Why SMEs Should Outsource Their Accounting Work in This Crisis?
November 19, 2020
The ripple effects of Covid-19 have made a severe interference to the businesses and economies, creating extensive instability worldwide. SMEs in the UK are no stranger to this and are equally affected. The SMEs face various risks and challenges for their operational models and working methods. Hence need to optimise their resources and work around their budgetary constraints to endure the impact of this pandemic.
In such cases, the SMEs should focus on their core business activities and retain skilled people within the company. Companies can outsource other non-core functions to external professional service providers.
Outsourcing accounting & bookkeeping can help simplify and accelerate the decisive aspects of your business. Hence, it is highly advisable that SMEs not spend time, money and effort researching on accounting aspects such as financial statements, tax compliance laws, deduction of employee payroll etc.
Instead, they should devote themselves to improving their revenue and improving their services and products. Hence accounting and bookkeeping outsourcing firms should be hired who will provide accurate financial information to the SMEs and help them make decisions which will ultimately benefit their business.
The Services Offered by Accounting Outsourcing Firms Include:
- Bookkeeping and Payroll
Bookkeeping is the keeping of business records such as bank reconciliations, managing billing records, taxes, general ledger & payroll documents on a period (quarterly, monthly or yearly). Bookkeepers also generate financial statements to be reviewed by an experienced accountant.
- Accounting and Auditing
These are the primary services provided by an outsourced accounting firm. They include improving financial services, preparing tax returns, tracking expenses and revenues, producing financial records and give consulting to a business. By auditing, they offer business valuation services like long-term planning of acquiring fixed assets based on either appreciation or depreciation of assets and clients. For issues like fraud, some accountants may also provide forensic services for the business.
Accountants provide crucial advice to clients on the financial strategies to be adopted by identifying weak areas that are affecting the SME’s profitability and growth.
- Tax Planning
Accountants help in generating new tax codes that help in keeping up with the country’s tax regulations and make a business meet its financial deadlines and requirements. They also advise on lowering the tax burden.
- Management Consulting
Knowing business tax situation, financial standing and the surrounding state of the business environment, accountants can offer business advisory services. They can help an SME identify a business gap, evaluate the current strategies at hand and offer practical advice for a more successful future business.
Benefits of Outsourcing Accounting and Bookkeeping Services
1. Keep up-to-date With Your Financial Situation
As a business, keeping your financial records accurate and up-to-date is crucial for the smooth running of your business. This will help you see financially how strong is your business by giving you convenient access to all kinds of information including outstanding bills, payroll estimation, income information and more.
2. Save Time
Employing a professional Accounting and Bookkeeping firm will free up your valuable time. Not only makes your work easier but also allows you to concentrate on the principal tasks of your business. You can spend more energy improving your business and of course, leave more time to enjoy life with your family, friends and relatives.
3. Save Money
Outsourced Accounting and Bookkeeping services will help you lower costs and increase your profit significantly. You don’t have to pay for overhead costs, sick leaves, vacation, training, managing and other employee benefits. Also, good accountants and bookkeepers will always be on the lookout for opportunities to save you on costs that you may not be even aware of.
4. Secure Your Business and Future
Professional accountants and bookkeepers monitor your books daily to check whether any fraudulent activity or charges are being made. This can stop irreparable damage from happening to your business.
They also ensure that your cheques don’t bounce and that you have a sufficient amount of capital for your next payments. Having up-to-date documents can also show potential investors that you are serious.
5. Improve Decision-making
Experienced and proficient Bookkeeping firm assist you with significant financial decisions for your business. This includes helping you to decide whether you want to purchase inventory, take a loan, hire more staff, manage finances etc.
Doshi Outsourcing has been the leader in providing Accounting and Bookkeeping services to small and medium-sized business in the UK. Reasonable fees and transparent process make us the first choice for UK accountants to outsource their accounting & bookkeeping work. We are having a team of qualified accountants and bookkeepers, with years of experience in UK accounting.