Employee fraud can be a huge problem
Many businesses, small to medium-sized, like to keep a handle on their own finances and manage it themselves. This process can be appropriate for some firms, but opinions differ on how best to run the accountancy arm. Outsourcing accounting is a choice that can make good financial sense.
When thinking about outsourcing accounting it’s worth bearing in mind that business owners can save much more compared to employing a staff member to handle the department. There is, therefore, no need for training, equipment or even staff benefits, including health care and pension packages. More money can be ploughed back into the business.
Unfortunately for some companies, employee fraud is a huge problem which can negatively affect the business. Statistics show that smaller companies, those with fewer than 100 employees, are easily hit by fraudulent activity. Outsourcing can be a preventative measure.
Unless your chosen employee to deal with cash flow has the in-depth experience and training as an accountant, he or she is not likely to be the best person for the job. If accounting is outsourced to a firm such as https://www.mushroombiz.co.uk/homepage/services/accounting/, there will be more time to focus on business growth.
Accountants are familiar with taxes
Accountants have an inside knowledge of the profession and are familiar with taxes and legislation. They, therefore, have an understanding of how their client can benefit through tax savings, and this in return means more profit. If this is handled outside the company, there is no rush to file a return at the last minute.
According to Small Business companies should outsource where possible.
If the business grows, the accounts department will have to expand accordingly, and it can take a month to employ a new member of staff. The entire wait, once a range of factors has been taken into consideration, is up to 57 days, and that does not include time to familiarise him or her with the job.
With outsourced accounting services there is no need to spend money on software packages or training.
And above all, accountants can offer sound advice which is usually impartial, as well as peace of mind. They are a valuable external arm of the business and these eight points are essential to bear in mind when considering the move.