3 Reasons Why Start Up Founders Should Outsource their Bookkeeping
                     3 Reasons Why 
Start Up Founders 
Should Outsource 
their Bookkeeping
When most people think about starting a new business, 
one of the first things that come to mind is how they’re 
going to manage their finances. The reality is that many 
start-ups don’t have any experience in this area and will 
need to find someone who can help them out. In this 
blog post, we’ll discuss why should you outsource your 
bookkeeping. How much can you expect it to cost? And 
3 benefits of outsourcing your bookkeeping needs for 
start-up founders.
Why should start-ups consider outsourcing 
bookkeeping?
There are probably more valuable things you can be 
doing in the start-up phase of your business than 
learning the difference between a debit and a credit. 
Generally, a founder juggling the responsibility of sales, 
product, cashflow, human resources, compliance and 
more – many of these things can drain the enthusiasm 
they had for their business. By out-sourcing key roles to 
professionals, you will have more time for growing your 
business and generating new ideas that can help it 
grow even further..
If you want to scale your business, you will want to 
draw on the skills and experience of an experienced 
bookkeeper or accountant who has been on this 
journey with a business before
Financial record keeping and reporting are critical in 
creating a solid foundation for your company’s future 
success. Your financial reports (and forecasts) will form 
an integral part of conversations with any shareholders. 
For many start-ups and early-stage companies, the 
“accounting and finance department” may initially 
consist of the founder – with the assistance of a good 
bookkeeper like iKeep and a tool like Xero. 
This is a great place to start, but it may not be enough 
for your growing company. When you’re in the early 
stages and still working with limited resources, you 
need all hands-on deck to keep things running 
smoothly and efficiently. That means focusing more 
time on building relationships within your community 
and securing new customers rather than spending 
hours behind the desk.
How much does it cost?
The costs a start-up incurs for bookkeeping will depend 
upon many variables. Company size and lifecycle, 
number of monthly transactions, number of employees 
and how payroll is processed, number of expense 
accounts, credit cards, invoices to send out, bills to pay, 
number of balances to reconcile, etc. In addition to 
these basic bookkeeping activities, your costs will be 
impacted by how your accounting systems, policies, 
and procedures, and reporting needs are set up and 
administered. The typical cost of outsourcing your 
accounting and bookkeeping can range from $400 to 
$5,000 per month for small businesses.
An outsourced bookkeeper provides several benefits:
One of the biggest benefits of outsourcing your 
bookkeeping needs is that you’ll be able to get it done 
at a lower cost than hiring someone internally. Instead 
of having to hire someone, who will likely work part-
time and require health insurance, training, etc., you 
can outsource. One of the biggest perks of getting an 
outsourced bookkeeper to perform bookkeeping tasks 
is that you don’t need to worry about surprise costs. 
benefits and the equipment that a regular employee is 
entitled to. All you must do is hire a virtual bookkeeper.
Free up more of your time for important tasks – One of the 
allures of owning a business is that you get to choose your 
schedule. But when it comes time to do bookkeeping, it’s easy 
for this task to take up valuable hours in your day. By outsourcing 
these tasks, you’ll be freeing up more time for other important 
activities, allowing you to focus on growing your company.
Monitor your KPIs and stay on top of your Cashflow – 
Whatever your type of business, it’s essential to know 
your company’s financial standing. You need three 
major reports to determine this: cash flow statement, 
income statement, and cash disbursement schedule. 
With the help of a professional bookkeeper, monitoring 
your business’s KPIs becomes so much easier. Also, a 
good bookkeeper will check, update, and follow up on 
payments. They can also track receipts, note accounts 
payables and receivables, balance your accounts, and 
give you an accurate picture of your cash flow.
For many start-ups and early-part companies, the 
“accounting department” may initially consist of the 
founder – perhaps with assistance from a good 
bookkeeper like iKeep and a tool like Xero. A good, 
outsourced bookkeeper is an excellent choice for start-
ups and early-part companies. They can help you keep 
track of accounts payables and receivables, balance 
your accounts, and give you a clear picture on cash 
flow. With the help of a professional bookkeeper 
monitoring your business’s key performance indicators 
(KPIs) becomes much easier.
All the best with your next venture!