Five signs your finance team could benefit from outsourcing accounting tasks in 2022
Outsourcing your finances is never an easy decision. Money is a sensitive area, and a little trepidation is perfectly understandable.
That said, outsourcing can be a huge help. Three quarters of accountants are in favour of outsourcing, and 61% of UK businesses are already outsourcing their payroll.
Here are five signs that 2022 might be the year to join them:
1. Your highly-skilled staff are spending time on repetitive, routine jobs
Employees working outside of their area of expertise will never be as effective as those doing what they are trained to do.
Performing more menial accounting jobs may be demoralising for some staff whose talents lie elsewhere. Other areas of your finance function will suffer as a result.
By hiring certain outside accountancy services you can free up your employees to focus on what they do best.
2. Payroll is routinely run at the last minute
A last-minute dash to complete payroll is a definite sign that something is wrong. Uncertainty around payroll will make employees stressed and anxious, which may affect the quality of their work.
Persistent problems might even cause them to lose faith in you as a business and seek a new job elsewhere.
An external accounting service will put a plan in place to ensure that payroll is always completed on time. Employees can relax, knowing that their wages are in safe hands.
3. You experience frequent payroll errors
Whether it’s the result of time pressure or a lack of expertise, payroll errors can be extremely costly, both financially and in terms of staff morale.
Payroll mistakes cost the average FTSE 100 company between £10 million and £30 million a year according to a report by PWC. Relatively speaking, the consequences can be just as serious for smaller businesses.
While you’re unlikely to lose millions of pounds, a single payroll error can cause a ripple effect of problems. Correcting the error will often take longer than the payroll process itself, and this will disrupt business and keep employees from doing other jobs.
Outsourcing payroll shifts this risk away from your team, and dedicated experts are more likely to get it right the first time, anyway.
4. Your FD is bogged down with bookkeeping
A financial director should be focusing on the big picture. Getting bogged down in bookkeeping will distract them from their real job – developing a long-term financial strategy and steering the ship.
Neglecting this role can have serious ramifications. A company without a plan will struggle to cope with sudden changes and unforeseen events.
Hiring an external bookkeeper is one way to let your FD keep focused on their primary role.
5. You need more staff than you can afford to hire
If you find yourself perpetually short-staffed, it could be a sign that employees are not being used effectively.
Repetitive accountancy tasks may be taking up a big chunk of their day, leaving them unable to complete other jobs. Outsourcing accountancy removes this burden, freeing up multiple employees. This is often much cheaper than hiring new staff, giving you a practical way forward.
By helping your employees to make the most of their time, outsourcing accounting tasks can pay for itself many times over.
We have significant experience in supporting businesses with outsourced accountancy services. Give us a call to find out more.