Without a doubt – accounting is a core function in any business – big or small – a sound accounting team keeps day-to-day transactions running, ensures legal compliance, optimises cash flow and guides the company toward sustained profitability.
As growth happens, however, accounting teams often struggle to scale their internal finance functions to keep up with increasing business demands. This often leads to delays, errors and the stress of taking on more than the team can feasibly handle.
In this context, outsourcing the entire accounting function to a full-service accounting services provider can fill the gaps and propel profitable growth. Here, we offer a brief guide to why and how this can be a sound decision.
Why opting for full-service accounting services is beneficial
There are three main types of business-wide challenges that motivate the shift towards a full-service accounting provider, including:
1. The need for scalability
One of the significant advantages of outsourcing is that it allows businesses to scale up their finance department quickly without the hassle of hiring. This is ideal for those growing rapidly or looking to take advantage of new market opportunities.
Moreover, the outsourcing service can be customised to what the business needs. While some may want to outsource admin tasks like chasing clients for invoices and handling vendor communication, others may just need assistance with doing accounts.
The business can also choose to add on, pare down or modify the scope of the outsourced services as necessary, so the option is always easy on the pocket.
2. Lack of technical knowledge
Legislations change rapidly, and technology changes even faster. Keeping up with those may be hard for an already overworked internal finance team – which is where a full-service accounting services provider can help.
They are up to date on the latest changes and can also recommend ideal processes and systems based on your accounting goals.
3. Navigating risks and building resilience
Risks are an inevitable part of doing business, and not all can be calculated beforehand. Things like a core team member going on leave, onboarding a new supplier, difficulties finding the right talent, changing market conditions or simply the stress of handling multiple vendor/customer relationships can lead to bottlenecks that are often tricky.
With a full-service accounting services provider, your business can benefit from consistent processes and delivery methods, which not only relieve internal stress but also improve visibility on core data, thus enabling you to make decisions that enhance overall resilience for the next transformation or challenge.
Benefits of full-service accounting services for small businesses
Outsourcing has the most impact when it fulfils specific needs based on particular metrics. Here is what we recommend businesses do before they sign on with a full-service accounting service provider:
1. Understand what you want to achieve
Outsourcing your accounts does not just mean handing the reins over and stepping back. You must think about the chief problem areas you are currently dealing with:
- Are you looking to acquire a new company?
- Are you going through an organisational restructuring?
- Are you having cash flow issues owing to the recession?
- Have new laws in your industry impacted the way you operate?
- Have you recently entered a new market/launched a new product?
- Have your accounting requirements simply outgrown your existing team?
These situations have vastly different accounting needs – and will often determine which provider you work with, depending on their expertise. It is essential to think about the end goal when solving the problem rather than just finding a workaround for the problem alone.
2. Make yourself and the team available for communication
The initial few months ensure you and the full-service accounting services provider can work harmoniously. Signing them on is a change from the “business as usual” state, and it is in your team’s best interest to communicate clearly and often and provide any necessary information so that you can move back to business as usual at the earliest.
Typically, this involves sit-down discussions with your point of contact from the outsourced company, including accounting, operations, and sales heads in your business (i.e., the people directly in charge of delivery).
This builds mutual trust and gives the full-service accounting services provider context for where the business wants to go and what kinds of opportunities to look out for.
3. Make it measurable
You should be able to measure the impact the outsourced company is having. At the onset, agree on metrics to track and set check-in dates to assess whether the results are coming along as planned. This also gives them scope to make suggestions to improve performance, such as introducing a consolidated system that can study data from multiple functions (sales, HR, operations) and thus provide more granular insights on what is working.
How Birdfynn Accountants deliver full-service accounting services
By choosing us, you entrust us with crucial accounting, tax, and financial management duties and allow us to become an integral part of your business.
Our services go beyond the usual tasks and encompass administrative responsibilities such as following up with clients for invoices and liaising with vendors using an email ID provided by you, and training your staff on up-to-date accounting software.
Our comprehensive accounting services for UK businesses typically include cash flow forecasting, financial management reporting, daily bank account reconciliation, real-time accounting records updates, advising on subcontractor payment obligations, generating sales invoices, and holding regular meetings with directors for performance reports.
We consider ourselves an extension of your team and take this role seriously. To learn more about how we can help you, do not hesitate to contact Birdfynn Accountants.
