Benefits of Outsourcing Your Accounting Needs

Running a business or working for yourself is hard work. With so much to consider on a daily basis, tasks can become a bit of a juggling game. It’s no wonder then, that there’s been a growing trend of outsourced accounting services recently. This essentially means you hand over your finances to a third-party, an accounting firm, who will carry out your tax and accountancy services for you. It can include everything from bookkeeping and payroll to accounts receivable and bank reconciliation.

For the average modern business, the benefits of outsourcing accounting are numerous; you ensure smooth running of your finances while getting to focus on other pressing issues. On top of that, it also reduces costs and improves efficiency, frees up time and resources and offers you specialised expertise and technology.

So, with that in mind, here’s how each individual area of accounting outsourcing could benefit you.

1. Cost Savings

You could see great cost savings through outsourcing which means you’ll have more money to spend elsewhere in the business. This is because outsourcing can reduce costs associated with a typical in-house accounting team. For example, you won’t have to set money aside for overhead costs such as hiring and training in-house staff anymore. There’s also savings to be made on office space, equipment, and software licenses in this case too.

2. Access to Expertise

Ever changing laws and regulations can make for one big headache when it comes to finances which is why one of the best things about accounting outsourcing is that you have access to a team of highly skilled professionals. These people will have carried out extensive training and exams so you can rest assured you’re in safe hands with their specialised knowledge. And if there’s one thing you can rely on accountants for, it’s ensuring compliance with tax laws and financial reporting standards. Outsourcing firms stay up to date with the latest accounting regulations and standards so you don’t have to.

The accountancy services you’re after will vary depending on your individual business needs. Generally speaking, some tasks you’ll be looking at handing over are:

• Tax planning – this prevents you from late filing, costly mistakes and penalties. Handing this task over to an accountant means you can gain full insight into how best to minimise costs for your business. Having someone in place to remind you of important deadlines will also prevent late filing and potential penalties.
• Financial analysis – let the experts analyse the data so that you can be presented with the facts. This will mean you’re in the best position to make informed decisions about your business’ finances based on reported transactions and budgets.
• Bank reconciliation – the process of matching up your business’ bank statement with your own books. Better handled by experts to ensure a high level of accuracy and to spot any discrepancies.

3. Improved Efficiency and Accuracy

High up on the list of reasons to outsource accounting is that it can lead to much more efficient accounting processes. One of the biggest factors in this is managing risks associated with financial inaccuracies and non-compliance with regulations, all of which outsourcing can help with. Through use of advanced technology, your accountants will be able to streamline workflows as well as reduce the risk of errors which are more likely to occur when accounts are handled manually. If you want to stay on the right side of HMRC then this is definitely the way forward.

What’s more, you’ll be ensuring that time-consuming tasks, such as payroll processing and bookkeeping, are being managed efficiently. If you find yourself spending a lot of time doing HR and payroll manually, handing it over to trusty accountants could just be your golden ticket. In one fell swoop you’re able to gain back some time, simultaneously ensuring your business is operating compliantly. The time freed up from doing this yourself means you’re able to redirect your attention and expertise elsewhere and focus on the day to day running of your company.

4. Scalability and Flexibility

As business ebbs and flows and you shift to meet your customers’ new interests and priorities, or even if your business simply expands, there should always be room to grow freely. Accountancy firms are well-equipped to deal with these kinds of changes and will adapt with the evolving demands of you and your business. They can also offer invaluable advice to help you make important business decisions.

At the end of the day, outsourcing allows businesses to scale their accounting needs up or down based on their growth and seasonal demands. The lack of long-term commitment allows you the flexibility to adjust the level of service as required. Depending on your business, scalable accounting solutions offer so many benefits from boosting revenue to creating a better customer experience.

5. Focus on Core Business Activities

As already mentioned in this blog, outsourced accounting services can free up time and resources for business owners to focus on strategic growth and core operations, both of which result in positive impacts on productivity and business development. Instead of having your attention split across several different areas, you can streamline efficiency by targeting those in need of a little extra attention. Whether this be customer service or product development, handing over your accounts will permit you to spend that energy elsewhere.

6. Access to Advanced Technology, Confidentiality & Data Security

Outsourcing firms use the latest accounting software and technologies, allowing you to sleep soundly knowing you’re dealing with only the best. For example, have you ever considered the benefits of real-time financial reporting? This advanced technology is designed to gather the most up-to-date information and send it to users as it happens. Real-time financial reporting is incredibly useful for when you’re working under pressure and need to make informed decisions quickly. Being able to assess your overall financial position in such a fast way is something a lot of businesses strive for.

Another tool that helps enhance financial management is a cloud-based solution. Not only does this mean your data is accessible from anywhere and any device, but the robust security measures of these systems are also guaranteed to protect sensitive financial information via methods like encryption and secure data storage. It goes without saying that implementing high security measures for your financial information is a must, and something that outsourcing firms are pros at.

Get In Touch

We hope this blog has made you feel empowered to identify the key areas your business could use improvement in and confident about the numerous benefits outsourcing can bring to the table.  

If you think you could benefit from cost savings, improved efficiency, and enhanced focus on core business activities, we may just be the reliable partner for you! Need more information? Our dedicated team are on hand to assist with any questions you may have. Simply get in touch or check out our accountancy packages to get started.