lavish or extravagant, and the taxpayer or an employee of the taxpayer must be present at the furnishing of the meal. The Tax Cuts and Jobs Act (TCJA) allows for a 50% deduction for business meals.
6. Entertainment Expenses
7. Travel expenses that are for personal purposes

In the dynamic world of startups, financial stability and strategic planning are crucial for success. However, many startups, especially in their early stages, find it challenging to justify the cost of a full-time Chief Financial Officer (CFO) on their payroll. This is where fractional CFOs come into play, offering an innovative solution to bridge the financial expertise gap.‍

What is a Fractional CFO?

A fractional CFO is a seasoned financial expert who lends their expertise to startups on a contractual basis. Unlike full-time CFOs, fractional CFOs often work with multiple companies simultaneously, providing cost-effective and flexible financial leadership. Let's explore the pivotal roles they play in shaping the financial success of startups.

1. Financial Stewardship

Financial management is the core responsibility of a CFO, and as startups grow, their financial processes become increasingly complex. Fractional CFOs are adept at navigating the intricate web of financial reporting, accounting, and budgeting, allowing founders to focus on their core business activities.

2. Strategic Optimization

Money drives businesses, making CFOs instrumental in strategy formulation and optimization. Fractional CFOs bring a unique perspective to the table, helping startups test and fine-tune their strategies to ensure financial viability. They provide the financial compass to navigate the path toward success.

3. Systems Implementation

As startups scale, they require efficient systems to meet evolving demands. Fractional CFOs draw on their extensive experience to ensure the smooth implementation of new systems without disrupting existing workflows. They anticipate and rectify potential issues, ensuring that the transition is glitch-free.

4. Capital Raising

Expanding a business often demands an injection of capital. Fractional CFOs excel in valuing companies, engaging potential investors, and managing the post-deal paperwork and due diligence. Their indispensable role in the capital-raising process contributes to the financial health and growth of startups.

5. Navigating Audits and Transactions

Internal audits and mandatory legal requirements can pose a significant challenge for startups. These meticulous examinations involve scrutinizing not just cash flow but also procurement, taxation, and all financial transactions. Fractional CFOs, with their extensive audit experience, provide a lifeline for founders, guiding them through this complex process.‍

Key Benefits of Hiring a Fractional CFO

Cost-Effective: Startups, renowned for their resourcefulness, can benefit from the expertise of an experienced CFO when needed, without the cost of an additional full-time C-suite member.

Vast Experience: Fractional CFOs are seasoned veterans who bring not only depth but also breadth of experience, having tackled a variety of challenges across different domains.

Flexibility: Startups can easily adapt and make changes when working with fractional CFOs, ensuring a harmonious and productive working relationship.

Focused Expertise: Fractional CFOs come in to address immediate needs, allowing startups to concentrate on specific tasks, such as audits, mergers, acquisitions, or fundraising rounds.

Fast-Track Financial Growth: One notable benefit of fractional CFOs is their ability to fast-track financial growth. They help startups seize opportunities, navigate financial hurdles, and optimize their strategies to achieve rapid and sustainable growth.‍

Take Advantage of Fractional CFO Partnerships

Hiring a fractional CFO offers startups access to high-caliber financial expertise without incurring the full-time commitment and cost associated with a traditional CFO. It's a smart and strategic move that aligns with the resourceful spirit of startups, paving the way for financial success and sustainable growth.By considering the innovative option of a fractional CFO, startups can fortify their financial foundations, ensure compliance with regulations, and confidently navigate the intricate world of finance, all while concentrating on their core missions. It's a partnership that benefits both sides, unlocking a world of financial possibilities for startups as they embark on their journey to success.

Ensuring compliance with payroll tax obligations is pivotal for any business, and avoiding penalties requires diligence and attention to detail. Here are essential strategies to prevent payroll tax fines and maintain financial stability within your organization:

‍Avoid Missing Deadlines: Stay Ahead with Timely Filing and Payment

‍Missing tax deadlines can lead to severe consequences, including hefty penalties and relentless demands from tax authorities. Employers must meticulously adhere to due dates to prevent these disruptions. While payroll providers handle the majority of payroll-related filings, it is important to review them for unpaid balances or discrepancies. In addition, annual reports for the Secretary of State and franchise taxes are due yearly and need to be filed by the company.

Stay Informed: Monitor IRS Announcements and State Tax Regulations

‍Ignorance is not an excuse when it comes to non-compliance with IRS regulations. Employers must proactively stay informed about IRS announcements, tax return news, updates on tax laws, tips, and form deadlines. The IRS frequently releases vital information that businesses need to be aware of, especially during the tax filing season. Additionally, employers should remain vigilant about state-specific regulations, especially if their employees work across different states. Staying abreast of these updates and adhering to state-specific tax laws is essential to prevent inadvertent mistakes that could lead to penalties.

‍Utilizing Available Resources‍

In your pursuit of compliance and resolution, resources like the AbstractOps State Registration Guide can be invaluable. This comprehensive resource can provide you with state-specific information, requirements, and contact details, streamlining your research process and ensuring you have accurate and up-to-date data at your fingertips. Being armed with this knowledge enhances your ability to communicate effectively with state agencies, making your efforts to avoid or resolve penalties more targeted and efficient. AbstractOps can automate this process ensuring you are registered and staying compliant all in ~5 minutes!

‍Received a Penalty?

‍Unexpected expenses, especially those stemming from fines and penalties imposed by state and government agencies, can throw a wrench into any business's financial stability. There are effective strategies to navigate these challenges and potentially have your fees waived, saving your business from unnecessary financial strain.

Open Communication with Your Payroll Provider

‍Your first line of defense is contacting your payroll provider. Often, payroll providers handle filing, payments, and notifications related to your obligations. Mistakes can occur, and these professionals might have crucial information about any errors made. Initiating a conversation can lead to positive outcomes, including the potential waiver of fees. Even if the error isn't on their end, starting the dialogue with your provider can help accurately pinpoint the issue.

‍Direct Communication with the State

‍If your efforts with the payroll provider yield no results, your next step is to directly contact the state agency. While this can be a challenging process, being well-prepared and patient is key. Locate the necessary contact information, either from the notice or bill received or through the state's official website. Once you establish contact, gather the required information and update any account details necessary for compliance. Clearly explaining your situation might lead to understanding from the agency's end, potentially resulting in penalty adjustments or waivers.

Cultivating Compliance and Stability: The Strategic Role of Accounting Firms & Software

‍Businesses facing the complexities of payroll tax penalties can significantly benefit from the expertise of accounting firms, like Haven. Their in-depth understanding of IRS and state tax regulations keeps businesses informed, enabling them to navigate the ever-changing legal landscape effectively. In case of penalties, accountants facilitate open communication with payroll providers, rectify errors, and guide businesses in direct interactions with state agencies. By partnering with Haven, businesses gain access to proactive support, empowering them to prioritize compliance, minimize risks, and concentrate on their core activities, all while safeguarding their financial stability and ensuring enduring success.

Prioritize Compliance, Minimize Risks

‍While the process of getting fees waived can be daunting, persistence, thorough research, and a positive attitude can significantly enhance your chances of success. Remember, proactive efforts and timely compliance are your best defenses against penalties and fees. Prevention, facilitated by tools like AbstractOps that help manage compliance requirements, and ensure you can hire and operate compliantly across all 50 states is always more effective than correction.

Haven is rebuilding accounting operations for founders, by founders. Offering bookkeeping, tax services, tax credits, and more to make taxes and financials simplified. Unlike traditional accounting firms that take weeks to get a hold of and put you on their schedule, Haven creates dedicated Slack channels for clients to answer questions year round.  As our CEO, Cyrus Shirazi, says “If we do the little things right and prioritize the customer over all else, the rest will take care of itself”.

Haven is based in New York, and serves clients all across the US. Started in March of 2023, Haven has already attained north of 45 clients; saving them millions of dollars with tax benefits through things such as R&D Tax Credits. Haven doesn’t look at themselves as an outsourced accounting team, but rather an extension of their client’s team.

Staying on top of your finances is important for any business but founders either aren’t versed in finance or simply don’t have the time to deal with it. Haven ensures that your company’s finances are right from the start to allow founders to focus on what matters most - growing their business!

Learn how easy it is to get started working with us at usehaven.com!

As a new business owner, you've poured your heart and soul into developing a product or service. Your passion undoubtedly revolves around the success of your unique business idea. However, amidst the excitement of entrepreneurial endeavors, the critical facets of bookkeeping, accounting, and maintaining balanced books often take a backseat.

For every company founder, understanding how accounting, bookkeeping, and financial reports can work to the advantage of your business is crucial. Early-stage accounting isn't just about tax benefits; it's a strategic move that can save you and your accountant headaches during tax season.

Differences Between Accounting and Bookkeeping

While accounting and bookkeeping may seem interchangeable, there are nuanced differences. Accounting involves decoding financial records for purposes ranging from accurate tax payments to strategic decision-making. On the other hand, bookkeeping ensures the meticulous tracking of all financial records, primarily focusing on income and expenses.

Regardless of your business's size, both accounting and bookkeeping services are invaluable. When seeking investors or partners, they'll require access to your financial reports illustrating the importance of bookkeeping for startups. A skilled accountant can help compile these reports, and efficient bookkeeping ensures the data needed for these reports is readily available.

Setting the Foundation: Choosing a Business Entity

Before diving into accounting intricacies, selecting a suitable business structure is paramount. Consulting with an accountant or lawyer to determine the best business entity for your organization is a wise move.

The five primary business entities—sole proprietorship, limited liability company (LLC), C corporation, S corporation, and partnership—each serve specific needs. The choice depends on factors such as risk level, the need for personal asset protection, fundraising goals, and potential future plans like going public or a sale. Regardless of the entity type one chooses for their business, bookkeeping for startups is of the utmost importance.

Deciding on an Accounting Method

Two accounting methods, cash basis and accrual basis, stand as the options for your business's first tax return. Cash basis accounting tracks income when received and expenses when paid, simplifying the tax return process. On the other hand, accrual basis accounting recognizes money and expenses when earned, providing a clearer long-term outlook for the business.

Engaging with a CPA before deciding between these methods is advisable. A CPA can guide you to choose the accounting method that aligns with your business goals and maximizes tax benefits.

Safeguarding Your Financial Records

Selecting a business entity and accounting method lays the groundwork, but maintaining impeccable financial records is equally vital. In the event of an IRS audit, having solid proof of your tax return claims is crucial.

Ensure meticulous records of invoices, bills, receipts, credit card and bank statements, financial statements from your bookkeeper, proof of payments, canceled checks, previous tax returns, and forms like W2s and 1099s. Store these records for at least three years, with certain documents retained longer for potential queries.

Checklist: Bookkeeping for Startups

Procrastinating on bookkeeping until tax season or investor courting is a recipe for chaos. Implementing regular bookkeeping tasks is essential for accurate financial management:

Weekly Bookkeeping Tasks:

• Enter all transactions into your bookkeeping software or an Excel spreadsheet, categorizing them accurately.
• File or digitize receipts to avoid loss and provide proof for potential expense deductions during an audit.

Monthly Bookkeeping Tasks:

• Reconcile bank accounts to prevent overlooked expenses or income.
• Send and prepare invoices promptly to maintain a healthy cash flow.
• Pay vendors and bills promptly to avoid late fees and maintain good standing.
• Follow up on outstanding invoices to ensure a smooth accounts receivable process.
• Review the financial health of your business to gauge its standing and identify areas for improvement.

Embracing Financial Statements for Success

Financial statements are your startup's best friend and an integral component of bookkeeping for startups. Collaborating with a proficient CFO, accountant, and bookkeeper ensures accurate tracking and utilization of these statements, providing insights critical for strategic decision-making.

Balance Sheet:

• Reflects assets, liabilities, and owner's equity at specific points in time.

Cash Flow Statement:

• Records cash inflows and outflows, showcasing financial management and revenue sources.

Income Statement:

• Illustrates profitability by subtracting expenses and losses from revenue.

Cash Runway:

• Indicates available cash versus monthly expenditures, vital for financial planning.

DIY Accounting or Professional Assistance?

While some startups opt for a do-it-yourself approach to keep expenses low, others recognize the value of professional expertise. Factors such as the business's complexity, the founder's accounting knowledge, and the need for specialized services influence the decision.

Whether you choose to handle accounting internally or enlist professional assistance, the key is to prioritize accurate and consistent practices. Timely entries, reconciliation, and adherence to good accounting habits will set your startup on a path to success.

Tailoring Strategies to Your Unique Startup

Every startup is unique, and the approach to accounting and bookkeeping should align with your business's specific needs. As you steer your startup toward a promising future, remember that excellent accounting practices are not just about compliance; they are a strategic advantage that can elevate your business above the competition.

In the dynamic landscape of startups, where excitement for product promotion runs high, don't relegate your books to the backburner. Accurate books are not just a requirement; they are the foundation upon which your startup can build lasting success. Financial statements empower you to make informed decisions, ensuring your business becomes more than just another startup—it becomes a frontrunner in its industry.

With the right accounting and bookkeeping practices, your startup is poised for success. Regularly track transactions, reconcile accounts, and stay on top of accounts receivable. As you embark on this entrepreneurial journey, embrace the power of accurate financial management, and watch your startup thrive in a competitive landscape.

In today's competitive business landscape, companies are constantly looking for ways to innovate and gain a competitive edge. One valuable tool that can help businesses in their pursuit of innovation is the Research and Development (R&D) Tax Credit. This comprehensive guide will provide you with everything you need to know about R&D Tax Credit, from understanding the basics to common misconceptions.

Definition of the R&D Tax Credit

The R&D Tax Credit is a tax incentive that aims to encourage businesses to invest in research and development activities. It provides a financial benefit to companies that engage in qualifying research activities, allowing them to reduce their tax liability.

‍Qualifying research activities can include a wide range of scientific, technological, and experimental activities. These may involve the development of new products or processes, the improvement of existing ones, or the creation of innovative solutions to technical challenges.

The Purpose of the R&D Tax Credit

The primary goal of the R&D Tax Credit is to stimulate innovation and drive economic growth. By providing financial incentives for research and development, governments aim to foster technological advancements and improve overall competitiveness.

Through the R&D Tax Credit, businesses are encouraged to invest in activities that have the potential to generate new knowledge, improve existing products or processes, and contribute to the overall advancement of society. This can lead to the development of new industries, the creation of high-skilled jobs, and the enhancement of a country's global competitiveness.

Moreover, the R&D Tax Credit can also help businesses offset some of the risks and costs associated with research and development activities. Developing new technologies or products often involves a significant amount of uncertainty and financial investment. The tax credit serves as a form of financial support, reducing the burden on businesses and encouraging them to take on more ambitious and innovative projects.

Eligibility Criteria for the R&D Tax Credit

Not all businesses are eligible to claim the R&D Tax Credit. There are specific criteria that must be met in order to qualify. Let's take a closer look at these eligibility requirements.

When it comes to claiming the R&D Tax Credit, it's important to understand the qualifying research activities that your business must engage in. These activities go beyond the ordinary day-to-day operations and involve the development of new products, processes, or technologies, or improvements to existing ones. It's all about pushing the boundaries of innovation and making advancements that contribute to the overall growth of your industry.

But what exactly qualifies as a qualified research activity? Well, it's not just any kind of research. To be eligible for the R&D Tax Credit, your activities must involve a level of uncertainty and technical challenges that require experimentation and problem-solving. This means that you're not simply following a well-established path, but rather exploring uncharted territories and finding solutions to complex problems.

Now, let's talk about the expenditures that can be claimed under the R&D Tax Credit. It's not just about engaging in qualifying research activities, but also about the costs associated with those activities. These costs can include wages paid to employees who are directly involved in the research process. After all, it takes a dedicated team to bring innovative ideas to life.

In addition to wages, businesses can also claim expenses related to supplies and materials used in the research. Whether it's specialized equipment, prototypes, or raw materials, these costs can quickly add up. The R&D Tax Credit recognizes the financial investment required to conduct meaningful research and development.

Furthermore, if your business outsources certain research tasks to external parties, you may also be able to claim expenses related to contract research. This allows businesses to leverage the expertise of external organizations while still benefiting from the R&D Tax Credit.

So, as you can see, the eligibility criteria for the R&D Tax Credit goes beyond a simple checklist. It's about engaging in qualified research activities that push the boundaries of innovation, while also incurring the necessary expenditures to support those activities. By meeting these criteria, businesses can unlock the potential of the R&D Tax Credit and fuel their growth through innovation.

How to Calculate Your R&D Tax Credit

Now that you understand the basics and know whether your business is eligible, let's explore how to calculate your R&D Tax Credit.Calculating your R&D Tax Credit can be a complex process, but it is an important step in maximizing your tax benefits. There are two main methods for calculating the credit: the regular credit calculation method and the alternative simplified credit calculation method.

Regular Credit Calculation

‍The most common method of calculating the R&D Tax Credit is known as the regular credit calculation method. This method involves determining the qualified research expenses and applying a specified percentage to those expenses to calculate the credit amount.

Qualified research expenses include wages paid to employees engaged in qualified research activities, supplies used in the research process, and a portion of contract research expenses. These expenses must meet certain criteria outlined by the IRS to be considered eligible for the credit.

Once you have determined your qualified research expenses, you will need to apply a specified percentage to calculate the credit amount. The percentage varies depending on the tax year and whether your business is a startup or an established company.

It is important to keep detailed records of your research activities and expenses to support your claim for the R&D Tax Credit. This includes documentation of the research projects, employee time logs, and receipts for supplies and contract research expenses.

Alternative Simplified Credit Calculation

‍For businesses with limited resources or those new to the R&D Tax Credit, there is an alternative simplified credit calculation method. This method provides a simplified formula that allows businesses to claim a percentage of their eligible expenses as the credit amount.

The alternative simplified credit calculation method is designed to make it easier for small businesses to claim the R&D Tax Credit. It allows businesses to claim a credit equal to 14% of their eligible expenses that exceed 50% of their average qualified research expenses for the preceding three tax years.

This method eliminates the need to calculate and apply different percentages based on the tax year and business status. It provides a straightforward formula that can be easily applied to determine the credit amount.

However, it is important to note that the alternative simplified credit calculation method may not result in the maximum credit amount for all businesses. Depending on your specific circumstances, the regular credit calculation method may yield a higher credit amount.

Regardless of the method you choose, calculating your R&D Tax Credit requires careful consideration of your research activities and expenses. It is recommended to consult with a tax professional or an R&D Tax Credit specialist to ensure accurate calculation and maximize your tax benefits.

The Process of Claiming R&D Tax Credit

Now that you have a clear understanding of the eligibility criteria and how to calculate your R&D Tax Credit, let's discuss the process of claiming the credit.

‍Preparing Necessary Documentation

‍Before you can file a claim for the R&D Tax Credit, you must gather and organize all the necessary documentation to support your claim. This includes documentation of your research activities, project records, employee time logs, and any relevant financial documents.

‍Filing the Claim

‍Once you have all the necessary documentation in place, you can file your claim for the R&D Tax Credit. This typically involves completing the appropriate forms and providing the required information to the tax authorities.

Common Misconceptions about R&D Tax Credit

There are several common misconceptions surrounding the R&D Tax Credit that can often lead to missed opportunities or incorrect assumptions. Let's debunk some of these misconceptions.

Misconception about Eligible Businesses

‍One common misconception is that only large, established companies are eligible for the R&D Tax Credit. However, businesses of all sizes, including startups and small businesses, can potentially qualify for the credit as long as they meet the eligibility criteria.

Misconception about Qualifying Activities

‍Another misconception is that only groundbreaking, revolutionary research is eligible for the R&D Tax Credit. In reality, even incremental improvements and problem-solving efforts can be considered qualifying research activities as long as they meet the necessary criteria.

How Haven can Help

By now, you should have a comprehensive understanding of the R&D Tax Credit and its potential benefits for your business. Remember to consult with experts like Haven to ensure you navigate the process correctly and maximize your eligible credits.

‍Creating a startup is a thrilling and innovative pursuit, filled with the promise of new horizons. However, amidst this excitement, entrepreneurs often encounter intricate financial challenges that, if not navigated skillfully, can imperil the future of their ventures. This article delves into the frequent financial pitfalls faced by startups, offering valuable insights to avoid these missteps.‍

Thorough Financial Planning

A fundamental blunder made by startups is neglecting detailed financial planning. While optimism is crucial in entrepreneurship, it must be balanced with realistic revenue projections grounded in meticulous market research and well-defined sales strategies. These projections should align with industry benchmarks and incorporate a margin of error. Additionally, underestimating operating expenses and scaling costs can strain finances, depleting resources unexpectedly. Conduct exhaustive research on all potential expenses, including production, marketing, and administrative costs, and consider inflating estimates to accommodate unforeseen expenditures.

Efficient Cash Flow Management

Effective cash flow management is the lifeblood of any startup. It’s not just about having money; it's about having it at the right time. Proper cash flow management involves understanding the timings of your inflows and outflows. Startups often face delays in payments from clients or unexpected expenses, and without a cushion, these situations can lead to financial strain. Monitoring cash flow patterns helps in predicting periods of abundance and scarcity, enabling better financial decision-making. Maintaining a financial buffer for emergencies ensures your startup can weather unexpected storms without compromising daily operations or growth plans.‍

Clear Separation of Personal and Business Finances

Maintaining a clear distinction between personal and business finances is crucial for both financial integrity and legal protection. When personal and business funds are intermingled, tracking expenses becomes convoluted, making it challenging to understand the financial health of the business. Furthermore, it can lead to legal issues during audits or in case of business-related disputes. By establishing separate bank accounts and credit lines for your business, you ensure transparent financial reporting, simplify tax filings, and enhance your credibility, especially when dealing with investors or lenders.‍

Precise Payroll Management

Payroll management extends beyond simply paying your employees. It involves accurately calculating tax withholdings, managing benefits, and complying with state and federal regulations. Failing to comply with payroll tax laws can result in hefty fines and legal repercussions. Additionally, when your startup expands, payroll complexity increases, especially if you have employees working remotely or across different states. Adopting robust payroll software not only ensures accurate payments and tax filings but also streamlines the process, saving time and reducing the risk of errors. Keeping employee addresses up to date is essential, especially if your business operates in multiple states, as it ensures compliance with state tax regulations, avoiding potential legal complications.‍

Accurate Bookkeeping Practices

Accurate bookkeeping is the backbone of sound financial management. It involves recording all financial transactions, tracking expenses, sales, and cash flow. Detailed and organized financial records provide valuable insights into your startup’s financial health. It helps in identifying profitable revenue streams, understanding expenditure patterns, and evaluating the effectiveness of your business strategies. Beyond tax filings and investor presentations, precise bookkeeping allows you to proactively manage your finances. Regularly reconciling accounts, categorizing expenses, and conducting financial audits are essential practices. Moreover, it aids in identifying discrepancies, preventing financial errors, and ensuring that your startup’s resources are utilized optimally. If you're interested in further info on the importance of bookkeeping, check out our past post here.‍

Optimizing R&D Tax Credits

Research and Development (R&D) tax credits are an excellent way for startups to save money while fostering innovation. Many startups engage in activities that qualify for these credits, such as developing new products, processes, or software. However, claiming R&D tax credits can be complex, involving intricate eligibility criteria and documentation. Collaborating with a knowledgeable tax preparer can significantly enhance your chances of maximizing these credits. It's not just about the immediate financial benefit; it's an investment in your startup's future growth. By optimizing R&D tax credits, you can receive up to $250k that can be reinvested into your business, driving innovation and competitiveness in your industry.‍These are just some of the many challenges entrepreneurs face when starting and growing their business. Be sure to avoid these mistakes to ensure sound financials from Day 1. Have bookkeeping or R&D credit questions? Reach out today for the support you need.‍

Important Disclosure: This material is provided for informational purposes only and is not intended to be investment, tax, or legal advice and isn’t meant as a substitute for consulting your own qualified advisors.

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The IRS has presented small businesses with a game-changing opportunity. Through Provision 13902 of the IRA of 2022, which became applicable for tax years starting after December 31, 2022, a significant alteration in the tax landscape has unfolded. This provision effectively doubled the maximum amount of payroll tax research credit that a Qualified Small Business (QSB) can utilize against their payroll tax liability, elevating the cap from $250,000 to a substantial $500,000. This change doesn’t just represent a numerical shift; it signifies a potential lifeline for businesses deeply involved in research and development activities.‍

Understanding the Changes: How the Credit Works

The payroll tax credit is a tailored initiative designed to buoy businesses invested in research and development endeavors. With this recent amendment, QSBs now have the flexibility to apply up to $500,000 of this credit against their payroll tax liability, a noteworthy increase from the former limit of $250,000.‍

Changes in Tax Liability Allocation

Commencing from the first quarter of 2023, the enhanced payroll tax credit operates in two distinct stages:

1. Initially, the credit targets the reduction of the employer's share of social security tax, up to $250,000 per quarter.

2. Any surplus credit is then allocated to reduce the employer's share of Medicare tax for the respective quarter.

Furthermore, any remaining credit after both stages can be carried forward to the subsequent quarter. This mechanism equips businesses with the potential to significantly diminish their tax liability, thereby liberating financial resources for vital areas of their operations.‍

Seizing the Opportunity: Leveraging the Benefits

This pivotal amendment in the IRS provision is more than just a legal alteration; it symbolizes a transformative opportunity for small businesses actively engaged in research and development activities. By amplifying the payroll tax credit, businesses now have the freedom to channel more funds into innovation and growth initiatives. This financial breathing room not only propels individual businesses but also fuels economic development and job creation on a broader scale.

In this complex financial landscape, expert guidance becomes indispensable. For businesses seeking to navigate these intricate tax regulations, Haven stands as a beacon of support. Our team of professionals has helped countless businesses claim their R&D tax credits and offers tailor-made solutions to ensure businesses fully capitalize on these benefits. By aligning with Haven, businesses can streamline their financial processes, curtail tax liabilities, and focus on their core strengths—driving innovation and creativity. The door to unlocking unprecedented financial possibilities is wide open; don’t miss the chance to propel your business toward a future filled with prosperity and growth. Reach out to Haven today and embark on the journey to a more lucrative tomorrow.

Startup founders face the crucial task of navigating the intricate world of cash management to ensure their companies' survival and growth. In this guide, we'll delve into essential cash management strategies tailored to preserve your startup's capital, maximize liquidity, and minimize risk. Given the current financial landscape of banks in the US, securing your startup's cash while generating yield has never been more critical.‍

‍Understanding Treasury Management

‍Treasury management involves overseeing a company's financial resources to meet its financial needs while managing risk. Unlike large corporations like Goldman Sachs, startups may not have the resources or personnel for sophisticated treasury operations. However, VC-backed startups often possess substantial capital that can be strategically deployed to generate yield.‍

‍Three Criteria for Cash Management: Yield, Risk, and Access

‍Effective cash management requires a delicate balance between three essential criteria:

• Yield: Seek opportunities for a reasonable return on your funds while prioritizing safety and liquidity. Although generating investment returns is not your primary role as a founder, some yield can support your startup's growth.
• Risk: Avoid high-risk investment options like the stock market or high-yield bonds. As a fiduciary, you are responsible for managing company assets prudently, and major investment losses can have legal implications and impact your relationships with investors.
• Access: Ensure easy access to funds when necessary, especially for business expenses. Utilize savings accounts, cash-equivalent options, and money market accounts for liquidity.

‍Best Yield for a Startup's Cash

In mid-Q1 2023, startup founders have the chance to earn yields ranging from 3% to 5% on their idle cash. Gaining yield is vital for startups, as it can provide additional income to support growth. Money market accounts offer a higher interest rate while maintaining liquidity, making them a favored choice. Certificates of deposit (CDs) are another option, although they offer higher interest rates, they come with a fixed term and early withdrawal penalties, making them slightly less liquid. However, safety and liquidity should take precedence over chasing higher yields, given the risks associated with riskier investments. Striking a balance between yield and capital preservation ensures they can navigate uncertainties and seize growth opportunities, contributing to their long-term success.‍‍

‍‍Safely Managing Startup Cash

‍In the early stages, startups often encounter the challenge of generating meaningful revenue or profits. However, for companies that have successfully secured venture funding, cash management assumes paramount importance. The primary objectives are to preserve the company's capital, maximize liquidity, and explore safe yield opportunities.Low-risk investments such as Treasury bills, bonds, certificates of deposit (CDs), and high-quality corporate bonds offer opportunities for yield without excessive risk. By creating a bond ladder with staggered maturity dates, startups can access funds as needed, even if a small penalty is incurred for early withdrawal.

Startups frequently seek treasury management options that offer more comprehensive protection than the $250k FDIC insurance limit. These solutions typically fall into three categories:

• Insured Cash Sweep Accounts: These accounts distribute deposits across multiple FDIC-insured banks, ensuring that your balance at any particular bank remains below the $250k insurance limit. Funds are readily available and relatively secure.
• Government Bonds: Widely regarded as among the safest investments globally, government bonds and bills provide a secure option for deploying your cash. Collaborating with a reputable banking partner can help you navigate the nuances of selecting the right maturity date.
• Money Market Funds: Although not FDIC-insured, money market funds invest in secure, short-term securities. They are generally considered safe. However, it's crucial to collaborate with a reliable treasury management partner to determine if they align with your startup's cash management goals.

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‍‍Access to your Funds‍

Readily available funds, which are the lifeblood of startups, must be placed in liquid and easily accessible accounts or assets. These can include traditional savings or checking accounts at banks, where funds can be withdrawn quickly for daily operational needs. Startups can also consider using cash-equivalent options, like short-term government bonds or commercial paper, which combine safety with relatively easy access to cash. These examples illustrate the importance of balancing liquidity with yield when parking startup funds in various financial instruments, ensuring that the money remains readily available for both expected and unexpected needs.‍

‍Sound Cash Management

‍In a nutshell, managing cash wisely is crucial for startups. It's like walking a tightrope between making some money, keeping things safe, and being able to access your funds when needed. Stick to safer options like Treasury bills, bonds, and consider spreading out your investments over time. If you have more cash than the FDIC insurance limit of $250k can cover, there are options like Insured Cash Sweep Accounts, government bonds, and Money Market Funds, but make sure to work with trusted financial partners. By following these simple principles, startup founders can protect their money, have cash ready when they need it, and even earn a little extra, setting the stage for long-term success.‍

The Foundational Role of a Pitch Deck

Pitch decks are the cornerstone of startup success, serving as the essential blueprint for your entrepreneurial journey. In this educational guide, we'll embark on a comprehensive exploration of the art of creating a compelling pitch deck—a critical tool that can unlock funding, strategic partnerships, and exponential growth for your startup. Gain profound insights from exemplary examples and expert guidance as we navigate the path to startup triumph together.‍

Understanding the Significance of a Pitch Deck

Pitch decks are more than just presentations; they are your startup's voice, carefully distilled into a visual narrative. Let's delve into the pivotal role they play in your entrepreneurial endeavors:

1. Capturing Hearts and Minds

In today's information-saturated world, a thoughtfully constructed pitch deck captures the attention of your audience swiftly. Its captivating visuals and succinct content have the power to immerse investors and stakeholders in your startup's compelling story.

2. Crafting a Persuasive Narrative

Pitch decks provide the canvas for you to narrate your startup's journey, from the problems you're addressing to the monumental impact you aim to achieve. They distill complex ideas into a compelling storyline that resonates deeply with your audience.

3. Showcasing Untapped Potential

With a robust pitch deck, you can spotlight vast market opportunities, your innovative solutions, tangible traction, an exceptional team, and financial projections that vividly illustrate your startup's boundless growth potential.

4. Invoking Investment and Support

Ultimately, a meticulously structured pitch deck has the capacity to sway investors towards decisive action—whether that's investing capital, forging strategic alliances, or initiating profound discussions.‍

Insights from Exemplary Pitch Decks

Now, let's embark on an enlightening journey through insights derived from outstanding pitch decks:

1. Front Series A Deck

‍This source unveils the pitch deck used by the startup Front during its Series A funding round. The deck emphasizes the importance of articulating the problem, presenting the solution, and showcasing the market opportunity.

2. Best Pitch Decks

‍An extensive collection of pitch decks reveals a wealth of best practices. Across these examples, a compelling narrative, visual appeal, and a clear call to action emerge as common elements of success.

3. Uber VC Pitch Deck

‍Uber's original pitch deck is legendary. It serves as a testament to the power of storytelling in pitch decks. Addressing the problem, solution, and market size effectively, it played a pivotal role in the company's success.‍

‍4. Startup Pitch Deck Examples

‍A compilation of pitch deck examples highlights effective structures. Key elements such as market validation and competitive analysis are showcased, providing valuable templates for founders.

5. Billion-Dollar Startup Pitch Decks

‍This source presents pitch decks from billion-dollar startups, shedding light on the strategies that contributed to their success in securing significant capital.

6. 15 Great Pitch Decks from Successful Startups

‍Fifteen stellar startup pitch decks are featured here, offering a wealth of inspiration and actionable insights.‍

The Takeaway

In the dynamic world of startups, a well-crafted pitch deck can be your secret weapon. It's your opportunity to make an undeniable case for your venture, attract investors, and propel your startup toward success. Whether you're crafting your first pitch deck or refining an existing one, these insights from accomplished startups serve as a valuable guide.While there's no one-size-fits-all formula for a perfect pitch deck, these examples and expert tips can help you create a presentation that resonates deeply with your audience and advances your startup's mission.

When you step into the world of entrepreneurship as a startup founder, you're embarking on a journey that's both exhilarating and challenging. As you navigate the ups and downs of building a business from the ground up, managing your personal finances is a critical component that often doesn't get the attention it deserves. Whether you're on the cusp of a life-changing financial windfall or facing the risk of your equity becoming worthless, taking control of your personal finances is vital. In this blog, we'll explore key considerations and best practices for startup founders to master their personal finance.‍

Equity: Understanding Your Starting Point

As a founder, you likely received restricted stock awards (RSAs) as a form of equity in your company. These RSAs are shares that you purchased at a minimal cost. If you haven't already, it's essential to understand the significance of filing an 83(b) election. This action informs the government that you're opting to pre-pay taxes on the shares, which can result in preferential tax treatment. Properly handling this step early on can save you significant money in the long run.Moreover, consider exploring the qualified small business stock (QSBS) tax exemption. If you meet the criteria—holding the shares for five years, your business having less than $50 million in assets when you acquired the shares, and owning original, issued shares from a qualified C-corp—you could avoid paying taxes on the first $10 million of gains upon selling your stock.‍

Tax Strategies: Making Informed Decisions

While there are no "silver bullets" to dramatically reduce your tax burden, understanding your options and planning accordingly is crucial. Some founders consider moving states to save on state taxes. However, remember that choosing your location should align with broader considerations, such as community and lifestyle, not just tax implications.Hiring a capable accountant might seem like a significant investment, but the peace of mind and the assurance that you'll navigate financial complexities correctly can be well worth the expense. As you grow and manage equity decisions or delve into more complex financial matters, a Certified Public Accountant (CPA) can provide essential support.‍

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Getting Liquidity: When and How to Sell Secondary Shares

As your startup thrives, you might explore the option of selling secondary shares. Ideally, this should be done with the blessing of your board, and you might also extend this opportunity to early employees as a reward for their contributions. However, selling secondary shares requires a careful analysis of the opportunity cost. Consider both the immediate liquidity and the long-term potential.Imagine your company is raising a Series C, valued at $250 million, and you own 20% of the shares (a value of $50 million). If you're allowed to sell $5 million in secondary shares (10% of your shares), assess the opportunity cost. The best-case scenario could be a $5 billion IPO without further dilution, in which case your shares would be worth $100 million. Weigh this against the worst-case scenario where your company doesn't succeed, and your shares become worthless. The decision to sell secondary shares involves a gut-check weighing immediate liquidity against the potential long-term gains.‍

Investing: Strategies for Wealth Building

To build and safeguard your wealth, start by creating a cash flow plan to determine your personal expenses and salary. Working with your board and finance leadership can help you establish a fair salary. If your startup's valuation and revenue justify it, don't hesitate to pay yourself a substantial income. However, ensure it's a figure you'd be proud to see in the news.Before investing, set aside cash for short-term expenses, including an emergency fund (3-6 months of living expenses), taxes for the next year, and other significant life goals like a house payment or a wedding. This reserved cash defines how much you can invest.Your network is a unique asset as a founder. Consider angel investing in startups launched by friends or explore opportunities to become a scout for a VC fund. While some may view this as a distraction, it can be a rewarding way to leverage your network and gain further financial insights.‍

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Estate Planning: Preparing for the Future

Though it may not be as exciting as managing equity or making investments, estate planning is incredibly important. If you lack a trust or will when you pass away, your estate may go through probate, making your assets public and incurring additional expenses. Setting up a trust can help you avoid this.Two types of trusts come into play: revocable trusts and irrevocable trusts. Revocable trusts help avoid probate, while irrevocable trusts can provide tax advantages. Assets held in an irrevocable trust are outside your estate and can benefit from estate tax exemptions.‍

Lifestyle: Balancing Financial Growth and Personal Burn Rate

As a founder, sudden wealth can be challenging, especially if most of your assets are illiquid. Ensure your personal burn rate aligns with this financial reality. Prioritize building your business over indulgent personal expenses. Find opportunities to make a positive impact, both through your startup and in philanthropy, which can be satisfying and encouraging.‍

Protect Your Future

Mastering personal finance as a startup founder is not just about managing money; it's about securing your financial future and setting the stage for your business's success. The financial decisions you make today can have a significant impact on both your personal and professional life. Remember that there are no one-size-fits-all solutions, but understanding your options and planning proactively can make all the difference. Consult with professionals in tax, law, and finance to ensure you're on the right path to success.‍‍‍

Important Disclosure: This material is provided for informational purposes only and is not intended to be investment, tax, or legal advice nor a recommendation to buy, sell, or hold any securities or investments. This material is not intended to be relied upon as a forecast, research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy.

Financial statements are like your business's financial report cards. They provide valuable information that goes beyond just numbers, helping you make informed decisions for your business. In this guide, we'll dive into the three most important financial statements: the balance sheet, income statement, and statement of cash flows. By the end, you'll have a good understanding of how these statements work together to guide your business toward its goals. Lets dive in.

The Balance Sheet:

Think of the balance sheet as a look into your business's finances at a certain point of time. It shows what you own (assets), what you owe (liabilities), and what's left for you (equity). This statement is crucial for business owners and stakeholders looking to assess the financial health of a company.

Now, let's break down the balance sheet equation: Assets = Liabilities + Equity.

‍Assets: These are things your business owns, like cash, equipment, or even patents.

‍Liabilities: These are debts or things you owe, like loans or unpaid bills.

‍Equity: Equity is what's left after you subtract what you owe from what you own. It's like a reward for business owners. Understanding equity tells you how well your business is doing financially.

The balance sheet serves as a snapshot of your business's financial position at a specific moment in time, revealing the connection between assets, liabilities, and equity. By grasping the different sections of the balance sheet, you gain valuable insights into the components that drive your business's financial well-being. The balance sheet is a core part to guiding you toward informed decisions and a deeper understanding of your business's financial success.‍‍

Balance Sheet example:

The Income Statement:

The income statement, also recognized as the profit and loss (P&L) statement, is like a money story. It tells you how much money you made, how much you spent, and if you made a profit or a loss during a certain time. Here are the key parts:

‍Revenue: This is the total money your business earned from selling products or services.

‍Cost of Goods Sold (COGS): It's the money you spent to make the products you sell.

‍Gross Profit: This is what's left after you subtract COGS from your revenue. It shows if your products or services are profitable.

‍Operating Expenses: These are costs of running your business, like rent, wages, and advertising.

‍Net Profit: This is your bottom line. It's what's left after you subtract all your expenses from your revenue. It's the money your business keeps.

Unlike the balance sheet, which offers a fixed perspective, the income statement tracks changes over a time period. This allows business owners or stakeholders to see how effectively a company is generating profits and managing expenses. You now have the ability to better plan ahead as you have a complete view of your revenues and expenses and how they may vary per month or year.‍

Income Statement example:

Statement of Cash Flows:

A statement of cash flows is a financial document that tracks the inflow and outflow of cash within a business over a specific period of time, typically a month, quarter, or year. It provides a detailed breakdown of how cash is generated and used in the company's operations, investments, and financing activities. The statement of cash flows is broken into three parts:

‍Cash Flows from Operations: This is the cash inflows and outflows from your regular business activities. It includes cash received from customers, payments to suppliers and employees salaries. This can indicate how well a company manages its day to day operations to generate cash.

‍Cash Flow from Investing Activities: This is money typically spent on long term assets. These activities can involve buying or selling property and equipment or the purchase of stocks or securities. Cashflows from investing activities can show how a company is investing in it's future growth.

‍Cash Flow from Financing Activities: Here, you see money you got from obtaining loans, issuing stock or paying dividends to shareholders. This part reflects how the company raises capital and how it returns capital to its investors.

The statement of cash flows is a crucial financial tool because it helps business owners and investors understand how a company manages its cash resources. It also assists in assessing a company's liquidity, financial stability, and ability to fund its operations and growth.‍

Statement of Cash Flows example:

Using Financial Statements Wisely:

In a nutshell, financial statements are more than just boring papers – they're your secret weapon to making good choices for your business. By getting the hang of the balance sheet, income statement, and statement of cash flows, you'll be on your way to financial success.Think of financial statements as a constant source of information that guides your financial choices and supports your business growth. Whether you're a business owner, investor, or lender, these statements are your best pals for unlocking your business's full potential.‍

When it comes to growing your business, every dollar matters. That's where R&D tax credits come into play. These incentives offer a fantastic opportunity for companies of all shapes and sizes to recoup some of their research and development expenses. In this article, we'll break down the payroll version of R&D tax credits, making a complex topic easy to understand.‍

Qualifying Activities for R&D Tax Credits

First things first, what activities qualify for R&D tax credits? At Haven, we specialize in uncovering those qualifying activities that often go unnoticed. This includes not only technical roles but also non-technical ones. The great news is that we've found credits for companies across various industries, sizes, corporate structures, and even for those not yet turning a profit.The key to R&D tax credits lies in innovation and problem-solving. If your company engages in activities that seek to develop new products, improve existing ones, or enhance processes through technological advancements, you're likely eligible. This could involve software development, engineering, scientific research, or even the creation of new manufacturing techniques.Your company may be able to apply the R&D tax credit against payroll tax if the following are true:

• You’ve never had gross receipts or only had them within the last five years.
• You have less than $5 million in gross receipts during the current year.
• You have qualifying research activities and expenditures that meet the IRC Sec. 41 four-part test.

Business Entity Types and Eligibility

One might wonder if their business entity type affects eligibility for R&D tax credits. In most cases, it doesn't matter. All business types, including S Corporations, sole proprietorships, partnerships, corporations, and LLCs, qualify for R&D tax credits. The only exception is non-profit organizations (501c3s) because they don't have tax liabilities to offset with credits.This inclusivity is a key strength of the R&D tax credit program. It encourages businesses of all sizes and structures to invest in research and innovation, promoting economic growth and technological advancement across the board.‍

R&D Tax Credits for Startups

You might be wondering if your startup, which isn't profitable yet and isn't paying taxes, can still apply for R&D tax credits. The answer is a resounding "yes!" Even early-stage, pre-revenue startups can leverage federal R&D credits against their payroll taxes. If you haven't set up payroll yet, don't worry; you can carry these credits forward as assets on your balance sheet until you're ready to use them.For startups, R&D tax credits can be a lifeline. They provide a way to offset some of the costs incurred during the crucial early stages of research and development. This financial boost can help startups channel resources into innovation and growth, setting the stage for future profitability.‍

Your Potential Savings Opportunities

Companies that develop new or improved products, processes, or software can:

• Generate up to $250,000 annually until December 31, 2022, after that the Inflation Reduction Act increased the election to $500,000 in R&D credits to use against your payroll tax.
• Receive a credit equal to 10% of your eligible R&D spend.
• Generate payroll credits for up to five years—for up to $2.5 million in total credits.

The additional $250,000 would be used to offset the employer-paid Medicare payroll tax of 1.45% each calendar quarter. The R&D payroll tax credit attributable to the employer-paid Medicare tax must not exceed the tax imposed. Any unused R&D credits will be carried forward and applied to a succeeding calendar quarter as a credit.‍

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How the Process Works

Now, let's take a closer look at how the process of claiming R&D tax credits against your payroll tax liability works:

• Assess Eligibility: The first step is to determine if your business meets the eligibility criteria for R&D tax credits against payroll tax. This includes evaluating your gross receipts and research activities.
• Identify Qualifying Activities: Work with professionals to identify the specific research and development activities that qualify for credits. This involves a thorough examination of your projects and expenses.
• Calculate the Credits: Once qualifying activities are identified, professionals will calculate the credits you're eligible for.
• Documentation and Filing: Proper documentation is essential. Our professionals will help you compile all the necessary documentation and file the appropriate forms to claim your credits.
• Carryforward: Any unused credits can be carried forward to subsequent quarters, ensuring that you make the most of this valuable incentive.

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Confidently Claim Your Credits

Each payroll provider or professional employer organization (PEO) may have a different process for handling the credits, and businesses are often left to assess these nuances on their own. Our professionals are highly experienced in navigating these distinctions and can even file claims on your behalf if needed.Credits that aren’t properly documented also risk rejection by taxing authorities. Our detail-oriented team will help you identify and compile the documentation needed to advance through the credit process from start to finish.‍

Seizing the Potential of R&D Tax Credits with Haven

In conclusion, R&D tax credits can be a game-changer for your business, whether you're a startup on the cusp of innovation or an established corporation seeking to drive further growth. These credits provide a valuable opportunity to recover costs, invest in innovation, and bolster your financial resources.At Haven, we specialize in uncovering qualifying activities that often go unnoticed and assisting businesses in confidently navigating the complex process of claiming R&D tax credits against payroll tax liability. With our professionals by your side, you can harness the power of R&D tax credits to fuel your business's success, drive innovation, and secure a brighter future.‍

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The Dangers of Neglecting Bookkeeping

In the fast-paced world of Silicon Valley, where innovation knows no bounds, there's a tale that's becoming all too familiar. It's a story of startups that rise to glory and then crash and burn, leaving everyone asking, "How did this happen?" The recent FTX meltdown, the abrupt shutdown of Fast, and Bird's admission of revenue overstatement are just a few chapters in this troubling pattern.On the surface, it's easy to dismiss these incidents as cases of fraud or bad leadership, but there's a more insidious problem at play here—one that affects nearly every startup. It's a problem that often lurks in the shadows, underestimated and overlooked: founders not caring about bookkeeping.Tech startups are notorious for being data-driven, meticulously measuring metrics like Monthly Active Users (MAUs), Daily Active Users (DAUs), Key Performance Indicators (KPIs), Net Promoter Scores (NPS), downloads, churn, and retention right from day one. Yet, curiously, the numbers in the financial books are often treated as an afterthought.This cavalier attitude towards bookkeeping can set a dangerous precedent, leading to mismanagement at best and outright malfeasance at worst. To illustrate this point, let's dive into a few cautionary tales.Fast, the one-click checkout sensation, soared to success one day and vanished the next. TechCrunch reported a burn rate that skyrocketed to "as high as $10 million per month," far exceeding revenue and gross profit. The result? Fast simply ran out of money. The startup's rapid demise can be attributed to one significant oversight—the neglect of financial records.Bird, the electric scooter giant, found itself in hot water when it admitted to the SEC that it had overstated its revenue for two years. The reason? A mistake in recording revenue versus deferred revenue, which might be understandable for someone not well-versed in bookkeeping but is concerning for a publicly traded company.Even FTX, a crypto exchange, saw its fortunes plummet due to a seemingly minor issue—internal labeling of bank-related accounts. This labeling error led to a miscalculation that transformed the company from a $32 billion juggernaut to bankruptcy within 48 hours.‍

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Have Clean Books from Day 1

From an external perspective, these issues might appear as deliberate attempts to evade taxes or conceal a company's true financial health. However, in most cases, they stem from founders lacking the knowledge to handle these matters correctly, assuming they aren't at a stage that warrants better financial systems, or simply not knowing where to find expert guidance.Naturally, nobody embarks on the entrepreneurial journey excited about managing financial books. The motivation typically centers on changing the world through AI, simplifying lives with software, or revolutionizing an industry. This is the way it should be. Leaders should focus on their mission and vision. However, there's a stark distinction between finding bookkeeping tedious and ignoring it altogether.In some respects, it's understandable why bookkeeping can become a second-tier priority. The venture capital model prevalent in Silicon Valley prioritizes growth over immediate profitability, granting startups years to scale. The issue arises when founders treat this phase as an everlasting state, overlooking critical financial housekeeping.For some startups, the realization of bookkeeping's importance dawns when they contemplate going public. Preparing for public markets can be an arduous process, often prompting companies to hire a CFO late in the game. The first task at hand is cleaning up past financial practices and revamping systems to ensure the books can withstand Wall Street's scrutiny. This process frequently uncovers issues such as inaccurately booked revenue, incorrect margins, and duplicate payments. In the worst-case scenario, poor financial records can derail or delay the company's plans to go public, as exemplified by WeWork's high-profile IPO withdrawal.‍

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Choose Haven and Save your Precious Time

‍It's disheartening to witness this cycle repeatedly because it doesn't have to be this way. Founders can change the narrative by shifting Silicon Valley's culture to recognize that bookkeeping is a mission-critical function. Implementing robust financial systems from day one can spare startups the pain of years of bookkeeping cleanup. It allows them to allocate resources to unique company priorities like product development, customer satisfaction, talent acquisition, and strategic partnerships where a CFO can make a real impact. In essence, it empowers them to focus on building the future of their business rather than rectifying past mistakes.The saga of Fast serves as a poignant reminder of the consequences of neglecting bookkeeping in the startup world. It's a story of a startup that had everything going for it but failed to appreciate the hidden hero of financial management. As the startup landscape evolves, founders must recognize that bookkeeping is an integral part of their journey, vital for long-term success, and a safeguard against becoming tomorrow's cautionary tale.‍‍

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