Why you should outsource your accounts function
Whether you are a b2c business operating in online retail or a b2b business providing a professional service, as a business owner you have to find a way to manage the books. That could mean employing an in house accountant or even a whole accounting department, depending on the size of your business. But managing your accounts yourself is complicated and time consuming. The costs of recruiting a qualified accounts person, or team, are high, and the time required to manage your accounts effectively means taking your eye off other areas of the business, like working on how to grow it further.
Many small business owners are nervous about outsourcing. They worry about yet another cost to add to the list and the fear that their precious business information is in somebody else’s hands. These worries, though understandable, needn’t be a concern. There are so many advantages of outsourcing your accounts function and here are just a few to try to ease any misgivings that you may have.
A better return on investment
The costs of recruiting an accounts person or team are sky high. Before they even get to work you have to think about the costs of advertising your position or hiring an expensive recruitment agency to do the job for you, not to mention the hours you’ll spend pouring over CVs and conducting interviews. Then once you have found the correct candidate, you’ve got countless other costs to look forward to including salaries, benefits, insurance, payroll taxes, paid time off as well as work space, furniture, computers, software. The list is endless!
The financial savings of outsourcing are significant. Outsourcing allows you to balance your accounting requirements to your business needs and ONLY pay for the actual accounting, nothing else. Plus, it’s tax deductible.
Make better use of your time
The time it takes to manage your accounts function on a weekly basis can be put to so much better use. No more weekly update meetings or valuable time lost from your diary spent managing office operations. That’s what your accounting provider will do. You can spend the time instead on activities that are vital to your business objectives like working on growth strategies or building relationships.
Have your accounts managed by a TEAM of experts
You may be able to afford a single accounts person in your business, but using that investment on a professional accounting firm gives you access to a whole team of experts. An accounting firm will have someone within the practice who can help you with every part of your financial management from making sure you are tax compliant to helping you develop strategies to grow your business. It’s their job to stay on top of changes to tax rules or legislation so you don’t have to. They specialise in what they do and have to continually develop their skills to compete, which means you can trust that the service you are going to receive will be top notch.
Lessen the risk of fraudulent activity
SMEs are at great risk of being targeted by fraudsters. Most small companies lack the resources in house to identify abnormal activity and cannot afford to hire an experienced financial controller or Chief Commercial Officer to scour their accounts for any sign of fraud within transactional or billing data. By outsourcing your accounts function you will have direct access to specialists who can identify fraud signs and put in place proper fraud protection controls and procedures.
Keep accounting departments separate from each other
With the best will in the world, most SMEs find it impossible to give their accounting the proper attention it requires. Whether you are looking after the accounts yourself, or have a full time employee to do it for you, there is just too much to do. Are you 100% sure your business is financially on track? Are you confident you have taken advantage of every loop hole or exemption so you can make the most of your money? An accountancy firm has the man power to provide specialists for each accounting responsibility such as accounts payable, payroll, revenue tracking and tax obligations. You’ll have access to a team of people who will be checking each other’s work to ensure they are making the most of your money.
Scale your service requirements in line with business growth
One of the biggest benefits of outsourcing is scalability. As your business grows you can simply add further functions to your service provider. They have a team in place to deliver your requirements and will draw on extra resources to meet your deadlines if required. You won’t need to worry about recruiting more staff or having to make redundancies should the business take a down turn. What’s more, they are on hand to help you think about your growth strategy, help you earn more money, and most importantly, help you KEEP more money by finding places to cut down spending or taking advantage of tax loop holes or exemptions.