If you’re looking for new ways to streamline your company’s day-to-day operations and increase its bottom line, you need to ensure that your accounts are in order. Deciding on using an in-house or outsourced accountant can be tough. There are numerous benefits to using the latter, let’s take a detailed look at some of these.
More time (and money) to build your business
Offloading your financial accounts and bookkeeping to a professional company can save you time and money. Think about all those hours you’ve already spent just trying to make your books balance. This time could have been better spent plotting your next smart business move.
Then there’s also the risk of making costly mistakes, which is especially high when you’re unsure of what you’re doing and juggling your accounting duties with a host of other responsibilities. You could end up with dates and figures that are incorrectly entered, reported or simply missed altogether. By removing your business’s accounting duties from your plate, it frees up valuable time that you can use to plough back into the growth and success of your business. You’ll also have peace of mind knowing that your accounts are in safe hands and correctly captured.
What’s more, when you outsource, you only pay for what you need and when you need it. This means that you wouldn’t have to pay for the overhead, vacation, sick leaves, payroll taxes, training and other expenses of the accounting department.
Access to experts and better technology
One of the benefits of outsourcing your accounting is that it gives you access to accounting experts who are up to date with the latest technology. Your business may not be able to afford the latest accounting tools, but your outsourced accountant can. Smart accounting companies invest in the latest software so that they can continue to offer the best service to their clients. So, you gain all the benefits provided by top-of-the-line accounting services, without having to invest in or maintain them yourself.
What’s more, enlisting the help of seasoned professionals will ensure that your business stays compliant and that you remain up-to-date with current tax laws or industry changes, such as Making Tax Digital (MTD). These accountants are trained to employ best practices in accounting standards and stay informed on all the most important finance details, which means you don’t have to.
Get help with MTD
HMRC is paving the way for more efficient record-keeping with the introduction of MTD. This will mean that physical accounting records will no longer be compliant. It will be mandatory to use software to keep your business’s accounting records and file accounts and returns at HMRC.
The roll out was originally intended for April 2018, however, the government has amended the dates to give businesses more time to prepare for the shift. The revised timeline for MTD is:
- From April 2019: All VAT-registered businesses with a turnover above the VAT threshold will need to report on VAT digitally when filing their VAT returns
- From April 2020: All businesses will need to report on Corporation Tax, as well as VAT, digitally
By outsourcing your accounting, you won’t have to worry about your accounting compliance for MTD. You’ll be able to rest easy in the knowledge that your accounting is done in the correct digital format, meets HMRC’s requirements and is completed on time.
Scale for the future
Perhaps your business currently needs a monthly service to reconcile and close your books, and later down the road you may find that you need to change that to a more comprehensive daily service. Outsourcing gives your business the flexibility to expand or cut back on your service requirements and expenses when and where you see fit. As your business expands, you only need to add more functions to your service.
You’ll also gain the benefit of always having a team in place to meet your accounting needs. They are also able to draw on extra resources to meet your deadlines, if required.
Receive advice you can trust
The right accounting service should do more than just input data or operate the software. Good accountants can offer advice and insight, particularly when you’re looking to expand your business or seeking investment opportunities.
Having an experienced accounting partner can be a great way to support your decision-making. They may have knowledge of similar scenarios or invaluable information that can help you make the right decision. It’s no good having all your financial data recorded correctly if you’re not able to use it to make better business decisions. With someone to explain exactly what the financial statements mean, you’ll be better equipped to make decisions that will steer your company toward growth.
How to choose the right accounting partner for your business
Now that you have a better understanding of how your business can benefit from outsourcing your accounts department, how do you go about choosing one that’s right for you? Here are a few helpful tips.
Your accountant needs to match your business needs
Consider the size and complexity of your business and whether the accounting company will be able to service your business now and in the future. Do they specialise in only small-sized or only medium-sized businesses, or in both? If you have aspirations of growing your small business, it’s a good idea to use a company that specialises in both as they will have the experience and knowledge to advise and guide you as your company grows.
The right qualifications are important
This goes without saying. However, you also need to ensure that the accountant is registered with an accounting body.
Additional services can be useful too
You may want to consider an accountant that provides other complementary services. This will be a great added value to you as all of your professional matters can be dealt with in one place.
Ideally, you’ll want a comprehensive accounting service that can advise you on the correct structure of your UK company, payroll and ensure you meet your statutory filing obligations. With this kind of partner, you can focus on growing your business while your accountant ensures all your deadlines are met and that your books are all 100% above board at all times.
Whether you’re in need of a bookkeeper to help you balance your books, or a management accountant who can help you make effective business decisions, we offer a variety of accounting services to suit your needs. Get in touch with our accountants on firstname.lastname@example.org or give us a call on +44 (0) 20 7759 7553.
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