7 Reasons Why Businesses Outsource Their Accounting and Finance Processes

If you are as busy as many of our clients, it’s likely that financial tasks like forecasting, reporting and submitting tax returns probably aren’t always at the front of your mind.

Nor is it normally where their strengths lie. As creatives and tradespeople, they would usually not enjoy focusing on spreadsheets or crunching numbers.

However, as your business grows, this essential but time-consuming work needs to be taken care of.

If you have been in business for at least two years and have an annual turnover of around £500,000, outsourcing to a proactive accountancy practice can actually be a great investment.

There are several reasons why businesses choose to outsource their accounting and finance processes. In this article, we will explore the top seven.

Outsourcing your accounting and finance processes gives you access to the expertise of a professional accountant. This can be incredibly valuable, especially if finance, cashflow or accounting aren’t your strengths.

A proactive accountant can offer advice on a wide range of financial matters, from bookkeeping and tax returns to forecasting and cashflow management.

This guidance will keep you well-informed, so you can make better decisions for your business.

Another reason that growing businesses outsource their accounting and finance is to save time.

There are only so many hours in the day.

Are you one of those people constantly working on the business outside of business hours?

Delegate that task as quick as you can. It’s an investment that your business will be grateful for- and you and your loved ones will be too.

Outsourcing tasks like bookkeeping, invoicing and payroll can also free up your time to focus on other aspects of your business.

And having a proactive accountant will mean you won’t have a last-minute rush to get things done.

One of the biggest benefits of outsourcing your accounting and finance is that it allows you to focus on what you do best.

By delegating tasks that you’re not as skilled in or don’t enjoy, you can concentrate on the areas of your business that truly drive growth.

As the owner of your business, your time is limited and extremely valuable, so it makes sense to focus on areas of your business that you can have the biggest impact in.

Making mistakes with your accounting and finance could actually cost you money.

That might be in the form of fines from HMRC, for example.

By working with a respected and proactive accounting firm, who understand the nuances of accounting and tax, you know things will be done correctly.

This provides peace of mind and allows you to focus on other areas of your business.

Do you feel that your accounting and finance could be better managed? To receive more of our tips for implementing a proactive accounting approach, so that you can get more from your business, enter your details at https://bit.ly/proactiveaccountingtips.

When outsourcing your accounting and finance, see it as an investment.

A good accountant will ensure to find ways to save money and see signs when things are not on track.

They will help to:

Make savings

Allocate resources more efficiently, and

Take advantage of tax-saving opportunities

When you’re juggling too many things, you can either miss things, or worse still put it all off until the last minute.

Accounting firms have the experience and expertise to get the job done on a regular basis, both efficiently and effectively.

Additionally, working with a proactive accountant can help you avoid costly mistakes.

Cashflow issues are common for businesses, especially as they grow.

If you don’t have sufficient cashflow, it can be difficult to meet financial obligations, pay employees, or invest in growth.

Constantly worrying about your finances can also take a toll on your mental and physical health.

Working with a proactive accountant can help you to avoid cashflow issues because you will have a clearer view of your finances.

You will also be better equipped to predict when challenges might arise, so you can plan for them and identify ways to improve the situation.

If you want to grow your business, it’s important to ensure your financial systems and processes can support those plans.

If they can’t, you could find yourself in a difficult situation down the line.

Outsourcing your accounting and finance can help you establish the systems and processes you will need.

Whatever stage your business is at, outsourcing your accounting and finance is worth considering. It might just be the best financial and business decision you ever make.

This article was written by the team at Argus Accounting.

Argus was founded by Sharon Hirsch in 2020, and our proactive team has more than 2 decades of experience in the accounting and bookkeeping sector.

Based on Sharon’s experiences growing up, and the conversations we have with so many business owners, it’s our mission to ensure you can run your business in a way that works for you and your family.

We typically work with owners of creative, trade or construction businesses, who have been trading for at least 2 years, and have an annual turnover of around £500,000.

To receive more of our tips for implementing a proactive accounting approach, enter your details at https://bit.ly/proactiveaccountingtips.