Why Finance & Accounting Outsourcing For Start-ups and Small Businesses

It is not uncommon to see entrepreneurs strugglinggenerally opt for hiring an all-rounder to perform all the
with spreadsheets, outstanding payments &duties within their 'finance department'. This may work
invoicing issues, hiring admin staff and still spendingsometimes however for the most it does not provide
lengths of time dealing with Accounting &the effective and efficient support a good outsourcing
reporting issues.company can.
In today's hi-tech environment, businesses are generallyOne of my clients, a classic modern small business
very good at deciding which services to specialise inwith a turnover of circa £1million running in UK
and which to outsource. However, Finance &with its success owed to China and Google, had
Accounting support needs are often underestimatedemployed a part-time Accountant/Bookkeeper an
by small businesses. With the exception to Payrollall-rounder to support all the Finance & Accounting
which usually gets outsourced all the other functionsneeds. This model relied on one person and lacked
are either not fully performed or kept in-house at thechecks and balances and the benefits of specialised
mercy of unqualified staff.skills input for the business. As a result there was
This is mainly due to general lack of understandinginaccurate and untimely reporting, lack of compliance
within small enterprises of what Finance &and controls as well as communication issues. By
Accounting functions are and how they support theswitching to a finance outsourcing model, my client
business.was able to enjoy the benefits of a fully functioning
Big businesses benefit from a fully-running Financeaccounting department just like any big business and
department with dedicated Finance Directors, Financialhe also passed on the duty of care to the service
Controllers, Management Accountants, Accountsprovider.
Assistants for managing the more routine sales andConsidering there are 4.8 million small businesses in
purchase ledger tasks and Credit Controllers etc. SmallUK*, the inefficiencies within these businesses can
organisations can also benefit from having specialisedhave a huge impact on the economy as a whole.
skills in their pockets but due to small scale they