Bookkeeping – it often becomes a task too complex and time-consuming to handle oneself.
There are two primary options for handling bookkeeping duties (other than doing it yourself): hire an in-house bookkeeper or outsource to external bookkeepers.
2023 stats suggest that some 48% of companies in the UK outsource at least some tasks, typically to save time and money and swerve employment headaches.
For many businesses, outsourcing bookkeeping services is an excellent way to cut costs while accessing professional advice.
Why outsource bookkeeping services?
Gaining access to expertise
Firstly, outsourcing bookkeeping services brings you into contact with professionals who are experts in the field.
This advantage can’t be overstated. Professional bookkeepers have extensive knowledge about ever-changing financial regulations and are adept at applying their expertise to your accounts to identify potential avenues of improvement.
Having professional bookkeeping skills at your fingertips ensures that accounts are accurate, tax-efficient and compliant.
Here are the advantages of accessing bookkeeping expertise:
- Continuous updates about changing financial regulations.
- Suggesting improvements to take advantage of tax relief or other strategies for tax efficiency.
- Keeping accurate and compliant books in line with HMRC’s requirements.
Time is a precious commodity in the business world. With numerous responsibilities vying for attention, bookkeeping can drain your time, especially if it’s not your primary area of expertise.
Outsourcing bookkeeping services can alleviate this strain. You delegate the time-consuming task of managing financial records to an external expert, freeing you up to focus on other essential areas of your business.
This can be particularly beneficial for small businesses and startups where resources are limited and the business owner is required to play multiple roles. Passing bookkeeping duties on to key team members can produce its own problems.
Outsourcing bookkeeping means:
- More time for focusing on core areas of your business.
- Reducing the stress of managing books alongside other business activities.
- Alleviation of administrative strain among team members.
On the surface, outsourcing might seem like an added expense.
However, when you consider the associated costs of hiring an in-house bookkeeper – salary, benefits, training, recruitment costs, and office space – the cost-effectiveness of outsourcing becomes evident.
In essence, when you outsource, you only pay for the services you need, be it a few hours a month or a few days a week. This can significantly reduce your business overheads and help you manage your resources more efficiently.
Here’s how outsourcing cuts costs:
- Avoiding the costs of in-house hiring: salary, benefits, training, recruitment costs, office space, etc.
- Pay only for the needed services, reducing overheads and improving resource management.
- Flexibility in choosing the required services based on your budget.
Outsourced bookkeeping services are easily scaled to match your business needs.
As your business grows, your bookkeeping requirements will increase – professional bookkeeping services can scale with you.
With an outsourced service, you can easily adjust the level of service needed based on your current business situation.
In contrast, once your in-house bookkeeper is at capacity, you’ll have little option but to hire another.
Here’s why outsourcing is scalable:
- No need for additional hiring or training with increased bookkeeping requirements.
- Ability to scale services up or down based on growth or changes in your business.
- Costs scale up depending on requirements rather than personnel.
Focus on core business functions
As essential as bookkeeping is, it’s not a core business function for most businesses.
Every hour spent on maintaining books and financial records is an hour not spent on your business’s primary value-creating activities.
Outsourcing allows you to concentrate on what you do best – crafting unique products, delivering excellent service, or innovating in your industry.
Here’s why outsourcing unlocks time to spend on core business functions:
- Frees up time to concentrate on primary value-creating activities: product development, service delivery, and industry innovation.
- Shifts attention from administrative tasks to growth-oriented business functions.
- Enhances productivity and efficiency by focusing on core business aspects.
Access to advanced technology
Outsourcing firms are typically equipped with the latest accounting technology and software. These sophisticated tools can deliver efficient, accurate, and timely financial information.
You’ll likely be able to log in to their platforms to monitor your finances. By paying for outsourced bookkeeping, you negate the costs of investing in cutting-edge software yourself.
Here’s how access to advanced technology helps:
- Benefit from the latest accounting technology and software used by outsourcing firms.
- Receive efficient, accurate, and timely financial information without substantial investment.
- Stay up-to-date with technological advances in accounting without the responsibility.
Get support from a bookkeeping expert
Considering all the factors we’ve discussed, outsourcing bookkeeping services is a strategic decision that could yield significant benefits for your business.
In essence, outsourcing is more than just an administrative decision – it’s an investment in your business.
As you navigate the complexities of running a business, remember that you don’t have to do it alone.
Outsourcing bookkeeping services could be the catalyst that propels your business to greater efficiency, financial health, and, ultimately, success.
Get in touch to find out how we can help.