How outsourced accounting can help you and your business
In this Making Tax Digital (MTD) age, having the right cloud accounting systems and procedures is fundamental to all successful businesses. However, the number of businesses that have inadequate systems and procedures, particularly in the SME sector is enormous. Consequently, the business owners don’t understand how profitable their business is, or where it’s cash flow is heading. Unless you know the numbers you cannot properly manage your business and remember the saying ‘what you can measure you can manage’.
As well as helping you manage your business, having a well-run accounting function with timely and informative reports will give third parties confidence in the business. The biggest single criticism banks and other investors in SME business have, is their lack of financial management control all stemming from an inadequate accounting service area. Whether it is your bank, asset-based lenders, suppliers and even potential equity investors, your chances of obtaining funds for your business will be significantly improved with a good accounting function.
Increasingly businesses of all sizes are outsourcing many of the services and business functions they provide. Typically but not exclusively, these will include accounting, HR and IT. The reasons for outsourcing are many but some of the most common are as follows:
Cost reduction and savings;
Lack of specialist skills within the business;
Not cost effective to employ permanent staff where the service requirement may not justify a full time role;
Frees up business ownersmanagers to focus on areas of the business where there strengths are;
Service areas dealt with by specialists in their field; and,
The service area is covered the whole year without having to worry about leaves of absence, for example holiday, sickness and maternity leave.
As Manchester based Accountants, we can provide the following Outsourced Accounting services using various Sage and Xero software applications. We are members of the Sage Accountants Club and Xero Certified. The Accounting service area covers a number of different functions, all of which are capable of being outsourced, either individually or combined as part of a larger service package. Typically the areas are:
Payroll and PAYE/NI Compliance
Cash Flow Management
Purchase Ledger/ Accounts Payable Management
VAT Compliance including Returns
Although we are Manchester based, we are able to provide our services anywhere in the country as our software is all hosted in the ‘Cloud’ and using electronic communication.
Why not get in touch with us so we can explain the full details on the concept and benefits to you and your business.