Outsourcing your accounts Vs. In-house
Friday, September 18th, 2015
Should your business look after its own accounts, or outsource that responsibility to another company? The answer is not a simple one. In fact, it can depend on a huge variety of factors, but here at Accounting People we can ease your decision-making on this issue by pointing out the most crucial factors to consider when weighing up whether to outsource accounts or keep them in-house.
Could it influence how well the accounts are looked after?
You may have great accounting expertise, in which case, you could understandably be very reluctant to hand the job over to an outside company. You would be wise to be reluctant if you struggle to find a sufficiently promising company to outsource to.
Before outsourcing your accounts to any company, you should check, as far as you can, that they have the necessary skills to fulfill the responsibility properly. You should, for example, look at their qualifications. Do they hold qualifications from bodies like the ACCA (the Association of Chartered Certified Accountants) or CIMA (Chartered Institute of Management Accountants)?
If, after lots of research, you decide that no other company is likely to do the job in a more time-sensitive and cost-sensitive manner than your own, continuing in-house operations should be the best solution. This would also make it easier for you to keep a regular eye on the accounts to make sure that they genuinely are being completed to the necessary, or an even better, standard.
Which option could leave your company financially better off?
If you run a business start-up, you could be particularly concerned about the immediate financial costs of outsourcing. However, you should remember to weigh this drawback against the potential long term benefits. This is worth considering, particularly because the quality of the service can have a significant influence on the long term cost.
Outsource and you could use your company’s freed-up time to attract more revenue through, for instance, corporate networking or developing closer relationships with your customers. Meanwhile, with the accounting left to a thoroughly dependable outside company that is knowledgeable about business tax, your business is unlikely to find itself on the wrong side of tax authorities and having to pay hefty financial penalties for sloppy bookkeeping – you could also benefit from perfectly legal money-saving avenues that you had not thought to include in your tax return.
With a less reputable company, however, your company’s financial data could be unnecessarily compromised. Keeping that data in-house can help prevent it from leaking. It can also ease your company’s communications with whoever is doing the accounting.
Get in touch with us today to discuss how we can help your company save money with our professional accountancy services.