As a small business owner, there are a thousand and one things on your mind at any time, but bookkeeping doesn’t have to be one of them! We know that managing these tasks can be stressful and time-consuming, potentially leading to inaccurate tax filing and penalties from HMRC. To alleviate these challenges, consider the benefits of outsourcing bookkeeping to an accountancy practice.
Accurate and up-to-date bookkeeping is the backbone of your financial health while providing insights into cash flow, profitability, and overall business performance. This blog will explore why outsourcing bookkeeping services is a game-changer for small businesses.
What are the benefits of outsourcing bookkeeping tasks
Bookkeeping can be tedious, especially for business owners who tend to handle multiple business activities. Partnering with a renowned accountancy practice can unlock many benefits to meet your bookkeeping needs and help you expand your business while keeping your sanity.
1. Dedicated bookkeepers
For many small businesses, maintaining an in-house bookkeeping team might not be feasible due to the high overhead costs. By outsourcing bookkeeping services, you gain access to professional bookkeepers who specialise in handling intricate bookkeeping activities.
These qualified bookkeepers stay up-to-date with the latest accounting practices and HMRC regulations, ensuring your books are accurate and compliant. Moreover, you are getting a dedicated accounting team to handle your bookkeeping needs. Outsourcing guarantees you the proper skill set to meet your unique needs.
2. Scalability and flexibility
Your accounting and bookkeeping needs will inevitably change as your business grows and develops. In terms of scalability and flexibility, an outsourced bookkeeping service provider can meet your business needs and allow you the time to scale your business more rapidly. Moreover, they are equipped to adapt to the changing requirements of your accounting and bookkeeping needs.
A reliable accountancy practice can offer flexible packages tailored to your business needs so you do not have to worry about your sudden increase in your accounting and bookkeeping. You can focus your time on core business activities and take your business to the next level.
3. Lower operating costs
Contrary to popular belief, one of the most common benefits of outsourcing bookkeeping is reduced operating costs. While hiring an in-house team of bookkeepers, you incur expenses beyond salaries, such as employee benefits, taxes, payroll, training, infrastructure and software.
On the other hand, outsourcing allows you to pay a monthly fixed fee based on your selected service package. It will also help you to estimate a predictable cost structure. You can plan your finances better as it will eliminate expenses for the sudden increase in bookkeeping activities. Additionally, you can avoid a significant overhead of an in-house team and save your money.
4. Reduce errors
Maintaining accurate bookkeeping records is essential for every business. Even the slightest error in your bookkeeping can lead to massive consequences, from misleading financial projections to inaccurate tax filing. As a small business owner, you need to supervise multiple facets of your business; adding bookkeeping to your plate might even increase the chance of mistakes.
With outsourcing, your bookkeeping functions are handled by qualified and experienced bookkeepers well versed in HMRC regulations and best bookkeeping practices. Also, these accountancy practices use the latest accounting software, reducing the chance of human error while ensuring your financial data is accurate and up to date.
5. Get detailed financial reports
Firms which take on bookkeeping, whether accountancy or bookkeeping-specific, are equipped with robust processes and advanced software which provide insightful financial reports based on your business needs. These in-depth reports will help you to get a clear picture of your business’s financial health, cash flow statements, budget comparisons, transactions, and profitability.
Beyond essential bookkeeping functions, these professional bookkeepers can help you leverage these reports to identify areas of improvement. It will also help you to make data-driven business decisions regarding strategic investments, resource allocation, product development, pricing strategies, and optimising business strategy.
6. Save time and reduce paperwork
Bookkeeping is one of the most time-consuming processes that must be done precisely to avoid any mistakes. It can consume most of your valuable time that would be better utilised in business development activities. By outsourcing bookkeeping services to a reliable accountancy practice you can free yourself from doing repeated tasks like reconciling accounts, managing receipts, etc.
Professional bookkeepers use cloud-based accounting software that helps them significantly reduce the burden of physical paperwork. They will suggest software which will help you to manage the gathering of data to deliver even greater time saving for your business.
7. Less stressful tax seasons
For any business, tax seasons are daunting and stressful. If regular bookkeeping has not been undertaken, what should be a fairly painless task can become a nightmare as you try to pull all of the relevant information together. Having organised and accurate bookkeeping records is essential for a stress-free tax filing.
Businesses that have outsourced their accounting and bookkeeping services to an accounting practice felt less stressed during the tax season. Outsourcing ensures your books are maintained meticulously by a qualified bookkeeper who will ensure your business complies with HMRC regulations. It translates to a seamless tax season where you can have peace of mind as your dedicated bookkeeper will handle your tax filing accurately and efficiently, providing you with a sense of security.
8. Access to the latest accounting technology
Often, small businesses find it challenging to keep up with the latest technology essential for cloud accounting software solutions. By choosing to outsource bookkeeping functions to an accountancy practice, you can gain access to their accounting software while reaping its benefits for your business.
Outsourcing companies invest in cutting-edge technology and tools that streamline their bookkeeping process. These platforms are known for improved accuracy, automated data entry, secure data storage, real-time access to financial reports, and data compliance.
Benefits of outsourcing bookkeeping to Lyel Accountants
No matter the type or scale of your business, keeping precise records of your transactions is a legal requirement. Bookkeeping can be tedious, complicated, and demanding—it’s no wonder you might want to avoid it.
At Lyel Accountants, we understand the challenges faced by small business owners in the UK. Our professional accountants help individuals, entrepreneurs, and small businesses with tax issues and offer long-term and efficient accounting and financial planning. Let us take the burden off your shoulders with our expert bookkeeping services while you can focus on what you do best.
