Outsourcing an accounting function can sometimes be a difficult decision for business owners to take, particularly for the smaller business as the initial focus is on the cost to the business. But what if you look at it the other way, and consider the benefits that outsourcing can bring?
So, to outsource or not? That is the question... or is it?
Maybe, as a business owner, thinking about some of the following could help you to decide
- By outsourcing this function, what will the business benefit be?
- Could the time normally used on accounting functions be better used on other business development activities?
- Does the business have the skills in-house to do these functions efficiently and cost effectively or would the money be better invested in outsourcing to someone with the skills and knoweledge that can complete the function in a more timely and cost effective way?
- Why does the business do the accounting function just becuase this is the way it has always been?
Whilst many accounting fuctions can traditionally be handled in-house, there can be many benefits for some buisnesses to outsource to a managed service provider. These benefits can include:
- Process accuracy and control
- Time and cost management
- Compliance risk management
- Dedicated point of contact
With the introduction of Making Tax Digital in 2019, any business that has a taxable turnover above the VAT threshold from 1 April 2019 must ensure they are VAT registered and join MTD from the first VAT period beginning on or after 1 April 2019.
Failing to join MTD when required could result in penalties being issued so it is important that business owners understand the requirements of MTD and how they impact their particular business.
At CavanaghKelly we have a team dedicated to providing a range of part-serviced or fully services book-keeping function, depending on your business needs.
Whilst every effort has been made by CavanaghKelly to ensure the accuracy of the information here, it cannot be guaranteed and neither CavanaghKelly nor any related entity shall have liability to any person who relies on the information herein. Information given here is for guidance only. Detailed professional advice should be taken before acting on any information contained herein. If having read the guidance here, you would like to discuss further; a member of our team would be pleased to help you.