Have you thought of outsourcing accounting and bookkeeping services? If you haven’t considered it already, you could be missing out on one of the best ways to give your business a boost.
From providing mental-health services for employees to improving revenue by working with industry experts, there are plenty of viable functions for outsourcing in an increasingly diverse business sphere. Read on to find out more about how this intelligent tactic could benefit your corporate model and help you keep up with competitors.
What is outsourcing?
To ‘outsource’ a role essentially means to have it undertaken by an external service provider, individual or supplier, rather than by one of your staff or by yourself. When you use outsourced accounting services, you’ll pay either an external accountant or firm to handle your accounts for you.
It’s easy to get outsourcing confused with shared services. While the two are very similar and often involve clearly defined service, structure and pricing agreements, the main difference is that shared services organisation won’t sign any legal contracts between themselves and their customers.
Where is outsourcing used?
Some of the most frequently performed functions by outsourced services include IT services, finance, payroll services and customer services. Accounting and payroll continue to be some of the most sought-after areas of work for outsourced staff. There are various reasons for this, but up to 65% of small- and medium-sized businesses outsource accounting simply because they don’t have qualified staff to do the job.
What are the benefits of outsourcing accounting?
1. Reduced costs
Hiring is expensive – outsourcing crucial services like accounting means that your business will save on other areas including National Insurance, pension contributions, and training.
2. Improved efficiency
If you outsource a larger team, you’ll be working alongside companies with the latest technologies and standards. Furthermore, operational efficiency will also be improved – since you won’t have to worry about annual leave or sick pay.
3. Reduced financial risks
Outsourcing the right people for a specific service means you’ll be guaranteed quality, reliable results. Outsourcing massively reduces the risks of making costly mathematical or financial mistakes, which could even affect the reputation of your company.
4. Immediate access to experts
Accounting companies excel in one area: accounting! Specialists will be able to provide a much more professional, efficient service than someone who might’ve taken on a new role in your business.
In summary, if you work alongside experienced, qualified accountants, your business will feel the benefits immediately.