Save Money In The Long Run By Outsourcing Your Bookkeeping
Keeping accurate track of your income and expenses is key to succeeding as a small business.
There are 5.8 million small businesses in the UK, which represents around half of the turnover of our private sector. Handling the books is a common frustration for SME owners, who may not have the necessary time or expertise to crunch numbers whilst also trying to manage staff, marketing, customer service and other daily operations. When startups launch, it’s understandable that entrepreneurs try to do everything themselves to keep costs low, but one job which is worth outsourcing from the beginning is accountancy. By letting a professional take charge of tracking expenses, bills and income, you can be confident that you have an accurate picture of how your business is progressing as you grow. The key to success is choosing the right accountant to work with your venture.
Previously, you may have chosen someone who was local to you as face-to-face interaction was vital for the relationship between accountant and client. However, the digital era has brought with it multiple changes in the accountancy industry and it’s now possible and even desirable to use methods of communication such as email, Skype, Slack and cloud-based accountancy solutions which can offer real-time data about the financial health of your SME. Unless you would prefer the reassurance of having your accountant located physically near to you, find out what your chosen firm can offer in terms of software solutions and whether you would find them convenient for your company.
Qualifications and Experience
UK businesses will likely require the services of a chartered certified accountant who belongs to a professional industry that is regulated by the government. It is possible to hire someone with lower level qualifications in general bookkeeping for example, but this isn’t usually a sensible move if you’re planning to grow as a business. If you hire a professional, then you know that your books are in great hands. In terms of experience, a firm of accountants in Peterborough suggest that you look for an accountant who has worked with similar sized organisations to yours and has handled the tasks that you’re hiring them to do – for example, filing your end of year tax return.
Dividing The Workload
Once you know how much your preferred accountant may charge per hour, it’s important to work out how you plan to split the workload so that you’re receiving value for money. Although it’s possible to send an entire bunch of receipts to your accountant for them to enter and track, you may find that it’s more cost-effective to handle the manual data-entry at your end, and ask your accountant to take charge of tasks such as reconciliation or payroll.
If it’s time to get in the professionals to look at your books, begin by asking your network of contacts, whether through friends and family, business colleagues or on social media for a personal recommendation. It’s always best to go with a firm that you have heard positive things about and the right choice of accountant for your small business should be able to save you money in the long term!