It has often been a debate with small to medium sized businesses (SMEs) whether to outsource their finance function. Whilst we are still in the throes of the coronavirus pandemic, now maybe the perfect time to consider whether outsourcing is the right solution for your business.
The finance function is an incredibly important part of an SME business, from delivering vital reports to business owners to help make informed decisions, to providing real-time key performance data. The main purpose of the finance function is to provide up-to-date, real-time, relevant financial information whether that function is outsourced or retained in-house.
As your business has adapted and changed over the past few months, outsourcing may be a far better solution, here are a few reasons why:
Having an internal finance team to hand can be a considerable investment. You will more likely need an accountant who is qualified or at least part-qualified to support your business. You will also need to cover sickness and holiday. With outsourcing, you can have access to a fully qualified accountant as well as experienced bookkeepers who are engaged to carry out the tasks required. These can be done on a real-time basis and delivered to you at a fixed fee. Equally, when you’re looking to grow your company, you won’t need to go through the hiring process, as the outsourced services can easily be increased to your requirements.
Keeping up to date with tech:
Technology is moving at an alarming rate. There are apps for pretty much everything these days which makes streamlining your finance function a lot easier. By outsourcing to cloud accounting experts, you will not have to worry about keeping up to date with the latest apps available and training your internal team on any new software or updates. A good outsourcing partner will open up opportunities to make your finance function more efficient and provide solutions to any finance problems you experience. There are apps for pretty much everything these days including ones to streamline your finance function.
With an internal finance team there will be limitations to knowledge, especially if there is only one person involved. With outsourcing you will have a team of specialists available to provide the knowledge and support that goes way beyond day to day bookkeeping. Should you have complex tax questions or need to model your cashflow, a good outsourcing partner will be able to support you.
It can be a difficult decision to decide which path is right for your company. If you would like to know more about outsourcing your finance department and how much this can save your business please get in touch.
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