Outsourcing accounting for startups and established business can be beneficial in many ways:
1. Cost Efficiency
By outsourcing, startups can access professional accounting services for a fraction of the cost, paying only for what they need, rather than additional staff or training existing staff and taking them away from other areas of the business. Your time is also a cost to your business, by freeing yourself up, is allowing you to make money elsewhere.
2. Expert Knowledge
Outsourcing gives businesses access to experienced professionals who specialise in accounting and taxation. These experts stay up to date with the latest regulations and best practices through continued professional development (CPD), reducing the chances of costly mistakes. This doesn’t just apply to making your business tax efficient but also compliant to avoid any fines/penalties. If HMRC were to investigate your financials, it’s a peace of mind to know a chartered accountant has prepared and reviewed this data.
3. Focus on Core Business
New and established businesses primary focus should be on growth, providing high quality service, innovation, and other core areas instead of being bogged down by daily bookkeeping and accounting tasks. Outsourcing frees up time to concentrate on strategic decisions rather than administrative duties.
4. Service flexibility
As startups grow, their accounting needs can become more complex. Outsourcing offers flexibility to scale services such as payroll, VAT returns, bookkeeping as the company expands without needing to take on additional staff and have additional fixed costs. The services provided can be tailored to the business needs and on flexible contract terms.
5. Technology
Outsourced accounting firms often use the latest software and tools to streamline processes, reduce human error, and provide real-time financial insights. Startups can benefit from these technologies without the upfront investment in software or training.
6. Improved compliance and accuracy
Accounting and tax requirements can be complex and vary year on year. Outsourcing to professionals who understand these regulations reduces the risk of non-compliance, fines, and legal issues. It also ensures that accounts and tax submissions are made on time and payment dates are monitored. The benefits of quicker, more accurate reports on your business allows you to make more informed decisions when needed.
Conclusion Outsourcing your accounting can save you time, reduce costs, reduce stress, provide expert advice, and ensure compliance with regulations. It’s particularly beneficial for startups, small businesses, or companies looking to scale without the overhead of additional staff. Most importantly, outsourced accounting allows you to focus on what really matters, growing your business.
If you would like to find out more about outsourcing your accounting or would like to take advantage of our free, no-obligation accounting audit then please feel free to get in touch and our accounting specialist Elliott will get back to you.
