7 signs your startup should outsource accounting

As your startup continues to grow, so does the complexity around fiannce and accounting - liquidity planning, payrolling, VAT, tax filings, just to name a few of the important topics. Outsourcing these tasks offers numerous advantage, including clean financial statements for investor presentations, efficient tax filing following Swiss regulations standards, expert support during audits, and most important relief from various time-consuming accounting tasks. Here are seven indicators that suggest that you might benefit from an outsourced finance & accounting function:

 

1. You are preparing for the next round

When your startup reaches for example the Seed or Series A stage, its financial landscape becomes quickly complex. Outsourcing accounting at this point ensures the delivery of accurate financial statements, and therefore allows potential investors to assess your company based on solid financial data. Therefore, ensuring transparency which, in turn, fosters confident investment decisions among investors.

 

2. You lack confidence in handling social security and other crucial payroll topics yourself

As your team expands with full-time employees, managing payroll and ensuring compliance with tax regulations become crucial tasks. It gets especially complex when hiring non-Swiss individuals. Outsourced accounting can handle these responsibilities efficiently, freeing up valuable time to focus on core business activities.

 

3. You postpone the year end closing and/or missed claiming tax credits

When preparing your startup's corporate tax returns, the need for outsourced accounting might become apparent as you most probably simply lack the time to do it. It is a time-consuming process, but maintaining accurate financials based on accounting best practices streamlines the tax filings, minimizes surprises, and maximizes savings, especially when claiming R&D tax credits.

 

4. Youre facing a tax audit

Facing a federal or state tax audit can be daunting, but with professional outsourced accounting expertise, you are well-prepared. Your accounting partner will ensure clean and accurate documentation, provide support throughout the audit process, and help you maintain proper accounting practices for the future. Hence, minimizing the likelihood of regulations violations and therefore reducing costs of paying penalties or second audits.

 

5. You are dealing with time-consuming manual processes and feel always a step behind

As your startup progresses, your basic accounting systems may no longer be adequate, respectively, sufficient. When considering upgrading to more sophisticated financial tools such as accounting software, ERP, payroll, or cap table management, collaborating with experienced finance professionals through outsourced accounting proves beneficial. They will assist in selecting, configuring, and maintaining the best accounting tools as you scale. Thus, guaranteeing a cost-effective approach that yields high-quality results, tailored to your company's specific requirements.

 

6. You dont have an accurate and monthly financial reporting

Accounting complexities often increase as companies grow as well as when regulations change, making it challenging for non-professional accountants like startup founders to keep up with regulations and practices. Discovering mistakes or sloppy practices in your books is a clear indication that it's time to engage outsourced accounting services. They will rectify errors and ensure accurate financial reporting.

 

7. Youre not dedicating enough time on what you do best - your product / service

Initially, it's common for a member of the founding team to manage accounting. However, as your startup expands, dedicating excessive time to accounting can divert attention from crucial leadership activities. If your CEO or management team members are spending significant hours on accounting tasks, it's wise to consider outsourcing, enabling them to refocus on strategic growth initiatives.

 

For startups, outsourcing accounting often proves more practical than hiring a full-time accountant. Outsourcing provides scalability, access to specialized resources, minimizing costs, and the freedom to allocate valuable time to essential business functions. Don't be intimidated by outsourcing: GetGoing offers professional accounting services. Explore our accounting for startups and contact us for additional information.