Generating and providing financial information is a fact of everyday business life but not all businesses are best placed to do it themselves in-house. For many, using an outsourced finance function provides several solutions in one go. Crucially, it frees up time for the business owners to focus on doing what they do best – running the business itself. Outsourcing also works well for owners who are remote from the business, for instance a UK subsidiary with an overseas parent.
Typically, an outsourced finance function is carried out by a firm of accountants which offers not only a wide skill set but also the professional accreditations and reassurance that the work will be done correctly.
What finance functions can the business outsource?
Some examples of functions a business could outsource include:
- Bookkeeping and VAT returns – from keeping basic books and records to providing lead figures for inclusion in the accounts, this is a classic and common function which can be easily delegated to an experienced professional
- Payroll processing – paying staff the correct salaries relies on a full working knowledge of payroll taxes, National Insurance, statutory pension contributions, sick/maternity/paternity/holiday pay and more (benefits in kind, P11D etc). With this area subject to frequent change, many businesses prefer to outsource the payroll function to a specialist
- Management accounts and key performance data – there are some serious benefits to using management accounts which are tailored to the needs of the business and report on almost anything measurable. An outsource finance function can produce information on sales trends, monitor cash flow and identify anomalies, all of which help the business run more efficiently
- Chief Financial Officer / Financial controller – roles can be outsourced, saving the need for costly and time-consuming recruitment
Advantages of outsourcing
As mentioned above, outsourcing frees up valuable time for the owners to focus on running the business instead of trying to keep on top of the ever-changing financial landscape.
The business pays for work done and delivered. There are no NI, sick/holiday/pension etc payment responsibilities. There are also no recruitment costs as the outsource finance function provides the necessary staff to do the work.
Other cost savings include lower office costs (as the work is carried out offsite), lower software and training costs.
The function is scalable with more specialists available if the job expands and there is no reliance on just one person – there is always someone able to pick up the work.
By outsourcing work to a reputable accounting practice, there will no limitations in knowledge and type of service on offer, ensuring all business needs can be met.
Local knowledge for owners which may not be familiar with UK legislation.
Curo offers an outsource finance function service for established and growing businesses. Please contact [email protected] or call 01527 558539 for more details about how we can help your business thrive.