Accounting is the most important aspect of your business as based on it; you can establish and track your financial health and business efficiency. Irrespective of the size of a company, small or big, its prime motto is to be more profitable and legally compliant as well. For this, you need a team of skilled accountants who can boost the business process and help to maintain perpetual growth.

However, to have in-house trained and skilled accounting personnel in the UK can be very expensive. Further, selecting and recruiting an accountant could be a lengthy process as well. Therefore more and more businesses gradually prefer to outsource accounting services to the professional experienced service provider. The main advantages of having outsourced accounting services are that you save time to work on your areas of interest and it is very cost-effective.

Here are the key benefits of outsourcing accounting services:

1. Cost-effective

This is the most attractive reason why businesses outsource their accounting services. Now, you have several options to choose from and if you can decide smartly and go for a service provider based in a country with a lower exchange rate then you can reap more benefits. A perfect example is India where you do not have to compromise in terms of skills and qualities. You can avail service standards at par with what you get in the UK but at a fraction of cost. Here is a list of costs that you can save:
  • Zero recruitment Agency fees
  • Zero NI
  • Zero Pension
  • Zero Holiday pay etc.

2. Experienced and Skilled Accounting and Bookkeeping Personnel

Outsourced accounting services bring the source of getting adept professionals to handle your accounts and bookkeeping. This takes away the burden of recruiting staff and further training them according to your requirements. Further, there is no need for lengthy contracts or no arrangements to make when the staff goes on annual or sick leaves. All you have to do is choose the right business accounting outsourcing provider.

3. Latest Technology and Tools

In this age of digitization, everything is changing rapidly and accountancy is no exception. However, especially for small businesses, the changes in accounting software and tools call for additional costs. Therefore, small business accounting outsourcing can prove to be a great option to avail of the latest and updated accounting and other financial tools without incurring any costs.

4. Financial advice

When you opt for outsourced accounting services and also outsource tax returns to them then you get a pool of expert personnel who can guide you whenever the need arises for seeking financial advice. Generally, you need financial advice when you are setting up a business, ceasing or selling a business, thinking of making new investments, applying for loans, filing taxes or handling complicated tax issues and most importantly looking for growth and to build your business.

5. Tax Saving

For most business owners, this is a big concern. However, you can get rid of this, all you have to do is outsource tax returns to be processed by experts who can ensure that you pay the legal minimum tax whether it is Corporation tax, VAT, or Self-Assessment Tax.

6. Legal Compliance and No Penalties

This is one aspect, which is very difficult to look after for most business owners while they are busy in day to day business operations. Inaccurate accounts preparation and failure to meet HMRC and Companies House deadlines may result in penalties. Therefore, it is better to outsource accounting services and tax returns to professional service providers, who can ensure that your accounts are accurate and you are legally compliant.

7. Data Security

It is of immense importance that you keep your data secure. Now, with certain data security policies introduced in the UK, it has become mandatory for most businesses to keep comprehensive data. By outsourcing to a GDPR compliant service provider you can be assured that all your information and documents are kept in secure databases.

In the UK, for the most part, small businesses are considering outsourced accounting services and tax returns. Briefly, we can say that small business accounting outsourcing is getting popular because you can completely eliminate employee costs. Further, it is quite helpful in the event your staff goes on leave or on sick leave. An outsourcing service provider can fill that position virtually immediately saving you the cost and hassle. They can give you a dedicated team member, just like a remote worker sitting next to you would operate.