Patrycja Binieda
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Outsourcing can be the next step in your business journey. It can propel the growth of your business and optimise your budget, time, resources, and profits.
Over 70% of companies already outsource some of their tasks. But why?
Outsourcing is when a business hires a third-party company or specialist to complete various functions that may support their processes. Accounting outsourcing is when the third party will manage aspects of accounts and financial management that may otherwise be hard to manage in-house. This includes but is not limited to, bookkeeping, payroll, tax, and VAT jobs. By outsourcing these tasks, it allows the business to focus on other priorities such as boosting business growth.
In the modern day, the advancement of technology allows businesses to make outsourcing the norm. Recent studies by YouGov state that over 70% of businesses outsource to third parties. 67% of that is for accounting or other finance services.
82%
of small businesses fail due to poor cash flow management
239
employers failed to pay National Minimum Wage to 22,400
UK workers by a total of £1.44m in 2018
20%
of businesses fail in their first year
60%
will go bust within their first three years -with an accountant by your side,
you are far more likely to be a part of the 40% of new businesses that
survive the 3-year mark
By outsourcing your financial and accounting jobs to a competent accountancy practice, you will receive access to expert knowledge and skills. Accounting companies hire qualified professionals who are dedicated to their work. They will have expertise in the field you are looking to outsource, for example, payroll, tax preparation, and VAT functions. 51% of businesses have subsequently had to hire a qualified accountant to correct the mistakes of a previous, unqualified accountant’s work. Therefore, when tasks are outsourced, it reduces the risk of something going wrong.
Saving money, time, and resources
Hiring and training an in-house accountant can be pricey. This, alongside the cost of their salary, holidays and recruitment makes an in-house accountant more expensive than outsourcing. Not only will you get a more affordable accountant, but you will save time and resources that can be used on other things such as promoting the growth of your business.
Business Improvement
By outsourcing certain tasks, it can increase your profitability and business strategy. Knowing that your finances are in the hands of an expert means there is minimal room for mistakes. Furthermore, you will receive in-depth insights into your finances and strategies that you may have not had before. This can ensure profit optimisation. A lot of outsourcing services also offer business advisory services which can also support your operational productivity.
When you outsource your financial jobs to a third party, compliance is part of the package. No more worrying about keeping up with ever-changing legislations and PAYE responsibilities, more focus on the less tedious stuff.
Say goodbye to papers and spreadsheets, say hello to new technology. As part of your experience, outsourcing companies will include great software. This allows a more professional experience for you and your employees.
Sharing sensitive and confidential information about your staff with a new third party can be scary but making sure your provider is GDPR compliant is key to ensuring you’re covered.
Letting team members go
If you already have team members who handle your finances, you may have to let them go if that is their primary role. Even though it is good for profits, it can be a hard decision to make.
Loss of control
You will lose control over the tedious task of accounting and finances so you can sit back and relax while the third party does all the work for you.
It's challenging to provide an exact number due to the vast and evolving nature of laws, legislations, and regulations related to accounting and finances across different jurisdictions worldwide. However, it's safe to say that there are thousands of laws and regulations collectively impacting accounting and finance.
It is almost impossible for you and your staff to keep up with all these regulations while still optimising the success of your business.
Outsourcing to a third-party accounting service, takes the worries of staying compliant off your mind, allowing you to focus on other business processes.
Not only that but by hiring a third-party company to handle your accounts and auditing tasks, you reduce the risk of human error. Companies using accounting services reduce their manual data entry errors by 90%.
If you want to expand your business, all the paperwork and spreadsheets can become a hassle to get organised. Outsourcing to online software, ensures that all your employee payrolls and finance information are stored in one, compact and organised space. It's just another way outsourcing can support business growth.
Although letting people go is hard, you can also replace your finance team with people who can optimise your business strategy. With outsourcing, you either need less staff (saving you money) or you can reallocate your resources to different sections of your business (promoting profits).
1. What do you want to outsource?
Figure out which parts of your accounting processes you want to outsource. You can choose specific parts or even the whole process.
2. What is available?
Do your research. Search different providers, services, packages etc. Make sure to check their reviews and check that they are GDPR compliant. Narrow down your options.
3. Who is your best option?
Choose a trusted provider. After checking reviews, prices, packages and regulations, choose a provider and service you would like to sign up for.
4. Contact
Get in contact with the chosen provider via email or phone number, or choose a way to get started on their web page, and share any relevant information they require.
5. Thrive
Let them handle the numbers while you focus on your business growth.
Outsourcing is great and with Pulse it can be even better. We pride ourselves in our client satisfaction. We not only want to provide you with excellent services and efficiency but we want to help your business thrive.
When getting started with Pulse we have so much to offer. Our team of knowledgeable experts can be your trusted advisor and handle the numbers for you. From accounting, invoicing and payroll to business advisory, we have the right service for you.
So no matter your needs, we are here to help. We have worked with businesses of all shapes and sizes and with years of experience behind us we can guarantee you a smooth outsourcing process.
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