The Benefits of Outsourcing Small Business Accounting in the UK

You are on the right blog if you’re interested in outsourcing your enterprise’s accounting and finance services to a small business accountant but still need clarification about what that means. Our expertise in this field means we know there is to know about outsourcing accounting to a small business accountant.

We are here to clarify and answer any tough questions you might have.

You can use a free quote-finding tool to find the right firm and your small business accounting needs. Please give us details about your business, and we will get you in touch with trusted small business accountants that are right for you. They will be in touch with tailored quotes and information.

What is accounting outsourcing to a small business accountant?

Accounting outsourcing is when a business outsources its accounting services to a small business accountant. The small business accountants, an accounting firm, will do the tax and accountancy services for that business.

This includes bookkeeping, payroll, tax, accounts payable, accounts receivable, and bank reconciliation. In addition, some small business accountants offer other services, such as marketing and business planning.

When outsourcing accounting, one could outsource to a small business accountant that takes care of every part of your accountancy and taxes, or one can outsource specific tasks. This is rare; however, as businesses, you almost always get more value from an ongoing engagement with an accountant who will guide them and help them easily navigate this complex area.

What are the upsides of outsourcing accounting & bookkeeping?

Several benefits come with outsourcing accounting services to a small Business Accountant, which we’ve outlined below:

Save money Outsourcing accounting to a Small Business Accountant is typically more cost-effective than keeping it in-house. However, it would be best not to worry about your expenditures and time on salaries, training, sick days, and insurance.

Scale your business As your small business grows, your tax and accounting needs will change. Outsourcing makes this process much easier, as the firm will have the knowledge and right expertise to deal with this smoothly. In addition, Small Business Accountants will generally offer advice and guide you on the right path so you can make expertly-guided decisions for your business. 

Increase efficiency Outsourcing accounting to a Small Business Accountant does more than save you time, money, and resources. Still, it also means that the super important parts of your small business are taken care of by a Small Business Accountant, such as payroll and tax, and are looked after. It also means you won’t have trouble with the law by filing late or incorrectly. Unfortunately, doing so can mean you might have to face monetary fines. Outsourcing increases your business’s efficiency thanks to hiring a Small Business Accountant, preventing this from happening. 

Increase flexibility Outsourcing to Small Business Accountants means you should be fine with whether or not these important accountancy tasks will be done. Instead, you can leave them in the hands of the accountancy firm and harbor the confidence to know that the work will be executed accurately and on time. by the Small Business Accountant, You also get to be more relaxed with your time and focus your time and resources on those parts of your work that better fall within the range of your expertise and knowledge. 

Average outsourced accounting services cost

You can expect to pay around £500 annually for Small Business Accountant services, although this price can vary based on your business’s needs.

Basic accounting services typically cost roughly £25 to £90 per hour, whereas higher-end Small Business Accountant services can cost £120 to £150 per hour.

If you run a start-up and need basic tax and accountancy services, you might only have to pay a one-time fee of a few hundred pounds each financial year. However, this price will increase as your business grows or if you need more services.

The rates for hiring a Small Business Accountant depend on the services you require and the scale of the business. Unfortunately, not all Small Business Accountants are transparent about cost, but they’ll usually offer a free consultation, so you can better get to know their services and costs.

What are services in accounting by a Small Business Accountant?

A business could need several different accounting services from a Small Business Accountant. Some of the popular ones are:

Bookkeeping This service tracks and notes the financial transactions of your business. Business accounting usually costs around £59 – £200 for a small business with £10,000 – £30,000 yearly turnover.

Tax accounting Small Business Accountants will calculate the tax your business needs to pay and consider any deductions. For example, businesses with a yearly turnover of £0 – £100,00 can be expected to be paid around £75 – £100 for Value Added Tax returns.

Payroll Calculating and paying employees on time is a basic part of the payroll process. Other relevant tasks include payroll tax and deductions. Payroll costs around £200+ per month for businesses with approximately 10 – 50 employees.

Bank reconciliation is the complete process of matching up your small business’s bank statements with your financial books to ensure accuracy and find any discrepancies. 

Accounts payable: When you owe some money to other businesses and suppliers, this is a short-term debt. With the help of your Small Business Accountants, this service ensures that your accounts are paid on time. 

Accounts receivable  If your small business is owed money, the Small Business Accountant ensures the money owed is paid. 

How does accounting outsourcing work with the help of Small Business Accountants?

Outsourcing your accounting to a Small Business Accountant first involves finding the firm for your small business. While most Small Business accountants offer accountancy services and core tax, some also offer other services such as business development, marketing, and help with funding.

Another important aspect is the budget. It can be tricky to vet potential Small Business accountants in this respect, as they need to be more transparent with pricing. However, many firms are, and you can always request a free quote where they need to be.

For a much faster route to comparing prices, you can use our free services and a tool to be matched up with the Small Business Accountant for your business. Give us brief details, and we will do all the hard work. You will then receive no-obligation quotes from providers so you can compare and save.

A Small Business Accountant depending on which and how many services from a Small Business Accountant you are outsourcing, you’ll need to hand over relevant documentation. If you switch from another firm, some firms will handle this process, so you don’t need to do much of the legwork.

Alternatives to accounting outsourcing to a Small Business Accountant

While outsourcing to a Small Business Accountant is a good option for many businesses, it may only sometimes be right for you. If you have budget constraints and you wish to have increased control over your tax and accountancy services, there are some alternatives to outsourcing a Small Business Accountant.

You could think of cloud-based accounting software with built-in programs and tasks to help you carry out basic tax and accountancy tasks. These include bookkeeping, payroll, billing, and invoicing.

Accounting software allows you to manage various accounting elements while keeping them in-house. This is typically an affordable option, although pricing depends on the Small Business Accountant you go for.

Using accounting software is much cheaper than having an accounting team in-house, as you do not need to fork out salaries or deal with training, insurance, or sick days.

Is accounting outsourcing to a small business accountant right for you?

Accounting outsourcing to a small business accountant is a good option for many small businesses, as it can save you time, money, and resources if you hire. It also means you can rely on experts and discuss important financial matters with professionals.

There are some drawbacks to outsourcing to a small business accountant. For example, issues with small business accountants beyond your control can result in major headaches, as accountancy and tax are time-sensitive. In addition, you have to leave these tasks to a small business accountant, who will usually have little control over them. That said, some small business accountants offer you the chance to access their software so that you can keep your eyes on these numbers as well.

Considering the above, outsourcing makes sense for businesses that want to rely on professionals and focus on other parts of the business. However, you can use accounting software if you’re a start-up or have sufficient knowledge in this area.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top