Are you considering outsourcing your accounting and bookkeeping for your business? You may need some convincing before you take the plunge into finding a contractor to take care of all your accounting needs. The good news is that there are several benefits to outsourcing these types of services. The key benefit is that it can save you time and money in the long run thanks to the many services outsourced accountants can provide.
An introduction to outsourcing your accounting and bookkeeping
Outsourcing is when you hire a service provider external to your organisation on a part-time or contract basis, rather than employing them full-time within your company. When you outsource, you, as the client, are not responsible for payroll contributing to other factors like employee pensions or medical schemes. For most companies, outsourcing is a far more economical solution than bringing someone into your organisation as full-time staff.
Outsourcing your accounting and bookkeeping therefore saves organisations a lot of time and money considering reduced hiring costs, however, there are also additional benefits to this, given the increased expertise and professionalism that comes with outsourcing accounting firms. Below are the specific reasons why outsourcing your accounting and bookkeeping can massively benefit your organisation and the best route to finding a firm that suits you.
1. Reduces the number of errors
Businesses can often become overwhelmed when it comes to legal compliance and bookkeeping, especially when being audited or during the busy tax season. When managing your own books, in-house, there may be certain policies that you’re unaware of. That’s where outsourced accountants and bookkeepers are brilliant. It’s their job to understand all the ins and outs of new accounting laws and regulations.
It’s, therefore, the case that outsourcing can help you to minimise the number of errors made on practices like tax returns, and financial reporting, saving you time and possibly hefty penalties.
2. Mitigates time spent on the hiring process and hiring admin
Hiring someone who knows their stuff about accounting but also fits in with the dynamic of your organisation is no small feat. Additionally, there is a lot of administration associated with hiring someone new. You have to review CVs, undergo extensive interview processes, and assess their capabilities before making the commitment to hiring someone.
With outsourced accountants, you don’t have to go through this process, as professionals will have all the necessary certifications and guarantees that let you know they are capable of doing what you need them to. More senior bookkeepers and accountants will also have experience across a variety of industries, meaning they will be able to implement the best practices within your given field, saving you from having to look for someone who meets specific criteria.
3. Saves time and company resources
Although bookkeeping and accounting are very important jobs, not all organisations need someone to do it full-time. Often, jobs like bookkeeping and basic accounting are left to administrative staff if companies want to save money on hiring someone new. However, this can also take time away from the required day-to-day work, sometimes leading to a misallocation of company time and resources.
When you outsource, you ensure that everyone who works for your organisation can focus their time on aspects that will ultimately add more value to the company, rather than worrying about accounting and bookkeeping.
4. Implement accounting expertise and trends
Accountants and bookkeepers understand exactly what to do when reporting a company’s finances, however, they also understand how to operate in such a way that there could be big benefits to your company. For example, accountants know how to file corporate tax claims such as R&D tax claims and corporation expenses, often resulting in massive tax rebates for your organisation.
Often, those who do not practise accounting are unaware of the benefits you can glean from submitting accurate financial reports. That is where outsourced accountants can add great value to other organisations, offering expert insights into how best to manage and report your books. Accountants can also help with budgeting, given their knowledge of certain market and pricing trends in specific sectors.
5. Easily integrate automated systems
There’s no doubt that the introduction of management technology has accelerated the way we all do business. Accounting is no different. Outsourced accounting and bookkeeping specialists will be more familiar with automated systems and accounting software than someone who isn’t a professional. They can, therefore, help to streamline accounting and bookkeeping processes through implementing automated systems. They will also be able to offer advice on how to make bookkeeping processes easier to manage internally while offering an advisory hand when necessary.
6. Assured legal compliance
Accountants need to keep up to date with new laws and regulations, which often change on an annual basis, in line with economic trends like inflation. This means legal and compliance parameters are constantly changing and can be tricky to keep up with if you do not fully understand the world of economics and finance.
An accountant has to keep up to date with all of the latest regulatory and legal changes that could affect your organisation. This is especially relevant for companies that are in the stage of significant growth. With profits on the rise and more time and consideration needing to be paid to fund allocation, an outsourced accountant can offer expertise and helpful advice.
7. Improved management of books
The practice of bookkeeping fundamentally means that each transaction that goes through the company or organisation is accounted for. This often means that each transaction needs to have a receipt of a document that proves what the transaction was and why it took place. For this reason, aspects like staff expense claims, departmental spending, and company income can be tracked and fully accounted for. This is important in the event of a company audit and also becomes necessary when filing tax claims.
When you outsource a bookkeeper, they will help you implement the necessary systems for keeping track of company spending and income, developing and implementing filing systems that will make the process a lot easier.
8. Smoother tax filing
Filing for tax is necessary at least once a year, as it lets the local governing bodies know that you are compliant with tax laws. The process can, however, take up a lot of time, and it’s often left to the last minute, causing stress and taking up time during busy financial seasons. When you keep on top of your accounting and bookkeeping, filing taxes becomes a lot smoother, and it’s easier to find areas where you can claim back, saving you money.
A professional accountant can help ensure that your books and accounts remain organised and within budget, helping to monitor the amount of tax you owe and what you can claim back. Outsourcing will, therefore, ultimately reduce the time you spend on tax filing and save resources.
Finding the right accountants and bookkeepers for you
When it comes to looking for bookkeepers and accountants to outsource, there are a few things you need to consider before making your final decision. Firstly, you need to be sure that the firm you decide to contract is trustworthy, and has your and your company’s best interest at heart.
Before you outsource, you have every right to vet the firm beforehand and can ask them for certification and questions about their previous experience. You may also want to ask for references of work for previous clients and request testimonials and recommendations.
How Reed & Co. Accounting can help you
With many years of experience in accounting, tax, and payroll services, Reed & Co. is fully equipped to help you with your accounting needs. Specialising in businesses in the Bristol area, we make it our duty to ensure that all your accounting and bookkeeping needs are met and remain in line with the relevant laws and regulations.
If you require help and advice with any accounting or bookkeeping queries, or looking for professionals to outsource, don’t hesitate to give us a call or reach out via email. We look forward to hearing from you soon.