What is outsourcing?
Quite simply, outsourcing means to have a role in a business performed by an external supplier rather than the owner or a member of their team.
Businesses of all sizes outsource their accounting for different reasons and luckily, there are few positions in a business that are as easily outsourced as the accounts function. In such competitive times, businesses need to focus on growing and developing and leave their accounting to professionals.
Benefits of outsourcing
Regardless of the stage, a business has reached, outsourcing can have many benefits, such as:
Saving time – this is normally the biggest appealing factor! Outsourcing accounting for a smaller business means it frees up more of the business owner’s time, and for larger businesses time can be saved by not having to recruit and train internal staff to undertake these jobs.
Reducing costs – sometimes it is cheaper to outsource than to have an in-house accounts team as there will not be any employee-related costs, e.g., pension, benefits etc. Also, businesses can save on overheads such as office space and supplies.
Up-to-date technology and experience – accounting practices are the experts in their field and can provide a wealth of knowledge and practical experience. They can offer valuable insights into how a business is performing and of course, ensure the business is complying with regulations. Also, investments in the latest accounting software, such as Xero, ensure efficiency and enable the streamlining of processes.
Consistency – when outsourcing, businesses do not need to worry about how holidays and sickness will impact their accounting work. Outsourcing brings relief in the form of continuity of service.
What are the accounting jobs which can be outsourced?
Well, most of them, as it is the same as having your very own in-house accounts department, including:
• Credit control (chasing outstanding invoices)
• Supplier payments
• CIS returns and payments
• Payroll and staff payments
• Project management
• Management Accounts
• Cash flow forecast
• Monthly review and goal-setting meeting
• Process improvements
• Software implementation
For many businesses, the decision to outsource their accounting can be the first step toward making life just that little bit easier, safe in the knowledge that their finances are in good hands, leaving them to focus on what matters.