As an entrepreneur, deciding to hand over your financial tasks to an external agency might seem daunting.

While the benefits are evident, there are always concerns about work quality, team communication or hidden expenses that cause hesitation.

Nevertheless, if your business is suffering due to a lack of the required skills and resources, it’s an issue that demands attention.

Here are some key indicators that it’s time to outsource:

Overburdened existing team

This is a clear sign that help is needed. But recruiting new permanent employees for your finance team could be pricey and may not be justifiable if the workload isn’t substantial enough.

Consider contracting an accounting firm instead. It’s generally more cost-effective and alleviates pressure on your existing staff.

This approach is particularly useful when the increased workload is temporary, as external services can be adjusted in line with your needs.

Frequently missed deadlines and errors

Juggling deadlines and other responsibilities is challenging, especially if your staff are focused on other urgent matters.

It might be time to seek external support if crucial finance department deadlines are routinely ignored because your staff are preoccupied.

Outsourcing ensures focused commitment to key tasks, like compliance, circumventing penalties or fines arising from overlooked deadlines and mitigating the ire of clients and suppliers.

Inability to focus on core business

If you find yourself constantly needing to support your finance team, you’re likely diverting time from supervising other crucial areas of your business or from exploring new prospects.

An outsourced finance team can manage routine operations, freeing you to concentrate on your core business priorities.

Insufficient resources to support business growth

If your business is expanding rapidly and your finance department is struggling to keep pace, it could hinder future growth.

Outsourcing offers a means to adjust your team size as per your business needs, avoiding the immediate expenses and hurdles of constant hiring.

Exorbitant recruitment costs

As recruitment costs soar and hiring becomes more challenging, you might need to augment your finance team but are apprehensive about its impact on your profit margins.

Outsourcing financial functions to an accounting service provider can be a more financially viable alternative, saving you from substantial recruitment expenses, national insurance, and pension contributions for new employees, as well as any potential HR administrative burden.

The decision to outsource is strategic, aimed at helping your business maximise resources, lessen the burden on your existing team, and maintain focus on core areas.

If you would like to learn more about outsourced accounting services, please get in touch by emailing or calling 01494 552100. 

This blog is for guidance only, professional advice should be obtained before acting on any information contained herein. The information was correct at the time of publishing 8 April 2024.

Posted in Blog news.