12 Ways Professional Bookkeeping Services Can Save Your Business Money

26 March 2024 - Lydia Brasted

Outsourcing to a professional bookkeeping services provider can reduce your business costs significantly. Lydia Brasted, Outsourcing Manager, explains how this can be cost savings or time savings, but both can benefit your business financially.

For most companies, outsourcing their bookkeeping services saves money due to the cost being lower than that of an in-house finance team. If companies also start to look at overheads incurred on top of the salary costs, for example to the cost of having enough office space to house staff or the cost of the electricity they use, outsourcing can reduce the cost to the business even further. This is because whilst outsourced finance providers charge for the level of experience involved, the cost to you will only be for time spent completing specific tasks. Due to the level of expertise the hours required will often be less than if the tasks were completed by in house staff.

Another benefit is that an outsourced finance partner will help you track HMRC deadlines and will work with you to make sure that the information submitted as part of your VAT return is complete and accurate. This can help you save money from fines and interest due to missing deadlines or completing submissions late as well as ensuring that should an investigation take place, the records you keep are complete. The added benefit is that you’re not under as much pressure to understand the intricacies of VAT legislation.

Because your records are being kept up-to- date in line with a timeline that suits you, outsourced bookkeeping services can allow you better control and tracking of your finances. Using reporting from Xero, you can receive reports on a regular basis which allow you to make the strategic decisions, as well as support you in the day to day. This can save you money as you have the ability to work within your means and make the best decisions based on the cash available.

Finance staff can be expensive to recruit and retain and dependent on the area you’re based in, you may end up hiring people at greater cost based on current demand for the job. This can be particularly difficult when people leave, and a replacement is required immediately. Outsourcing your bookkeeping services allows you to get the expertise you need without risk of continuity, if a bookkeeper leaves the business, another will fill their place with no impact on your business.

Accounting firms who provide bookkeeping services have access to up-to-date technology, including cloud-accounting solutions and are able to create a tailored package for you to fit the needs of your business. You may also find that they receive partnership discounts from software providers leading to a reduction in cost compared to obtaining it yourself. This can lead to reduced software cost as well as constant access to expertise on the systems and best practice.

Outsourcing your back-office functions to a bookkeeping provider will lead to better internal controls on you accounting data. Providers will have strict rules around processes, and this can lead to reduced risk of fraud and error. This can help you avoid costly investigations as well as reduce the risk of money being stolen from your business.

Using an outsourced bookkeeping service allows business owners to spend more of their time running the business and less completing administrative and accounting tasks. This time can instead be used to focus on running your business, controlling costs and making strategic decisions which can save your business money. This will also allow time to focus on decisions to grow the business moving forwards.

Regular changes to compliance requirements and regulations can be hard to keep up with. Outsourced bookkeepers will track these changes and ensure that your finance function is aligned with any updates. They use their expertise to ensure that records are up-to-date and meet the legal standards. This can save you from making costly mistakes or time spent learning the information which could be better spent elsewhere.

Outsourcing your bookkeeping can help you save money on your tax. They can help you plan to access any relevant rebates as well as help you plan for tax-efficiencies. Not only can they often advise on tax planning themselves, but  also have access to tax specialists in their day-to-day and can bring them onboard for anything more complicated.

As using a bookkeeping service is scalable, it can work around the changing needs of your business without the need for you to recruit internally, you’ll have continued access to the expertise you need. Adding extra hours to your bookkeeping service as well as other services provided by the wider business is possible as needed. One key service often provided is management reporting, which can be useful for tracking your progress as you grow.

Many bookkeeping providers will offer a discount on your final accounts preparation because you use their bookkeeping services. This is because they’re aware that the internal systems and processes will lead to less issues at year end than they may usually experience. The added benefit of this is that your bookkeeper can act as a mediator and assist with any queries which arise, keeping you out of the detail.

Outsourcing your bookkeeping can lead to better awareness and controls around your budget, which can help increase your profit, or show you areas where money can be saved. Through leveraging cloud software, bookkeepers can review each purchase or sale against a pre-determined budget to keep budget holders aware of what’s remaining throughout the year.

At Scrutton Bland we provide a scalable outsourced finance service, including bookkeeping, VAT returns and management accounting. Our packages are tailored to suit your business’s needs, using technology to give you a streamlined and accurate service. Contact us to discuss how we can help your business save time and money by calling 0330 058 6559.

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