Whatever kind of business you have, it’s impossible to be good at everything.
If you’re running a small company from home, there are a lot of plates to keep spinning at any one time.
Particularly if you have just gone freelance or need to do your taxes for the very first time when previously you’ve been on PAYE, it’s worth considering outsourcing your finance and accountancy. Read on for some of the top reasons why.
1. Free up your time
Initially, it might seem like an unnecessary cost to outsource your finances. But remember, time is also currency when you’re running your own business. If you’re sinking hours into learning all the different rules and regulations for taxes for business, the legislation, and how to accurately complete the forms and declarations, then this is all valuable time. It might be better spent developing your business, marketing, and developing strategies for expanding your customer base. If you’re running a solo operation, you could easily end up dedicating a large proportion of your time to managing your finances when it would be better spent elsewhere.
2. Experts on hand
It might seem obvious, but accountants know accounting. When you look here for a team of accountants and financial advisors, it’s exactly their professional, expert opinions and advice that you pay for. They are paid to know the legislation backwards and will be aware of any changes in the regulations, tax codes, and can efficiently work to ensure you are accurate and up to date in every way that you need to be. They are also qualified to let you know where you can save money and if there are discrepancies in your books.
3. Time efficiency
If you are freelance or a sole trader, or even if you have a limited partnership, it just isn’t going to be cost-effective to have a permanent, full-time member of staff dedicated to your accounts. If you have recently joined the ranks of the freelancers, then you may have become aware of how time-consuming and difficult organising your taxes every year can be. If you have a limited company, then the rigmarole of hiring a member of staff, paying their pension contributions, holiday pay, sick pay, and all the other costs that having an additional employee incurs may be too much of a financial burden. The advantage of outsourcing finance is that they will be available when the workload increases (for example, when it’s time to do your tax return) and, when the workload diminishes you won’t need to pay for them as you would an employee.
4. Reduced fraud
Although fraud might not necessarily be the first thing on your mind when considering outsourcing your finances, it’s worth remembering that small to medium businesses are more likely to be targeted by fraud and malware attacks as they’re less likely to have the watertight defences of larger companies. An expert financial advisor will be able to thoroughly assess your books and spot any problems before they become serious.
Until next time,