Outsourcing accounting is when you pay an external accountant or accounting firm to manage your accounts for you, rather than employ an accountant on your own payroll or do the accounts yourself.
Advantages of Outsourcing My Accounting
There is a lot you can gain from outsourcing your accounting function:
- Saving time. Usually the biggest appeal of outsourcing. Handing the job to another person or company frees up your time to invest in growing your business.
- Saving costs. It is often cheaper to outsource all or part of your accounting function than to have a full in-house department.
- Access to experts. Outsourcing to experts means you will get a more efficient service. They will bring a wealth of knowledge and practical experience that adds significant value.
- Improves efficiency within the business. Outsourcing your accounting can make your business more efficient and productive. They will also be up-to-date with the latest standards and technologies.
Businesses of all sizes outsource their accounting and bookkeeping for different reasons. It is very popular among smaller businesses who have a lot to gain from cost and time efficiencies and accounting know-how.
Whether you would like to outsource all or some of your accounting function is completely up to you. We can help you with your VAT returns, year-end accounts as well as your general accounting.
How to outsource your accounting
If the idea of outsourcing your accounting sounds good to you, here’s how to get started:
- Decide what and how much of your accounting you would like to outsource, whether it’s the full function or just one aspect.
- Research accounting companies or accountants suited to your company type, size and needs.
- Gather information and quotes from all the suppliers you like. Always read online reviews to get a sense of their reputation, and don’t be shy to ask about their qualifications.
- If possible, meet prospects in person – whoever you go with is likely to become a long-term partner, so you will want a good connection.
- Once you have selected your supplier, take careful time to compile or review the contract. Ensure the terms and fees work for you, and that you are aware of all related charges.
- When you have chosen your accounting firm, you must start providing them with all the information you need. Documents they will need include bank statements, bills, invoices, receipts, credit notes, purchase orders and your previous years’ accounts.
- Your chosen accounting firm, will then work on managing and preparing your accounts. They’ll submit all the relevant documents to HMRC and can also deal directly with clients for you.
If you would like to speak to us about outsourcing your accounting, then please get in touch.