5 Key Advantages to Outsourcing Accounting Services

Managing your company’s financials is one of the most important parts of running a business. It needs to be right. Outsourcing your account services is a guarantee that your accounting functions will be properly taken care of. A third-party firm can support you with a range of services, from working on your quarterly VAT returns to bookkeeping.

There is a wide range of benefits to seeking support from a third-party firm. Here are five key advantages to outsourcing your accounting services.

5 Key Advantages to Outsourcing Accounting Services

Access to an extensive network: One of the primary advantages of outsourcing your accounting services is gaining access to their wide network. Accounting firms will have valuable access to various professionals, from lawyers to potential business partners. Solid networks are a huge benefit to a business, especially a start-up or a scale-up, and your outsourced accounting firm can recommend future partnerships from their rolodex. At Finerva, we invite our clients to networking events regularly.

Access to an experienced team of accounting professionals: While you can hire an Accounting Manager to work in-house, their experience might not suit a fast-paced, scale-up environment. And a team of just one person might not have the capacity to tackle all your accounting needs, especially during busy periods, such as tax season. When you outsource your accounting services, you get access to an experienced team of accounting and finance professionals. They can weather all busy periods, armed with their extensive knowledge and experience. If your business is expected to grow rapidly, you need to work with accounting professionals who can guarantee that your financials are properly managed.

Narrow your focus: Outsourcing allows businesses to focus on their strengths while a trusted professional can take care of the rest. Attempting to focus your efforts on an area of the business that isn’t within your skillset will waste time and resources. Putting those responsibilities in the hands of an experienced professional means you can redirect effort and time into growing the business. Having the time to focus on core activities is especially important for fast-growth businesses, whereby it’s easy to let the main objectives take a step behind the day-to-day operations.

Savings: One of the main advantages of outsourcing your account services is the potential money savings. Outsourcing allows businesses to save the costs associated with hiring and training accounting employees. You can work on a monthly retainer with an accounting firm, or you can pay for services when you need them. The savings you make can be redirected into other areas of the business that will actively support growth.

Useful and timely reports: Outsourcing your accounting services means you work with a reliable and efficient team. They will produce accurate and timely financial reports, which will help you understand how the company is performing. Financial reports also help you make informed decisions, based on your predicted revenue and losses.

5 Questions to Consider When Choosing an Accounting Service

Accounting is one of the most important areas of your business, and it’s vital that you work with a firm that suits your requirements. Here are five questions to consider when choosing an accounting service:

Have they worked with similar businesses?

Take the accounting firm’s track record into account. While they might not have worked with the exact same type of business, it’s beneficial to know that they have dealt with businesses that are a similar size to yours. It’s also critical that the outsourced firm has experience in your sector, as different industries might encounter specific regulations.

Have they got solid client references?

Checking testimonials is one of the most important things to consider when choosing an accounting service. They’ll give you an insight into how beneficial it was for the business and the firm’s performance. We recommend speaking to current customers, if possible.

Does the cost fit your budget?

When making outsourcing decisions, cost is a significant factor. While outsourcing accounting services can save hiring and training costs, your budget must allow it. Accounting is a hugely important section of the business, so it’s important to choose a reputable, experienced, and knowledgeable firm, and sometimes they are more expensive than other firms. They’re worth holding out for, though – it’s your business’ financials, after all.

Is location important to you?

Consider how important the firm’s location is to you. While technology allows you to work with firms that aren’t based in your region, some businesses like to have regular in-person meetings with their client.

Are they compliant with data protection laws?

It’s critical that your financial data is protected. We recommend discussing data security measures with the firm, and what they will do to protect your data. That could include access controls and encryption – at the very least, they should be compliant with data protection laws.

How Finerva can help

Accounting is our bread and butter. We’ve been helping fast-growth businesses with their accounting functions since 2017, and our team of experienced advisors are well-positioned to support your business. We’re not just all about the numbers, though – each client works closely with a chartered account manager who will get to know them and their business. If you’d like to discuss the range of accounting services we offer in more detail, get in touch today.