As the owner of a professional services firm, saying you’re “busy” would be the understatement of the year. It feels like you’re spinning more plates than you can count, and the financial admin often falls to the bottom of your to-do list.
You want the time to look at your business in detail, but you simply don’t have enough hours around the VAT returns, tax filing and payroll. Outsourcing your accounting could be the answer. Let’s look at the benefits of outsourcing your business accounting.
What does it mean to outsource my accounting?
Outsourcing is the hiring of a third party to take care of your business’s finance function. They can take care of as much or as little of your accounting as you need, whether you want to dip your toe in or take the full plunge.
It could cover:
- Bookkeeping
- Preparing VAT returns
- Payroll
- Providing regular management accounts
- High-level financial and strategic advice
If your business already has an internal finance person, you may want to consider outsourcing if your company grows to the point they don’t have the capacity to keep up. Perhaps they’re great at transaction processing, but they don’t have the skills to give you the high-level strategic advice you need.
Alternatively, it may be you’ve not got enough accounting work to justify hiring an extra person. Outsourcing can give you peace of mind your financial records are clean as a whistle, saving you the headache of dealing with them yourself.
Outsourcing takes an enormous weight off your shoulders.
Think how much of your headspace is taken up worrying about your business finances. Sleepless nights, fretting whether you’ve ticked every box for the taxman, making sure your bookkeeping is spotless. Putting your accounting in the hands of an expert will free your mind of that worry, knowing there’s a structured plan in place.
Expert support on your numbers will make for better reporting.
Big business decisions will be far better informed when you’re armed with the most accurate information about the financial health of your company.
The core job of the outsourced accountant is to provide you with better financial information. No matter how well you understand your numbers, you’re also juggling the day-to-day running of your business. You’ll be able to see the path to your goals with crystal-clear clarity, which just isn’t possible when trying to do it all yourself.
Top-notch accounting support goes beyond the numbers.
Taking care of the financial admin is only a small facet of what outsourcing will provide to your business. An outside perspective will be able to offer high-level financial advice and strategic support. For example, you might not have anyone in your team who can help with forecasting and budgeting, but an outsourced accountant lives and breathes this as their job.
They’ll also focus on improving your business processes and introducing technology to make your business run more efficiently. Their wealth of knowledge and expertise across different businesses will be applied to yours, helping you to avoid repeating mistakes others have already made. Think of it as equipping your business with the strongest possible armour.
Outsourcing might cost more than your current setup, but that’s a good thing.
Your professional services business is all about providing value to consumers, and the cost of outsourced accounting is a reflection of the value they’re giving your firm. They have years of expertise and a team of expert finance staff, giving you access to a higher skill level.
Of course, you may be able to save costs. That will depend on your individual circumstances, but be prepared to pay more for expertise (which amounts to a fraction of the cost of employing this same skillset in-house).
The benefits that come with outsourcing are exciting, but the process needs to be planned carefully.
Set yourself up in the best way to reap the rewards. It’s a gradual process, not a one-and-done contract signing.
Be aware the transition to outsourcing is likely to generate some additional work for you in the short term to lay the groundwork for long-run success. Think of it like bringing in an internal finance person: you’d need to spend time explaining your business, how everything works and what you want to achieve.
Consider:
- How extensive do you want the outsourcing to be?
- What type and number of services do you want taken care of?
- What do you want to get out of outsourcing?
- What benefits do you want?
- How will you measure these benefits?
- Where do you want the outsourced accounting to be based?
- How will this correlate to cost? A local accountant is likely to be more expensive.
- How will you work with them?
- What information do you need to give them?
- What will the information flow look like?
- Will you need to inform your team?
- Will any team members be directly affected by your decision to outsource?
- Will you need their support during the transition period?
Take time speaking to potential outsourcers, making sure you feel comfortable working with them. This relationship will be core to your business success so it’s important their values align with your own. Don’t be afraid to ask them to highlight any difficult areas; having an open, honest dialogue from the start will pave the way for a trusted partnership.
Once you’ve chosen your outsourcer, agree on a handover date and make sure both sides are clear on responsibilities so nothing gets lost or duplicated.
It’s time to set your business up for long-term success.
You deserve experts in your corner to help you navigate the challenges of running your business. The team at One Accounting provides outsourced accounting for professional service firms, taking care of your finance function and acting as the sounding board you can turn to for expert advice.
Fill out our enquiry form and let’s start the conversation about what outsourced accounting could look like for your business.
