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Outsourced Accounting Explained: How It Could Work For You

Outsourcing your business's accounts could bring your business several benefits

What is Outsourced Accounting?

Outsourced accounting is the delegation of your financial functions to a third-party provider. The accounting firm you choose takes responsibility for managing your bookkeeping, payroll, tax compliance, and financial reporting. With these tasks outsourced, you become free to focus your efforts on other, more important, business objectives. 

Benefits of Outsourcing Your Accounting

For many business owners, the world of accounting can feel like a maze of spreadsheets. Time spent grappling with invoices can take time away from more productive efforts, forcing you to delay tasks that drive business growth. Outsourced accounting could be the key to saving time and focusing on what matters most to you.  

 

It's not just increased efficiency your business could benefit from, having expert accountants at your disposal could lead to more coherent finances, meaning your business remains on the right side of the complex rules and regulations that come hand in hand with running a business. It's also important to remember that, as your business changes and develops, your approach to your accounting will have to do the same. A flexible outsourcing arrangement allows you to scale your financial services up or down as required, ensuring your business has continuous support as it grows. 

 

One of the other main benefits of outsourcing business accounts, especially for smaller businesses, is money saving. Small businesses often lack the large budget required to hire a professional accountant on a full-time basis, making the task of accounting even more difficult. Outsourcing can eliminate hiring and training expenses and offer significant cost savings as you can benefit from the expertise and guidance of a fully trained accountant without ever having to employ one. 

The Drawbacks of Outsourcing Your Business Accounts

While there are numerous benefits to outsourcing your accountancy, there are a few things you should consider before you commit to doing it.

 

One thing to consider is the loss of control that comes with delegating your finances. You won't have the kind of control of your books that you might be used to, so you should take a lot of time to choose the right accountant for you and your business. Clear communication with the firm you choose will therefore prove important for maintaining confidence and transparency. 

 

Safeguarding your sensitive financial information is paramount. Choose a provider with robust cybersecurity measures and data protection protocols in place.

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  • Brookson Group Ltd
  • Clever Accounts Limited
  • Contrast (Accrue) Accounting limited
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Is Outsourced Accounting for You?

With remote working becoming increasingly popular in the modern world, outsourcing your accountant is now much more available to businesses of all types, an outsourced accounting service is suited to businesses of all types, regardless of size. 

 

A small business that doesn't need or can't afford a full-time accountant, but does still need someone with experience in accounting, would likely benefit from an outsourced accounting service. 

Find an Accountant for Your Business

If you've read the above, and you think your business could benefit from outsourcing your accounting, then you're in the right place. 

 

Just tap below and answer a few questions about your business to get a range of free quotes tailored to your specific business needs.

FAQs

Your Questions Answered

Outsourced accounting is the delegation of your financial functions to a third-party provider. The accounting firm you choose takes responsibility for managing your bookkeeping, payroll, tax compliance, and financial reporting. 

 

With these tasks outsourced, you become free to focus your efforts on other, more important, business objectives. 

Accounting firms can manage several financial processes on behalf of your business, including bookkeeping tasks like data entry, payroll processes like tax filing, and financial reporting operations like cash flow analysis. 

This is the easy bit. We're here to help you find the most suitable accounting firm for your business. 

 

Answer a few questions about your business to get a range of free quotes tailored to your specific business needs today. 

Compare The Best Accountancy Services Now

You could save yourself & your business £1000s

Which service are you most interested in?
 
Complete our short form. It only takes a minute
Our Partners
  • Brookson Group Ltd
  • Clever Accounts Limited
  • Contrast (Accrue) Accounting limited
  • SKS Business Services Limited
  • Unbiased Limited
Our Products
  • Business Accountancy
  • Business Epos Systems
  • Business Telephone Systems
  • Commercial Waste Collection
  • Digital Marketing
  • Fleet Tracking
  • Invoice Finance
  • Merchant Accounts
  • Website Design
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Read more about how to save your business money
The Different Types of Accounting

What is Financial Accounting?The purpose of financial accounting, also known as bookkeeping, is to track, record, and report on financial transactions by generating financial statements. These statements are then used to determine several things, like how your business is doing, how it's likely to do in the future, and how much tax it should be paying.  Financial accounting provides an accurate look at business performance over a specified period and is often provided to outside stakeholders such as investors and financial institutions.The Importance of Good BookkeepingGood bookkeeping isn't just about numbers and taxes; it's the bedrock of a healthy financial life. Imagine your finances as a house - strong, organised bookkeeping lays the foundation, ensuring everything runs smoothly. Bad bookkeeping means your business could stumble upon unexpected tax bills, struggle to make crucial decisions, or lose financial certainty.  Good bookkeeping equips you with the power to make informed choices, plan for the future, and weather any financial storm your business may be forced to encounter. Remember to consider the importance of good bookkeeping; it's the key to building a solid financial future.What Are the Different Types of Accounting?There are several types of financial accounting, each with a different purpose. Business valuation accounting, for example, aims to gain an understanding of how much a business is worth, while tax accounting helps businesses determine how much tax they owe.  Financial accounting ensures transparency and accuracy in reporting your company's financial health. A financial report should paint a clear picture of your business's financial performance from the balance sheet to the income statement. Though most types of financial accounting concern the past performance of your business, it can sometimes be used to make predictions. Management accounting revolves around using financial data to inform strategic decisions within a company; analysing costs, performance, and budgets to help your organisation use its resources most effectively. Similarly, cost accounting delves into the granular details of expenses, analysing the costs associated with the products and services you provide.  

March Newsletter

Bank of England Holds Interest Rate...But Says a Drop Could be ComingMarch saw the base level of interest held at 5.25% - their highest level for 16 years - but the Bank's governor Andrew Bailey told the press that the recent drop in inflation was "very encouraging and good news." Inflation (the rate at which prices rise) has been at record levels over the last few months but dropped to 3.4% in the year leading to March. The drop brought the rate of inflation closer to the Bank's target of 2%.  While there's still a way to go, Mr Bailey told the press that cuts to the base interest rate could come before inflation hits 2%, as long as the Bank is confident inflation is sure to get there. This doesn't mean a drop in interest rates is sure to happen soon, but the Bank is more confident that a drop is possible given the way things are heading. If a drop is coming, it could be as early as May this year, which is the next time the Bank of England meets to discuss a possible drop.HMRC Commits to Keeping its Self-Assessment Helpline OpenHM Revenue and Customs (HMRC) has reversed its decision to close its self-assessment helpline for half of the year. The tax authority recently announced that the phone line, which offers business owners guidance with their taxes, would be closed between April and September every year, with taxpayers directed to alternative online services instead.  But it later went back on the decision and said the phone line would stay open throughout this summer. The reversal of the decision happened quickly; responding to a significant number of taxpayers that were opposed to the change.  As it stands, the phone line remains open for all your tax queries. Red Sea Attacks Continue to Push Costs UpBusinesses across the UK have expressed concerns about facing higher shipping costs and delays due to Houthi attacks in the Red Sea. The delays, which have lasted up to four weeks, were revealed by the business group, British Chambers of Commerce (BCC). The BCC has said that more than a third of the companies it surveyed said they had been affected by delays and the figure rose to more than half among exporters.  Exporters, retailers, wholesalers and manufacturers were more likely than other companies to be affected, leaving these types of customers short of goods to sell and components for production lines.  In a blow to those hoping the economy is bouncing back, the BCC also warned that the delays could contribute to higher prices in the UK economy generally.Recovery Loan Scheme ExtendedAs part of the spring budget, the chancellor announced that the Government's Recovery Loan Scheme will be extended.  The Recovery Loan Scheme supports access to finance for small and medium-sized UK businesses, so they can grow and invest. The loan, which offers up to £2 million per business group, can be used for any business purpose, including working capital or investment. The government guarantees 70% of the finance to the lender but, as the borrower, you are 100% liable for the debt.  You may be eligible for a loan through the Recovery Loan Scheme if your business is trading in the UK, has a turnover of £45 million or less and isn't in difficulty. Find out more about the scheme on the UK Government website. 

Five Benefits of Business Accounting

What Is an Outsourced Accounting Service?They're accounting firms that specialise in providing accounting services to businesses. This means that you don't have to hire an internal accountant as a permanent staff member, or even worse, do it yourself.  Due to this, smaller businesses that are on a tighter budget may find outsourcing their accounting services particularly helpful. Read on to learn everything you need to know about having your accounting tasks outsourced and how it can benefit your business in numerous different ways. Five Benefits of Using External Business Accountants1. Save Time and Improve Efficiency  On average, small business owners spend 10 hours per month on bookkeeping. This is wasted time that could be spent focusing on improving other areas of your business.  2. Save moneyOutsourcing your accounts is far more cost-effective than hiring a full-time member of staff, as you're not paying a salary, sick leave, holiday pay, or any other benefits your business may offer.  3. Avoid HMRC Penalties If you submit your VAT returns via paper without authorisation, HMRC will fine you £400.  This is just one of many baffling fines that you could end up paying if you don't truly understand how to navigate HMRC.  4. Record Keeping It doesn't matter if you're a limited company or a sole trader; you need to keep your financial records for at least six years if you're a limited company and five years if you're a sole trader. Failing to do so could result in a £3000 HMRC fine and being disqualified as a company director.Keeping track of and properly storing these documents can be a time-consuming task that is easily avoidable by using external accountants.  5. Expert Skill SetWith their years of experience, accountants can help with other areas of your business, such as financial strategy and relationship building with banks and solicitors. They will also often have access to specialised accounting software, which will help eliminate any risk of human error.