Outsourced Finance Team VS In-house Accountant
As businesses become more and more digital, savvy business owners are now taking advantage of the latest tech and ways of working to increase productivity, improve cash-flow and become more profitable. Cloud systems have changed the ways in which businesses operate, but are you going to be left behind even with modern systems if you aren’t upgrading the processes and thinking at the same time?
When it comes to managing the financial side of your business, one important decision you'll need to make is whether to hire an in-house accountant or outsource this to an external finance team. This decision can often occur when a Finance Manager or Director is leaving the business and the owners needs to decide whether they should go through the recruitment process or look for external experts to assist.
Both options have their advantages and disadvantages, so it's important to weigh them carefully before making a decision.
One of the main benefits of outsourcing an accountant is cost savings. Outsourcing can be significantly more cost-effective than hiring an in-house accountant. An in-house accountant will typically require a salary, benefits, and office space, all of which can add up quickly. Outsourcing, on the other hand, allows you to pay only for the services you need and avoid additional costs associated with hiring an employee.
A real world example of this is a potential client who was considering replacing their £60,000 a year Finance Director but had a conversation with us first and were glad they did. We worked with them and helped change a few processes in the business and the clients now gets everything the previous Finance Director produced (and more) and in their words ‘on another level’ for only £800 per month (£9,600 per year). Plus not having to worry about recruitment costs, holidays, pensions, contracts, redundancies etc. We can help at all levels depending on the business needs and have some clients only paying £100 p.m. which can remove a lot of the burden and headaches of compliance.
Another advantage of outsourcing is that you can access a wider range of expertise. When you hire an in-house accountant, you're limited to the knowledge and experience of that individual. Outsourcing allows you to access a team of professionals with a range of specialisations and experience, which can be particularly beneficial for businesses that have complex financial needs. Always ensure you work with qualified accountants who are fully based in the UK to avoid the countless horror stories which are only a google away.
Outsourcing also allows for greater flexibility. When you outsource, you can scale your accounting services up or down as needed. For example, during tax season, you may require more assistance than at other times of the year. An outsourced accountant can provide additional support during these busy periods and then scale back services as needed. This can save your business money and resources.
Outsourcing also can reduce the paperwork and compliance burden on your organisation, as well as providing benefits such as work continuity, since outsourced accounting firms usually have processes and backup for unexpected absences.
However, there are also some potential downsides to outsourcing an accountant. One is the lack of control and oversight over the work being done. When you have an in-house accountant, you have direct oversight of the financial information and records. With outsourcing, you'll need to trust that your outsourced accountant is handling your finances properly. In this sense, communication and trust are crucial. At Sllick we display testimonials on the website and other clients are always happy to provide additional insights. One of the things clients love about us the most, is really getting to understand the business, doing away with pointless management reports, working with the business to build bespoke reports and KPI’s which really help that business make decisions, which can have a huge difference on business performance.
Another downside is we can’t make the coffee, I’m sorry, we tried it before and it just doesn’t work. Although, we’re always happy to meet up from time to time and grab a real one.
In conclusion, outsourcing can be a cost-effective and efficient way to manage your business finances, but it's important to consider the advantages and disadvantages of both options before making a decision. When outsourcing, it's vital to find a reputable and reliable Qualified accounting firm that can provide the services your business needs. With the right partner, outsourcing can help take your business to the next level by providing access to a wider range of expertise and flexibility while saving cost and providing benefits like continuity and reduced compliance burden.
If you would like to see if Sllick is a good fit with working with your business then get in touch, you might be surprised how much we can help, plus we’re super nice and friendly.