How Your Small Business Can Benefit From Outsourcing To An Accountant

Did you know there are 5.5 million small businesses in the UK, accounting for 61% of employment in the country? That’s a lot of companies and entrepreneurs of varying shapes and sizes.

With so many things to think about like payroll, products and marketing, the headache of sorting out your company’s financials can take up a huge amount of time. 

If you’re considering outsourcing to an accountant, it could be just the move you need to free up your time and resources. If you’re thinking about making the change, we’ve explored the benefits of hiring an accountant for you and your business below.

Benefits of outsourcing an accountant

Compliance with changing regulations

With successive governments making a flurry of tax changes to score political points, it can be a minefield keeping up with the latest accounting news and developments. There’s also tax’s own digital revolution, Making Tax Digital, and its phased roll-out to contend with.

An accountant will be up-to-date on the latest tax compliance, financial reporting and Companies House news. This is because they must commit to ongoing professional development to maintain their qualifications.

As a result, you can benefit from an expert that’s well-versed in any changes to income tax, corporation tax and VAT - and they’ll let you know about them in advance, where possible.

Time and resource-saving

Find your day is overrun with those small financial tasks like invoice processing and data entry? Not only can hiring an accountant take care of this for you, but they can implement streamlined processes tailored to your business.

Outsourcing an accountant rather than hiring someone full-time can also be a smart financial decision for smaller businesses as you can save on hiring and overhead costs. This often suits small businesses, especially ones who don’t yet need an accountant’s services all the time.

Expert financial analysis

Hiring an accountant is essentially benefiting from an expert’s view of your business’ financial inefficiencies and how to make them better. If you’ve ever struggled with cash flow management or tax planning, an accountant can provide valuable insight on handling your business’ finances and finding cost-saving opportunities.

Professional accountants are a great resource in developing tax planning strategies to minimise your company’s overall liability. They can also help you take advantage of tax reliefs, credits and deductions you might not have otherwise known about, saving you even more money. What’s not to love?

Reduced risk of errors

If there’s a mistake on your company’s accounts, you could get a costly fine or penalty which is the last thing a small business wants to deal with. Accountants are in charge of accurately preparing and filing returns and accounts, so it’s one less thing for you to worry about.

In terms of the day-to-day work, an outsourced accountant has the expertise, tools and experience to keep financial records on your behalf, which is essential for keeping up with compliance laws. They can also help keep on top of account reconciliations which can spot fraud and mistakes early on before they become an issue.

Scalability and flexibility

One of the greatest benefits of outsourcing an accountant for a small business is the flexibility it provides. Not every business wants someone full-time as the business is more seasonal, or just needs extra help when tax season rolls around. An outsourced accountant can get the job done quickly and efficiently.

When it comes to a company scaling up, the accounting needs can also grow as needed. An outsourced accountant can provide valuable expertise in any accounting challenges that come with sizing up, taking on more employees or moving into new markets.

Networking opportunities

It’s an overlooked benefit of having an outsourced accountant, but a benefit nonetheless! The world of professional services is a small one and your accountant might have the perfect recommendation for a lawyer, business consultant or financial planner you need for your company.

Depending on the industry your business is in, they may also have connections with other industry experts, suppliers or even potential clients for you. You never know when an exciting connection is around the corner and your outsourced accountant may be the perfect networker for your business.

Wrapping up

Hiring an outsourced accountant could be the best decision you’ll ever make for your business, especially if you’re just starting out. You get the best of both worlds by accessing financial expertise without navigating the complex business accounting world.

Small businesses must stay agile and focused on their core strengths in an ever-evolving business environment. Outsourcing those tricky accounting tasks could be a massive timesaver to focus on what you do best!

At BXD Accounting, we might just be the perfect fit for your small business’ accounting needs. Want to find out how we can help? Get in touch today for a free consultation on transforming your company’s accounting.