Businesses continue to be squeezed by the cost-of-living crisis in the UK, and while many have plans to expand, they are often curtailed by the cost restrictions of investing in new technology and hiring the right talent.
These pressures can be felt across many businesses, including within the essential finance functions of many businesses.
However, there is a solution to this unique challenge – outsourced accounting services.
To understand just how much using outsourcing could save your business, you first need to appreciate how these services are offered.
Most outsourced accounting practices work on two key engagement models. These models are a strategic set of guidelines that define the arrangements between an outsourcing provider and its client, which include:
- Their obligations and commitments
- The duration of the work arrangements
- The rights and responsibilities of each party.
These are typically agreed in an outsourcing contract, which outlines the regulations and terms and conditions of the relationship.
The flexibility of outsourced accounting
Each accountancy practice has diverse outsourcing requirements and will price its services based on the type of engagement models.
The two most common are:
- Full-Time Employee (FTE) Model – This mode, as the name suggests, provides a dedicated employee to a business at a fixed fee per month.
- Ad-hoc Model – If your requirements aren’t quite so fixed, then this model allows for varying workflows and will typically be charged at an hourly rate so that costs can be easily managed.
These are just two models commonly offered to many finance teams, but more bespoke arrangements can be reached depending on the requirements of the business.
When choosing to use the services of an outsourced accountancy team it is important to communicate your requirements to the firm you are working with so a suitable model of engagement can be reached.
If you would like an initial free consultation to find out how our Outsourced Accounting Services team can help your business, please get in touch by emailing enquiries@stca.co.uk 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 5 July 2023.