Very few businesses can survive and thrive without some sort of financial assistance. From accountants to finance assistants, there are all sorts of roles required within a business’ finance team – and it’s important not to cut costs in this important area. But with these professionals charging a high sum, maintaining your finance team can be a problem when it comes to your bottom line. Outsourcing, then, is often the answer: with contractors offering flexibility, they’re often a good shout. Here are some of the key finance function areas which you can consider outsourcing in order to save cash.
The monthly or weekly task of calculating employee pay, deducting the relevant tax and actually making the bank transfers can be an expensive and time-consuming one. Payroll staff have to do everything from work out individual pension contributions to issuing P45s and other documents, so there’s a lot to do. Hiring a team of people to work just for you on these jobs can quickly become expensive, but by bringing in a payroll company to do it, you can take advantage of economies of scale. They already have access to payroll software such as Sage, for example, so they can get all these jobs done without having to charge the earth.
Other than payroll, perhaps the most obvious and pressing function of your company’s finance team is to make sure that your regulatory obligations are met. Most British companies are Limited, which means they have all kinds of protection in the eyes of the law. But it also means they have to file a range of documents, including a confirmation statement with business goals and contact details. Getting some of these documents wrong can incur fines, too, so paying for a quality accounting service is essential.
Outsourcing, or at least to an extent, is often the answer, as it means the same service at lower costs. Accountants can also help with questions of ideal company structures and other occasional legal issues – and given that this is the sort of advice that’s not required every day of the week, having your accountant on hand but at distance is a smart move.
For many modern firms, meanwhile, the increasing use of contractors has muddied the waters a little when it comes to accountancy. Working out who is an employee on pay as you earn and who is a contractor can be a headache, especially since the imposition of the IR35 law which tightened up these definitions. Contractor accountancy teams are helpful in this scenario, as they have specialist knowledge of the latest case law to help you stay on track.
No matter what sort of business you run, it’s likely that your finance team is one of the most important you’ll have to maintain. Whether it’s your payroll staff or your accountancy desk, there are all sorts of people to think about – and paying all their wages can be pricey. Outsourcing, then, is a great idea – and as this article has shown, it’s possible to outsource all aspects of your finance team if that’s what works for you.