Five Ways Outsourcing Your Business Finances Can Benefit You

15 June 2024 - Lydia Brasted

Accounting for e-commerce businesses can be a minefield when it comes to compliance, but outsourcing your finance function can help with navigation of this. Lydia Brasted, Outsourcing Manager shares five ways that outsourced finance can benefit businesses.

Time Savings

E-commerce is a fast-growing area and as a result, the market is competitive. Directors and business owners can lose valuable time trying to navigate the intricacies of reconciling transactions to sales made via various platforms and this is the case even when the system setup is effective and efficient (think stock management systems integrated seamlessly with finance software). This time could be better used by concentrating on the operational side of the business and driving continued demand for products. Outsourcing your finance function can free up your time as a business owner to do just that, with all allocation and reconciliation completed by outsourcing professionals who can ensure that your financials are recorded in a timely manner.

Tax Compliance Support

In a lot of cases, sales are processed through multiple forums and in multiple currencies and import/export VAT can be difficult to understand if you’re not from a finance background. Using an outsourced finance service can help ensure that transactions are recorded in your finance system correctly in the first instance, meaning you can rely on a correct VAT return being prepared when the deadline comes around. Outsourcing providers will often have access to tax specialists who can provide in-depth information and advice surrounding your trading activities.

Cost Savings

An outsourced finance function can save you money when compared to the cost of an in-house finance team for a few reasons:

  1. Businesses will often be charged less for final accounts preparation if their accountant is completing the bookkeeping for them
  2. No need to train or arrange CPD for external finance providers, saving a business the ongoing cost of maintaining staff
  3. Businesses pay for the level of experience required at different rates. Compared to the annual salary of staff members required to complete the job in-house, there are often savings here


Scalable and Flexible

A major benefit of outsourcing your finance is that providers will grow with your business, providing a pick-and-mix of services to keep up with your evolving needs. In the first instance, a business may require bookkeeping and VAT services to keep the financial records up to date. This may evolve over time into a requirement for management reporting and support with budgets.

Flexibility is also another big benefit when your finance function is outsourced. Bookkeeping can be completed on a quarterly, monthly or weekly basis, depending on the need of the business at any point in time. This means the service provided always aligns with the needs of the business.

Better Understanding Of Cashflow

Cashflow can be hard to manage effectively within an e-commerce business as it can be hard to predict when sales will be made but is vital to making informed strategic decisions. An outsourcing provider can help with tracking and reporting cash flow to help make the best decisions for the business. This can be done to pre-agreed time frames to ensure that the information is at hand for whenever it’s needed.

To find out how our pick-and-mix outsourcing service could benefit your business at any stage of the business life cycle, get in touch with Lydia by calling 0330 058 6559 or emailing

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