With the end of the furlough scheme upon us and challenging times ahead for most businesses, it is a key time for business owners to be looking at more flexible working, investing in technology and ensuring they have the right approach to key business functions such as finance.
The COVID-19 pandemic has caused us all to make changes to our lives in ways that we couldn’t imagine a year ago. Those businesses that have been fortunate enough to be able to continue trading have been forced to leave their workplaces, embrace remote working and consider what changes are needed in their business post lock down. These include looking at current businesses processes and one key function that is often overlooked in favour of the glamour of front-line sales, is the back-office finance and accounting function.
Many small to medium sized businesses (SMEs) can’t afford to employ a full-time finance team but want the right advice to keep their financial affairs in order, to save money and to be compliant. Often the key finance roles are performed by multi-tasking employees and even business owners themselves, when really they need to focus on what they do best – running and growing their core business – rather than filing VAT returns.
Typically, outsourcing can be used to cover the three service elements below and if done successfully, can give complete peace of mind that this area of the business is being taken care of, enabling the right people to give more time and energy to the business itself:
- Basic Level Processing – Raising of sales invoices, posting of purchase invoices, payments and bank reconciliations.
- Financial Controller Role – VAT returns, month-end process, management accounts, and cash-flow management.
- Finance Director Advisory – Budgets and forecasting, KPI analysis, and strategic advice.
Why outsource your finance support?
Below are five key reasons why the outsourced accounting model may be hugely beneficial for your business at this time.
- Re-deploying key staff: Current ‘in house’ staff can be freed up from day-to-day accounting duties and re-deployed to focus on work that brings in more business or adds value to your customers.
- Expert advice: your business will have immediate access to qualified bookkeepers, accountants and business advisors, providing a team of people who, as well as keeping the day-to-day finances running efficiently, can provide strategic guidance, including assistance with cash-flow forecasting and ensuring that all available support for your business is accessed.
- Access to technology: many companies are not aware of all the applications available in the market and which ones are suitable for their business. These include the latest cloud-based packages and streamlining the data going into the accounting system and how this is accessed and worked on securely, when remote working.
- Flexibility and scalability: Outsourced accounting is incredibly flexible and can be used as a temporary or permanent option. Your business can benefit from a solution that is customised to your requirements. Whether your business is temporarily cutting costs or finds itself in a period of rapid growth, the financial and accounting processes can be scaled up and down as needed.
- Cost effective: With an outsourcing partner that is technologically savvy and focused on ensuring your accounting function runs as efficiently as possible, it is likely that with more automation of basic processes, fixed cost savings in respect of staff and space can be replaced with a flexible scalable alternative.
Would you like to know more?
We have over 20 years’ experience providing outsourced accounting services to owner managed businesses. Whether you come to us with a fixed plan of how you need us to help, want us to rip up your process manual and start again, or you have no idea what you need but just want to ‘get it right’, our experienced team have seen it all and will quickly become a key extension of your business.
If you would like to discuss how outsourcing could benefit your business, please get in touch with your usual Blick Rothenberg contact or one of the partners to the right.