Bootstrapping a tech business is not for the faint of heart. You’re uniquely passionate, competitive, and confident in what you’ll be able to build, so much so you’ve decided to do it with very little or no funding. Through each step of getting your business off the ground, you’re looking for ways to minimize costs while maximizing opportunities.
But when is bootstrapping not enough? When is finding the cheapest option not going to help move your business forward, and could actually cause it to fail?
Your finance function is not where you want to cut corners or save on costs. Your tech business needs a skilled and diligent accountant who will prioritize your growth, take you beyond standard compliance, and provide the tools you need to make more money in the long term, even if that means spending more in the present.
A growing business needs more than compliance
You already know that outsourcing your accounting is the best way to get the most for your money. You’ve heard that you can get the skills of an entire inhouse finance team for the price of a part time employee. And, you figure, you don’t even need anything that complicated. For a couple hundred quid, you can get some standard bookkeeping and stay compliant with HMRC.
But a tech or SaaS company in its early stages needs way more than cashflow bookkeeping and compliance. For a business to grow, thrive, or even just survive in this industry, you need an accountant on your team who will proactively work towards your future success.
For example, you’ll likely want to become VAT registered within the first six months of operation even though you don’t have to. Getting the VAT back on what you spend will be vital for your bootstrapped business, but HMRC doesn’t give that money up easily. Especially for new businesses with no established track record, they’ll likely raise a review before they pay out.
You don’t have time to be waiting on funds that are rightfully yours, especially if you haven’t moved into the customer-funded stage and are still operating from your savings. The proper finance team will have the experience and the tenacity to chase every VAT reclaim you can get, with the answers to all of HMRC’s questions so you have the money you need in your account as soon as possible.
The wrong team could cost you in the long term
There are many firms out there who offer six months free accounting or a heavily discounted rate for new clients. If you’re bootstrapping, this feels like an ideal way to save costs while still getting the service you need.
What these firms don’t tell you is that they’ll put your accounts in the hands of a junior employee, working with an homogenous approach and entirely focused on compliance. The best case scenario is your books will stay clean but with no vision or preparation for your future. The worst case scenario is this unequipped accountant will make serious errors in your accounts that could potentially tank your business.
We had a prospect come to us a few months ago and ask if we would lower our quote. Though we were their first choice, they had been given a cheaper price by another accounting firm and their primary focus was saving money. At Thrive, we would never discount our level of service, so we don’t discount our fees. Our purpose is to think bigger, act bigger, and supply you with the level of support you actually need, not the level you think you’re willing to pay for.
This prospect decided to go for the cheaper option, but three months later they reached out to us again and asked for help. Unfortunately, they discovered the false economy of the cheapest option at the other accounting firm. In an attempt to save money, they ended up spending even more than if they had sought out quality from the beginning.
The right team means more money in your accounts
The error most bootstrappers make is focusing entirely on how much money is going in and out of their business today without planning for the future. Six months of free accounting seems great in the present, but what could it cost you down the line?
At Thrive, we’re designed from the bottom up to provide an exceptional accounting service to tech and SAAS companies. After the first six months of working with us you’ll have more money in your account than if you’d gone with a cheap or free trial service. That’s because we go way beyond standard bookkeeping and compliance, and help ensure you’re:
- Tax efficient
- Optimising your decisions for R&D vs Grants
- making use of reliefs, incentives, and credits
- Not worried about financial administrative work
- Equipped with strategic input and in-depth reports so you can work towards you future goals
You’re embarking on a crazy journey. You deserve a dedicated partner who thinks the same way you do. Who can handle the details and supply you with the data you need to become bigger and better every day.
We know you’re busy. You want support, and you want it fast, so record a quick video to tell us about yourself and what you’re most struggling with, and we’ll start planning how we can thrive together.