The ABCs of Outsourcing for Startups: Accounting, Bookkeeping, and Chief Financial Officer Services

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Outsourced ABCs for startups

Startups are like words and language, they develop according to their business ABCs: Accounting, Bookkeeping, and a Chief Financial Officer. Without your business ABCs your company name won’t become a verb.

Since 1999, tempCFO has been the go-to for small and medium-sized businesses (SMBs) in need of outsourced business ABCs. With offices in San Jose, Los Angeles, Boston, and New York, tempCFO ensures great customer service. Now, with inDinero’s accounting technology, we provide our early stage clients even greater financial flexibility.

tempCFO has the experience, fintech, and expertise to get your startup ready for Alphabet. If, that is, Alphabet is the best investor for your business.

Take five, and keep scrolling for highlights of tempCFO’s best advice for startup success.

A – Accounting Services Are Better Outsourced At The Startup Stage

Startups need an SMB accountant. Given that poorly conceived and constructed financial systems and policies are a major reason most startups fail, that’s a big tip!

Accounting is essential to building, running, and growing your startup. SMB accountants are strategic partners because…

A. Taxes are a major concern for most businesses, but there is more to it than filing with the IRS to avoid a fine. SMB accountants can help with business formation (e.g. setting up billing and collection procedures), choosing accounting software for your business, establishing payroll, audits, and instituting proper controls that prevent things like employee theft.

B. Experienced SMB accountants know about state and municipal regulations and compliance for commerce. They could tell you some stories!

C. SMB accountants are a financial asset. Accountants speak an investor’s language: data, figures, and growth projections.

Here’s a money-saving tip for startups. You do not need to employ an accountant. Outsourcing accounting saves startups money and the hassle of managing an employee.

B – Bookkeeping Tells Tales of Fortune or Tragedy—Never Comedy

Bookkeeping is the careful tracking of a business’s financial data used to create financial reports of good fortune or tragedy. Think about it, an auditor sitting across your desk chuckling (!) at your balance sheet is not funny. Bookkeeping is always serious business.

Successful startup CEOs know their skillset and their core competencies. Bookkeeping, though critical for cash flow management, forecasting, and financial reporting, is not often in the job description of a startup entrepreneur. tempCFO is the exception, of course! These tips on startup bookkeeping are no joke.

A. Entrepreneurs either like to keep track of the numerous financial transactions of their startup or they do not. If you do not like to keep track of receipts, pay the bills, invoices, and payments, and bank reconciliation—outsource bookkeeping.

B. Keep your business banking (and credit cards) separate from your personal banking. This saves time and increases transparency. When using tools such as inDinero’s mobile accounting To-Do List app, a business bank account makes these convenient tools much more efficient and effective.

C. Without accurate financial data, a CEO cannot make the decisions needed to lead a startup forward. If management does not have a clear picture of the financials, nothing clears the financial fog better than an audit.

Outsourced bookkeeping services can achieve the highest level of accuracy, efficiency, and customer service that busy SMB CEOs need. Get in touch to learn how tempCFO’s team approach to accounting and bookkeeping can save you time and money.

C – Chief Financial Officer Services Make Money Cents And Management Sense

Outsourcing CFO services is a smart move for companies of all sizes and stages – early, growth, and exit. A chief financial officer is a business partner when they have a deep understanding of your business model, valuation, and can help you surpass management and investor milestones. A CFO is an advantage when they also can connect your startup to investors.

At the end of the day, outsourcing a CFO who is focused on your startup’s financial ‘big picture’ and ably communicates your financial story to management and stakeholders, makes money cents and management sense for startups.

Startups benefiting from an outsourced CFO will tell you:

A. There is more time in the day with a CFO. One telltale sign that it’s time to hire a CFO is that you hardly have time to hire a CFO! Not only will the CFO afford you more time and energy for your core competencies, but your CFO will manage the finances more effectively.

B. The future will be clearer with a CFO lighting your startup’s way toward it’s ultimate destination (IPO, M&A, or ICO). Give yourself a few more minutes to read our startup advice on planning for your exit at the start.

C. A CFO turns milestones into celebrations of savvy business decisions informed by a well-run financial system and team. tempCFO has the capacity, experience, and technology for any financing process like debt financing or capital raising.

Finally, starting something from the ground up is exhilarating and exhausting. Did I hear you say, ‘decision fatigue’? For more helpful advice, tips, and resources to keep you ahead of the game, sign up for tempCFO’s latest article, here.

tempCFO knows its outsourced ABCs from early stage to exit. Contact us to learn how we can help you make a winning financial statement, every time.

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