These days many UK practices are finding themselves stretched thin trying to provide basic ongoing accounting services in addition to keeping their operating costs to a minimum. They are looking for solutions which not only free up time and resources but also maintain or exceed their current standards of quality. One solution to this dilemma is by outsourcing bookkeeping services.
First and foremost, it’s important to note that even though you can outsource your bookkeeping it’s still a valuable and essential part of an efficient accounting practice. However, the advantages of outsourced bookkeeping far outweigh the drawbacks of having to maintain it in-house.
Bookkeeping can be profitable for accountants. However, handling bookkeeping in-house can be labour and time intensive. There are credit card receipts that need to be entered from the client’s credit card statement. There are bank reconciliation balances that need to balance to the penny. If you’ve spent time offering bookkeeping services, you probably know what we are talking about. It isn’t a good use of your time or your abilities. Instead, you could be providing higher value services, not reconciling bank statements or entering bills.
That being said, when you outsource your bookkeeping, you slash your in-house bookkeeping efforts to the minimum. Essentially, you just have to make sure that you have all of the info set up with the offshore bookkeeping team, and you can focus on direct client and supplier facing tasks such as collecting payments and paying suppliers.
When you offshore bookkeeping services, not only does it lower the processing cost, but it also saves on paying salaries and benefits to full-time or part-time bookkeepers in your practice. By outsourcing, you only pay for what you need, and when you need it. This allows you to be in greater control during busy and slow periods. By maintaining minimal bookkeeping staff, you also have zero-employee related overheads such as:
The money saved by outsourcing can be reinvested to grow the business even more.
By outsourcing your bookkeeping, you provide your clients with an improved service. Most outsourcing providers can turnaround daily bookkeeping within 1 day, weekly bookkeeping within 7 days, and monthly bookkeeping within the month. When you outsource, a greater amount of work gets done in a shorter timeframe. This reduces delays and improves customer satisfaction.
Plus, since your in-house team doesn’t spend their time on number crunching, they will be able to spend more time with clients, which obviously means more work from your new and existing clients.
Outsourcing is like any other industry, it’s regulated and competitive. Bookkeeping and accounting service providers have to constantly develop their abilities and certifications to remain a viable option in the market, so you can be assured you’re giving your accounting to a dependable and experienced individual. Which means you’re able to hire a professional with a greater degree of expertise at an affordable rate.
Focus on practice growth
What most business owners really want is to be able to focus their time and energy on the overall growth of their practice. They want to see it from a birds’ eye view to see all the possibilities and to focus on streamlining processes. This only occurs when the owner has time to sit back and review without getting bogged down with remedial tasks to oversee.
With administrative tasks like bookkeeping being outsourced, it allows you to focus your time and energy where you want to. Resources can be utilised to create the business plan, increase revenue, as well as, network and maintain relationships with current and new clientele.
The bottom-line when outsourcing bookkeeping
When choosing a bookkeeping outsourcing company, it pays to compare not only pricing, but service levels (turnaround time, accuracy, timeliness), and value added to your accountancy business as a whole. As a specialist outsourcing company with integrated accounting, bookkeeping, tax, and payroll services for UK accountants and bookkeepers, QXAS is your essential business partner in helping you make bookkeeping a truly profitable service for your practice.
My name is Vishal Kurani, the author of the QXAS blog and I appreciate you stopping by! I help accountants gain Accounts Outsourcing knowledge through my easy to follow blogs and guides. Download my free guide "The Accountants Guide to Making Payroll Profitable" to learn how to make payroll profitable for your accountancy practice.