7 benefits of an outsourced bookkeeper

by | Oct 24, 2023

As businesses grow and evolve, so do accounting tasks and responsibilities.

Handling accounting may seem simple at first, but many business owners discover that it becomes intractable to handle alone alongside their other tasks and duties.

And when you begin hiring employees, accounting for VAT, etc, a professional bookkeeper’s services become indispensable.

Enter the outsourced bookkeeper, providing all the expertise and experience of an in-house bookkeeper but without the need to hire internally.

Here, we delve into the innumerable benefits of outsourcing your bookkeeping needs.

1. Increased efficiency

In today’s competitive business landscape, efficiency means trimming down time-consuming tasks and directing time and resources to where they have the most impact.

By outsourcing your bookkeeping, you integrate a system that succeeds in precision, timeliness and expertise.

Outsourced bookkeepers are proficient with the latest accounting tools and software, ensuring that your financial records are accurate but also reflective of the business, which is crucial for HMRC.

  • Faster turnaround: A bookkeeper’s expertise generates financial reports promptly, allowing businesses to make informed decisions swiftly.
  • Real-time insights: With up-to-date records, businesses can get a clear snapshot of their financial health, aiding in proactive decision-making.
  • Minimised errors: Streamlined processes mean that every financial entry, deduction, or addition is purposeful, reducing the chances of repetitive or unnecessary data.

2. Flexibility and scalability

Business needs are ever-evolving. Some months might see a surge in transactions, while others might be relatively calm.

An outsourced bookkeeper understands these fluctuations and offers services that can be tailored to demand. In-house bookkeepers don’t offer the same level of flexibility and scalability.

  • Cost-effective solutions: You’re billed for your needed services, ensuring optimal resource allocation.
  • Seamless expansion: As your business scales, there’s no need for a separate overhaul of the bookkeeping system. The existing setup expands to accommodate growth.
  • Managed costs: In periods of reduced activity, services can be adjusted, ensuring you’re not overspending.

3. Access to a range of services and expertise

Outsourcing enables businesses to tap into excellent financial knowledge and expertise.

Also, many outsourced bookkeeping firms offer packages catering to various specialist tasks, such as VAT accounting, which could be otherwise tricky to handle in-house with a single bookkeeper.

  • Tax-saving insights: Outsourced bookkeepers can offer strategies to optimise tax savings.
  • Strategic financial planning: Their expertise extends to advising on cashflow management and supporting businesses to remain liquid and financially healthy.
  • Regulatory compliance: Bookkeepers help ensure that all financial dealings adhere to the latest regulations.

4. Reduced risk of errors

Error-ridden tax returns are a surefire way to attract HMRC’s attention. Through a combination of experience, expertise and software, professional, outsourced bookkeepers reduce errors as close to nil as possible.

  • Accuracy is paramount: An outsourced bookkeeper’s primary goal is to ensure that every financial statement is error-free, reflecting the true state of the business.
  • Timely submissions: They ensure that all financial declarations, be it tax filings or other submissions, are made well within deadlines, avoiding late penalties.
  • Review and rectification: With a keen eye, bookkeepers offer an additional layer of scrutiny, ensuring that any potential discrepancies are identified and addressed promptly.

5. Cost savings with an outsourced bookkeeper

The financial outlay of in-house hiring can be substantial. Conversely, outsourcing offers flexibility and cost savings, both in terms of staff costs and payments for accounting software.

  • Elimination of recruitment and training: The hiring process can be both time-consuming and expensive. By outsourcing, you bypass these costs entirely.
  • Software savings: Modern bookkeeping requires advanced software, which can be pricey. Outsourced bookkeepers come equipped with their tools, saving you the investment.
  • Pay for what you use: Unlike a fixed salary, with outsourced services, you’re billed for the exact services used.

6. Focus on core business activities

As a business leader, your primary focus will be on steering the ship towards growth and innovation.

Getting bogged down by administrative tasks like bookkeeping can divert attention from business-critical activities.

Outsourcing helps business owners reclaim their time and refocus on what truly matters.

  • Prioritise growth: With bookkeeping off your plate, you can channel your energies towards product development, marketing, and other growth-centric activities.
  • Stress reduction: Wearing too many hats can be overwhelming. Outsourcing allows you to delegate, reducing mental loads for you and the team.
  • Informed decision-making: With professionals handling your books, you always have accurate financial data, enabling swift and informed decisions.

7. Enhanced data security

Data security is a top priority when it comes to sensitive financial information, which will also likely contain people’s personal identifiable information (PII).

Some financial data requires the highest level of protection to ensure compliance with privacy laws such as GDPR – which will be your responsibility if you handle it in-house.

A qualified outsourced bookkeeper will manage this on your behalf, using the latest accounting technology to ensure:

  • Robust data backup: With regular backups, the risk of data loss is minimised.
  • State-of-the-art encryption: Outsourced bookkeepers employ advanced encryption tools, ensuring that your financial data remains for your eyes only.
  • Up-to-date security: Regular software updates ensure that the latest security enhancements shield your data.

In summary

Outsourcing your bookkeeping can be a game-changer for businesses, cutting down costs and providing access to cutting-edge expertise and software.

It’s not just about keeping your accounts in order – it’s about leveraging industry best practices to drive efficiency, save costs and focus on what you do best.

With an outsourced bookkeeper, you’re gaining a strategic partner committed to your business’s financial health and growth – it’s a win-win choice to make.

At Cottons, we provide an extensive range of outsourced bookkeeping services, designed to simplify managing your financial records and support your business’s success. Get in touch to find out more.


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