Outsourcing, in general, has many benefits and is fast becoming the preferred alternative to taking on permanent staff. Most businesses start out as a one-man band, but for those that are successful, juggling the numerous tasks required for the day-to-day operations soon becomes overwhelming. Many people struggle with accounting, either because of a dislike or difficulty with numbers, so it gets put off and put off until a small regular job has become a mammoth task and you’ve no idea where you stand financially. Outsourcing your bookkeeping is a great place to start.
It’s often much more affordable than you think and can take a huge weight off. The benefits are numerous and include:
Free up valuable time
Time is our most precious commodity, so why spend it slogging over jobs you hate? Doing your own bookkeeping can stretch beyond just keeping accounts. Because, to do it effectively, you’ll need to be up-to-date with the latest rules and regulations, eating up hours that could be spent with family or enjoying a social life. Letting a skilled professional take over allows you to spend your time on more valuable tasks, like growing your business or, dare we say it…taking some time off!
The rate for a bookkeeper is less than that of an accountant, so having a clean and tidy set of accounts to pass on at the end of the year will reduce their final bill. Suppose you have an existing member of staff do the accounts. Are they skilled enough to do it correctly if it isn’t their primary role? You could end up having to put them through regular training or risk costly mistakes. You might decide to employ a dedicated on-staff bookkeeper. However, they’d still need ongoing training, plus sick pay, holiday pay, benefits etc, meaning this becomes an expensive choice. Or, you could just outsource to a skilled team, where you get multiple heads and skills for the price of one and only pay for hours physically spent on your accounts. Seems like a no brainer.
Always Legally Compliant
When it comes to business accounts, the risk of money laundering and tax fraud means business accounts can be a complex area to navigate correctly and remain compliant. The beauty of using a dedicated bookkeeping service is that they will be responsible for keeping themselves up-to-date with all the latest rules and regulations. So, you can rest assured that your accounts are in safe hands and fully compliant, and because they will also be responsible for their mistakes, you can be sure they will be extra vigilant, saving you more time and money.
Accurate Tax Forecasts
Nobody likes a bill, but a big surprise one is even worse. Keeping on top of your accounts means you’ll always know what your tax liability is likely to be, allowing you to always be putting enough money aside and avoid any nasty surprises.
Real-Time Account Information
Having someone else take care of the books means it doesn’t get put off, so you always know where the business is financially. This puts you in a strong position as keeping track of current expenses and knowing what resources are available means you can make more informed decisions about what to spend and when. It also allows you to respond quickly to market trends and changes.
Easier Borrowing & Investment
Substantial growth can often require capital, and the main thing any lender or investor will want to look at is the bottom line. They want to see clearly what the company’s financials look like, so a clean, tidy and current set of accounts can make a huge difference in winning what could prove to be the necessary cash injection that saves or propels your business.
Less Chance of Fraud
No employer wants to think their staff may be capable of fraud, but unfortunately, it happens. Outsourcing the bookkeeping reduces this risk as no staff members have access to the accounts and, therefore, no opportunity to fiddle anything. So you have complete peace of mind that everything is in order.
Most businesses strive for growth, but this isn’t possible if you’re trying to do everything yourself or keep increasing your team to cover the growing task list. Taking on more staff often isn’t a sustainable model and can lead to increased revenue and stress, but not profits. Finding ways to scale profitably is vital, and outsourcing can be key.
As you can see, the benefits are numerous and far-reaching for any size business. For example, you may be a relatively new business that needs to start outsourcing. You might be well established but realise the need to reduce workload or neaten up the books. With the government’s Make Tax Digital coming into effect for all businesses from 2023, now is a great time to beat the
rush and get everything in place before the stampede!