Are there any benefits of outsourcing your accounting needs ?
To hire an in-house accounting team or to outsource your accounting needs ? This is a valid question that many business owners struggle with.
What does it really mean to outsource your accounting ? Well, to “outsource” a role means to have it performed by an external supplier rather than by one of your employees (or, indeed, by yourself…). It simply means that you have a contract in place with an accounting practice paying them to manage your accounts for you rather than employ an accountant or several accountants on your payroll to the same, or you can try to do the accounting yourself.
Some businesses go a step further and opt for offshoring – using an accountant or firm based overseas. This can save on cost, but the trade-off against the benefits and high level of quality of a more local service may ultimately make offshoring not be worth it.
We strongly advice against trying to do the accounting by yourself because it would not only steal a huge amount of time from, you keeping you from working in your business, but it would open the door for so many accounting errors that would ultimately not only cost you a lot of time to fix, but also a lot of money. Afterall, you did not start your business to do the accounts yourself.
But with respect to the other options, namely to hire more staff or to outsource to an accounting firm, it may be a matter of personal choice. However, here are some strong reasons why outsourcing to an accounting practice may work better for you both in the short and in the long run.
Outsourcing your accounting needs is cost-efficient
Bear in mind that hiring an accountant may be expensive because qualified staff like accountants are expensive to hire. Consider also not only the costs to pay employees’ salaries on an hourly or monthly wage, but also the costs for recruiting, onboarding, employee benefits as well as insurance. These issues can quickly increase operating costs, making an in-house accounting team more trouble than it is worth.
And the cost of turnover is substantial when someone leaves your organization. Sometimes you need to pay a recruiter fee, and it may take longer than usual to find the best candidate. Then you want to train them. If they are not the right person, you will need to start over again, which can be an unnecessary headache.
By outsourcing your accounting needs, you save money on paying the salaries, taxes, office supplies and benefits for the full-time or part-time accounting employee or employees. Therefore by outsourcing, you only pay for what you need, namely the service itself. There is no loss in productivity costs that come along with hiring full-time employees.
Outsourcing your accounting needs saves you time
As your business grows, you will find yourself spending more time managing your money and less time scaling the business. Therefore, outsourcing administrative tasks like bookkeeping and accounting help you to focus your time, energy and resources on working the business which you love and know how to do. By assigning the accounting work to trained professionals, you ensure for yourself the time and energy to concentrate on growing your business sustainably.
Outsourcing your accounting needs means higher quality of service for you
Think about it: an accountant employed by you can have so much expertise, but an accounting running their own practice has the advantage of acquiring knowledge and expertise not from just one long-term client like you, but from many diverse long-time clients, thus his or her level of expertise and knowledge expand exponentially. Also, outsourced accounting firms have to improve their skills and qualifications continuously to stay competitive in the market.
This is why outsourcing your accounting needs offers you the possibility to work with a professional who has a higher level of expertise.
Outsourcing your accounting needs gives you access to expert advice
A good accountant will always provide advice on how to make your accounting more efficient. Whether it is about taxation, accounting software or even providing financial advice, an outsourced accountant is in a much better position to offer you the exact advice you need because he or she is part of a larger network of professionals from other fields of expertise with whom he or she collaborates for the benefit of their clients.
Outsourcing your accounting needs ensures you ongoing support
Outsourcing your accounting processes will also allow you to avoid turnover problems and staff time off. For your business, each team member is vital to the success of the company. When a team member is sick or on vacation, or in the worst-case scenario, they leave your business, there is a lot of stress and anxiety arising from trying to replace them so that the work will not lag behind. Of course, when you outsource your accounting needs to an accounting practice, you never have to worry about any of that. Outsourcing your accounting takes those responsibilities away from you so that you can focus what really matters to you, the business you have been building with love and dedication.
There are so many benefits of outsourcing your accounting needs.
How can LAS Accounting help ?
LAS Accounting Ltd can help you with each and every one of your accounting needs, saving you time and money to focus on doing what you do best – running and growing your business. We can also help you understand your business finances, monitor your cash balances, plan for future tax liabilities and pinpoint trends to help support important business decisions.
Now might be the ideal time to engage the services of an accountant to do all the work for you and provide you with all the accounting advice you need.
Don’t hesitate to get in touch for any further enquiries at: email@example.com