Is your self assessment tax due soon, or are you facing difficulties with your annual return? These uphills are a few of the most common challenges faced by companies in the UK. Self assessment tax and annual return are the top challenges, and many companies in the UK, small and large, start worrying about these once the tax season comes around the corner. Some companies, especially SMEs, do not have a budget set aside for hiring accountants with the required skills, and the inadequate resource pool doesn’t help any further. If you are one of these companies, have you considered outsourcing your accounting and bookkeeping function to stay clear of these complications? Self assessment tax and annual return outsourcing is not a new concept in the UK market. It helps businesses focus more on their core processes, staying away from tedious manual tasks.
Outsourcing is on a rise in the UK accounting space, with the primary driving reason being cost savings. Not all companies can afford to have a dedicated team for managing internal finances and accounts. Moreover, nothing is better than having a team of experts at your disposal to handle the tax function, resulting in continuous growth for your business. Therefore, outsourcing a long-term business investment. The reasons to outsource accounting and bookkeeping can be many; we have compiled some of the top ones in the below list.
- You can focus more on your core competencies
When you run a business, you need to take care of several processes; accounting is only one of the main aspects. However, if you are an IT guy, you will take time or even face difficulties with self assessment tax and annual tax returns. This will also be time consuming. So it’s better to outsource accounting and bookkeeping to a specialist provider who can do the taxes on your behalf. Self assessment tax and annual return outsourcing will free up more time for you to focus on your core competencies and the other core processes of your business apart from outsourcing.
- You can reduce employee costs
With outsourcing, you can completely eliminate employee costs, including money spent on training, wages and benefits. When you decide to outsource accounting and bookkeeping, you save 30-40% of the costs spent on hiring new employees. With reduced employee costs, you will have more capital on hand to fulfill other business requirements.
- You will face fewer frauds and risks
Employees are your assets, but they could also be your biggest liabilities. Many companies across the UK have reportedly faced employee frauds. According to ActionFraud, UK businesses faced employee frauds amounting to £88 million in losses in 2017-18. Therefore, it is a smart move to outsource accounting and bookkeeping to a specialist provider so avoid losses due to frauds.
- You will shoulder less tax burden
If you don’t know when or how to file your self assessment tax or prepare your annual return, your business can face severe risks. There are tight deadlines to follow and several other timely formalities to fulfil. All of this can be really time consuming as well as confusing. Therefore, it is a safer bet to resort to self-assessment tax and annual return outsourcing rather than struggling to make things right. Using the services of an expert will also help you easily get over tax hiccups (avoid penalties) and even deal with the constant changes made to state and national tax laws.
- You will have access to the latest software and technologies
The business landscape is continuously changing, with new technologies and software tools being introduced every day, but these come at a cost that is not always possible for every company to manage on its own. When you outsource accounting and bookkeeping to a specialist provider, you get seamless access to these technologies and financial tools, on a usage basis, without having to invest in installation and maintenance. All you pay is a subscription fee to the service provider.
The idea of outsourcing the accounting function is often associated and marred by several negative connotations, but the benefits of outsourcing far outnumber the grey undertones. Therefore, the decision to outsource your accounting work will not only help grow your business but also result to more profits.