Why limited companies should consider outsourcing accounting

Why limited companies should consider outsourcing accounting
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    Disclaimer: This article is based on legislation which was correct at time of publishing on December 14, 2022

    In the early days of a new business, accounting tasks are relatively manageable for most owners. As the business begins to grow, it’s essential to adopt good financial practices to ensure the best chance of success. Good accounting expertise is by no means cheap, which is why many successful limited companies outsource accounting to a trusted service provider, such as Butt Miller.

    Limited companies that have outsourced accounting services enjoy many benefits. It provides access to expert accountants, saves time and is much more cost-effective than hiring an in-house team. It also ensures that good financial processes are established to minimise risks.

    If you are looking to outsource your accounting function to a trusted partner, then Butt Miller Chartered Accountants would be delighted to help. We serve clients throughout Surrey with a range of outsourced services, including bookkeeping, payroll, tax returns and management reporting.

    To enquire about our services and outsourced accounting service packages, please get in touch.

    What are the benefits of outsourcing accounting services?

    Outsourcing accounting services has many benefits for small businesses. By choosing to outsource your accounts you will enjoy more time, cost savings and greater control of your finances. It also allows the service to be scaled seamlessly as the business grows.

    Time-saving

    The most immediate benefit to outsourcing your accounting is time-saving. You can leave the day-to-day grind of financial management to your service provider while you manage and grow your core business.

    Cost-effective

    Outsourced accounting will save you money on full-time salaries and reduce costly staff turnover. A good accountant partner will also proactively find ways to make your operations more profitable.

    Compliance and accuracy

    A professional accounting team will ensure that your company remains compliant with all of its legal obligations, to avoid costly mistakes. The work of skilled professionals is also less prone to human error.

    Top-level of expertise

    Outsourcing makes quality accounting services affordable to small businesses. The expertise of a large accounting firm can give fledgling companies a competitive advantage, making them more efficient, profitable and less exposed to risk.

    Support to actively grow your business

    A good accountant partner will provide advice and support to help you grow your business sustainably. They can provide valuable financial insight to guide your decision-making and drive your business strategy. By outsourcing your accounting, you are making a wise investment in the future success of your business. 

    Get in touch with Butt Miller to discuss our outsourcing services and how we can support your small business on the path to success.

    When should you consider outsourcing?

    You can successfully outsource accounting services at any point in the business cycle, but the earlier, the better.

    Start-ups often prioritise outsourced accounting from day one, to establish proper financial systems while allowing the owners to focus on getting the company off of the ground.

    Established small businesses and limited companies that have experienced growth and are starting to employ staff require precise financial management. So this is also an ideal time to consider outsourced accounting services, as the risks to the business start to increase.

    If you are ambitious and looking to capitalise on your business opportunity while minimising risks and expensive mistakes, then working with an outsourced accounting firm is an excellent solution.

    What accounting functions can you outsource?

    All types of accounting work can be outsourced, depending on your particular business needs and budget. Here are some examples of what types of functions you can outsource.

    Bookkeeping services

    Outsourcing bookkeeping can be the biggest time-saver, taking away the burden of day-to-day accounting tasks such as invoicing and bank reconciliations. Butt Miller uses the latest cloud accounting software to ensure our clients stay in control of their cash flow with ease.

    Payroll

    Payroll is notoriously complex and time-consuming. Outsourcing it to a professional accountant gives you peace of mind that your employees are paid on time and that variables such as pension contributions and National Insurance are calculated correctly.

    VAT and Corporation Tax planning

    To put your company in the best position come year-end, it is essential to plan sufficiently for tax and VAT payments. An accountant will ensure that you maximise your tax efficiency by utilising all available tax deductions and reliefs.

    Financial reporting

    Management reports on a regular basis are essential for keeping sight of your finances. An accountant can provide regular business information and analysis to inform your decision-making and bolster your business development.

    In-house accounting vs outsourced accounting

    The challenge with recruiting an in-house accounting team, especially for smaller businesses, is the prohibitive cost. Often, businesses will compromise and hire less experienced accounting staff, which can do more harm than good.

    With an in-house team, changes in personnel often leads to inconsistency and confusion. Outsourced accounting reduces the risk (and cost) of high staff turnover, giving you the guarantee of seamless service.

    Butt Miller can fulfil your outsourced accounting needs

    The right accountant partner can add a lot of value to your business. Butt Miller are trusted outsourced accountants to many small to medium-sized businesses in Surrey and the surrounding counties.

    Our clients benefit from a dedicated, highly skilled team to undertake their accounting work, saving them valuable time to focus on their core business.

    If you have decided to outsource accounting services then you are making a sound investment in your company. We would be delighted to discuss your individual accounting requirements with a view to providing a quote for our services.

    Please contact us and we will be in touch as soon as possible.

    FAQs

    Will outsourcing accounting save my company money?

    Many small business owners can’t afford to hire a full-time, in-house finance department, so outsourcing is by far a more cost-efficient way of accessing the accounting support they need.

    Although outsourced accounting fees may seem like an unwelcome cost to start with, if you choose the right partner it will undoubtedly reduce business costs over time. You will save on recruitment costs, and full-time salaries, for example. You simply pay for the hours required to fulfil your accounting functions.

    Along with affordable accounting services, a good accountant will also be proactive in identifying efficiencies, to make your company more profitable.

    What makes a good outsourced accounting firm?

    When outsourcing your accounting, it’s essential to find a reputable accounting firm with a proven track record. Be sure that they utilise the most up-to-date accounting technology as part of their solution and have a strong client and staff retention rate.

    When considering proposals, ensure that the accountant understands the important aspects of your business and provides recommendations on where financial improvements are possible. A good accountant partner will not only do a meticulous job in processing your financial data, but they will also provide proactive financial advice to help your company to grow.

    How does accounts outsourcing work?

    Outsourcing is the act of appointing an accounting firm to undertake tasks such as bookkeeping, payroll and management reporting, rather than hiring an in-house accounts team.

    Most good chartered accountants, such as Butt Miller, offer set monthly packages or can tailor outsourced accounting services to meet the particular needs of their clients. Services are generally charged on a monthly basis.

    Want to learn more about accounting processes and services? Check out our guides:

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    Who we help at Butt Miller

    We provide many different businesses with outsourcing solutions to help make bookkeeping and financial reporting simple. Our outsourced finance function is backed by sector specific experts who sit behind the scenes, crunching the numbers and providing valuable advice and insight.

    We are able to offer support across a number of different industries ranging from:

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