Outsourcing your accounting is when you hand the activity over to be performed by an external supplier, rather than by yourself or one of your employees. An accounting firm will manage your accounts for you, which can have many benefits for both small and large businesses.
Advantages of Outsourcing Business Accounting
Time spent managing your accounts could be spent elsewhere, and outsourcing them can free up your time to spend on more productive tasks to invest in growing your business. What’s more, handing your accounts to someone outside of the business will remove time spent on hiring, training or managing an internal accounting team.
It is often cheaper to outsource all or part of your accounting, rather than having an in-house department. Not only will you save on the costs of hiring, training and managing in-house employees, but you will also save on National Insurance and pension contributions, and you wont need to worry about paying for accounting software.
Accounting companies are specialists in the industry and can provide you with expert advice and an efficient service. They will have a wealth of knowledge and practical experience that adds value and can provide you with insights to help you grow your business further.
In-house accounting departments can be unproductive – you have to take into consideration sick and holiday leave and staff will often get distracted with other tasks. However, outsourcing to a specialist accounting company can focus solely on your accounts, without having to worry about other tasks. What’s more, they will stay up-to-date with the latest software and news, meaning they are able to implement new technology-driven processes to improve services.
Understand Cash Flow
Knowing where your money is sourced from and going will help you to make strategic business decisions in the long term, and a reliable accountant can support with cash flow statements helping you to understand where you’re losing money, and where to invest efforts.
Easy Tax Returns
Keeping track of your accounts makes submitting your tax return and VAT return much easier and your accountant can take care of this for you. They will be able to provide you with the necessary information to prepare your taxes accurately and quickly, relieving you of stress and time.
Business Scale & Adaptability
As your business grows, so does the need for additional accounting support. Your accountant can help with scaling your business and can be as flexible as you need, meaning you can scale your operations both up or down without suffering any profit loss.
Reduce Likelihood of Errors & Risks
When you hire in-house, you have to check their experience and expertise, and have lifetime training to stay up-to-date with the latest technologies and laws. However, outsourcing to specialist accounting companies ensures that they are specialists with years of experience. Having specialist accountants means that you reduce your risk of making financial mistakes.
Outsourcing your accounting with James & Uzzell allows you to get expert advice, giving you insights to help your business to run efficiently. Contact us now for more information on how we can manage your accounts securely and efficiently, allowing you to focus on running your business.