Small business owners and their employees find themselves in the difficult role of jack of all trades because they try to cover all the business roles in order to save money. While this is shortsighted in the longer term, it is understandable at the beginning when the business is just aiming to turn a profit and stay in business.
At what point should a business start to outsource its accounting tasks? And why shouldn’t it keep the jobs in-house?
There are many benefits to outsourcing:
Outsourcing accounting services can be more cost-effective than using in-house staff since the trained accountants have the necessary knowledge, training and software to undertake the tasks faster and more accurately. In-house staff can also be surprisingly costly – wages, employer National Insurance and pension contributions and maternity or sick pay.
Outsourcing allows small businesses to access the expertise of experienced and qualified professionals. These specialists have wider knowledge and can make suggestions for further process or tax saving improvements to the business. Using outsourced accounting services can help small businesses improve their financial processes and systems, leading to greater efficiency and accuracy. In addition, these professionals will share their network of professional contacts such as solicitors who are experienced within your sector.
By outsourcing accounting tasks, small business owners can free up time, allowing them to focus on their key strengths of running their business.
Tax is complicated, and by outsourcing accounting services, the business can ensure that they stay compliant with tax laws and regulations which are subject to regular changes.
Outsourcing accounting services allows small businesses to scale their accounting needs as their business grows, without the need to hire additional staff. Hiring staff is time-consuming and costly and brings its own risks.
It may be tempting to outsource to a small accounting company or a self-employed bookkeeper, but it’s worth planning ahead and considering how many processes you are likely to outsource in the short to medium term. A larger accountancy firm should be able to offer you a range of services under one roof, making it easier for you to manage.
Examples of accountancy services which clients of all sizes outsource to us include:
- Company structure and secretarial
- Business start-up and ongoing advice
- MTD (Making Tax Digital) and cloud accounting
- Tax planning
- Financial planning
- Employee benefits schemes
To see how we can help you concentrate on your core-business activities, please get in touch.