Running an SME can be challenging at the best of times, but following lockdowns, the current global recession, supply chain holdups, and changing consumer habits, now might be a good time to outsource your business finances.
With latest figures suggesting that 6 million small businesses and 16 million jobs are in a ‘precarious position’ following the pandemic, outsourcing to industry experts can help your business survive.
Having a robust finance procedure will ensure that the cashflow is being managed properly, and that there are enough funds available to meet the day-to-day payments. Not only will it enable the day-to-day running, but having a handle on the finances will help provide a business growth plan, manage debt, and source financing – all of which are imperative for business success. However, it’s not always possible for businesses to have an in-house expert, and in fact there are some key benefits to outsourcing business finance procedures.
Meet the requirement of the compliances
Hiring a team of expert bookkeepers and accountants will mean that they are responsible for ensuring your company is compliant, whether it’s navigating the additional Brexit tariffs or filing the accounts correctly. Failing to file correctly or on time can be costly, especially for small businesses.
When taking everything in-house, you’re limited to the expertise of the team. When you outsource your financial needs, you have access to a team of experts who together are specialists in every field, including tax specialists, covering VAT, capital allowances, capital gains tax, research and development tax relief, and much more.
Utilising expertise from professional consultancy businesses can offer tailored advice to help with your business growth development. This bespoke approach when paired with financial know-how is invaluable for business success.
Outsourcing your bookkeeping will allow you to concentrate your resources on your core business. Because you are able to spend more time evaluating business processes, interact with customers, and gain feedback from employees, you’re more likely to increase your profit. By concentrating on the sales aspect of the business, and less on the admin side, you’re free to make more informed decisions about the future of the business.
At first it may seem counterintuitive to outsource finance procedures as it will be an additional cost, however, in keeping something so crucial in-house, over-time it could end up costing you more money. The main advantage is that outsourcing allows you to free up man-hours within the firm.
If you’re looking to invest your cash, then outsourcing to experts means that you will have access to someone who has the experience in reading capital markets. Equally, financial experts are better positioned for understanding tax advantages and how to report them in a way that’s beneficial for business.