When should you outsource your accounting?

Business is going well, and you have seen a steady increase in your monthly income. You know that you are spending a number of days a month preparing your financial records, and that is eating into your business hours. And you’re asking yourself when should you outsource your accounting, and why?

Let’s take a look.

Time

If you find that either you personally, or a member of your team, is required to dedicate typically working hours to your accounting - consider how cost-effective that is. An accountant for a small business can cost as little as £50 a month, and sometimes less. The time that you spend on your accountant could be the time that you are pitching, winning, and completing high-ticket projects.

Data

An accountant can prepare and submit detailed performance data about your business. This is presented in such a way that you can make data-driven decisions going forward. The chances are you don’t have the time to gather all of the data, produce a report, and then work on them. Having an accountant who can provide these reports to you, tailored to what will benefit your business the most, is a no-brainer in terms of business growth.

Numbers

If you have a financial background or are adept when it comes to looking at figures, then you have the advantage of being able to keep your books for quite a long time. You may just need to hire a bookkeeper to handle small operational tasks, which would costs less (read more here). However, if you have been winging it for a while, then the chances are there are a few mistakes on previous tax submissions, relief that you didn’t know about, and deductions that could've been made. You can’t afford it as a business to make financial mistakes when it comes to your taxes.

Business Growth

An accountant will be able to give you deep insights into the financial side of your business. These tools are invaluable when it comes to planning your taxes, and the strategy within your business. An accountant will free up the time that you have been using to tend to the finances, meaning that you can use your valuable time to grow the business further.

However, if you want to stay as a solo person business for the foreseeable future, then your accounts might be more manageable for a longer period of time.

In the end, an accountant is a highly qualified professional, they typically have years of experience, and can give you the right financial intelligence to take your business forward. You will be compliant with all of the tax requirements for your business, your reports will be in-depth and actionable, and you will avoid all fines associated with tax mismanagement.

Outsourcing in any area of your business makes it possible for you to grow and evolve without requiring you to be hands-on in each area. You have access to highly-skilled accountants, and by outsourcing, you save money on needing to hire a full-time accountant for your team. Outsourced accounting is helping millions of small businesses to be financially prepared for scaling and growth.