May 20, 2020
In recent years, progressively more accountants and accounting firms in the UK are considering outsourcing accounts services. Outsourcing has become a very ideal solution for many in the current market situation, where all businesses are facing tough competitions. Outsourcing accounting work is helpful for the expansion and growth of a business.
Before you decide whether you should take the outsourcing route or not, it is better to know the pros and cons of outsourcing. Let us run through some of the key points one by one.
Advantages of Outsourced Accounting Services:
This is the most attractive reason why businesses outsourced their accounting services. It can surprisingly reduce your employee cost. Further, if you go for accounting outsourcing companies based in India, where there is significant exchange rate difference, you can get more benefits without compromising skills and quality at less cost.
Access to a Pool of Experts
With the help of outsourced accounting services, you can avail the service of highly experienced professional accounting staff. Accurate and up-to-date financial information will help you in making the right business decisions.
When you know that your accounting task is handled by experienced and qualified professionals; it substantially reduces your concerns. Outsourcing tedious tasks will give you extra time in a day, you can use this time in the growth of your business.
Latest Technology and Tools
In this age of digitization, everything is changing rapidly, and accountancy is no exception. However, the changes in accounting software and tools call for additional costs. Therefore, accounting outsourcing can prove to be a great option to avail the latest and updated accounting tools without incurring any costs.
Legal Compliance and No Penalties
This is one aspect which is very difficult to look after for most business owners in their daily business operations. Inaccurate accounts and failure to meet HMRC and Companies House deadlines may result in high penalties. Therefore, it is better to outsource accounting and tax returns to professional companies, who can ensure that your accounts prepared and submitted before the deadline.
Disadvantages Of Outsourced Accounting Services:
Lack of Control
This is what many accountants and business owners experience while outsourcing accounting services. This is because they want to see someone working in front of them, whom they can talk and advise whenever required. Some business owners find it uncomfortable to hand over the control of the books. Here, frequent communication and trust play a vital role in a fruitful relationship.
This is subjective because there are certain employers who really do not want their employees to go redundant. Outsourcing of work without proper planning may result in staff redundancy sometimes.
This is one of the most common concerns of owners when they think of outsourcing. It is always better to have someone in-house for quick communication, which is sometimes not that easy with a person sitting a thousand miles away in a different location. However, the outsourced accountancy service provider can ensure that you can easily and instantly contact them.
Hope this article has cleared your doubts regarding outsourcing accounting services. You can contact us in case if you still have any question which is not listed above. We will happy to assist you.