Businesses often choose to keep bookkeeping in-house (onsite) to have better control on the data, be on top of related data security, and just because “they have kept it in-house always.” Honestly, this works fine unless you want to grow your business in the right direction and not get stuck in operations challenges.
To use expert services, to ensure the latest bookkeeping trends are followed, to keep the team up-to-date with all bookkeeping compliance adhere, to ensure the team is the right size to manage high and low work volumes and to cut down on costs, accountants decide to look for bookkeeping companies in the UK and for corporation tax return outsourcing.
Other than this bookkeeping, it isn’t considered very profitable or a high-quality value add task. It is rather a task that is more record-centric, where accuracy matters more.
There are many ways a firm benefits when they outsource bookkeeping services.
1) Managing Work Volume with a Flexible Team: Most accounting firms have a hectic schedule at certain times of the year. To manage the sudden peaks, hiring extra members isn’t the right solution and isn’t viable either. This adds more pressure to the team while they already have a critical task on hand.
Offshore bookkeeping allows scaling up and down of the team as and when required, and they can pull people up from their talent pool whenever needed.
2) To Focus on Core Areas: Accountants should use their time efficiently to focus on their clients and their accounting needs. Clients look up to accountants to not only manage accounting for them but also guide them as business advisory and consulting services.
To perform these value-added tasks, it is important for the accountants to have enough time on hand and not indulge in tasks that someone else can take care of well.
3) Business Expansion: Expansion of any business requires a substantial investment. While accountants may plan that they will look at business expansion and invest their once they have doubled up the profits. This doesn’t work this way, and most businesses end up emptying their coffers when they do so. This is where outsourcing helps, as it helps cut down on costs for recruitment and staffing.
4) Being Audit Ready: Outsourcing bookkeeping keeps books tax and audit ready. Neither the integrity nor confidentiality of the data is in question with the NDAs and other confidentiality agreements in place, nor is the accuracy, as the bookkeepers are experts in this. From ready finance statements for the banks and auditors, to creating a report for the investor or IRS, outsourced bookkeeping service providers do it all.
5) Other Essential Benefits:Outsourcing helps with a quick turnaround of tasks as compared to those done internally. Better quality too comes into the picture as the bookkeeping outsourcing firm signs up for a high-accuracy bookkeeping service, and there is flexibility for the accountant to take on clients regardless of the software or tool they use as the bookkeeping outsourcing firm will have licences for all possible tools.
Outsourcing bookkeeping is certainly the right choice for accountants. Other than saving on cost and focusing on core areas, what accountants should look at is allowing experts to take care of their bookkeeping needs. It is a strategic step for any business endeavor that helps firms to tap into a huge talent pool of specialists at an economical costs.