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

It is not unusual to see business owners struggling with excel spreadsheets, excellent payments & invoicing problems, choosing administration team and still spending measures of your energy and energy dealing with accounting & reporting problems.

In today's hi-tech environment, businesses are usually very excellent at deciding which services to focus on and which to delegate. However, Finance & Accounting assistance needs are often overlooked by small businesses. With the exemption to Pay-roll which usually gets outsourcing all the other features are either not completely performed or kept in-house subject to not qualified team.

This is mainly due to general deficiency of knowledge within small company owners of what Finance & Accounting features are and how they assistance the business.

Big businesses advantage from a fully-running finance department with dedicated finance Administrators, Financial Remotes, Management Accounting firms, Accounts Staff for managing the more routine sales and purchase journal projects and Credit Remotes etc. Small organizations can also advantage from having specialized abilities in their pouches but due to small scale they usually opt for choosing an all-rounder to perform all the responsibilities within their 'finance department'. This may work sometimes however for the most it does not provide the efficient and effective assistance an excellent outsourcing company can.

One of my clients, a traditional modern small business with a revenues of circa £1million operating in UK with its success due to Chinese suppliers and Google, had employed a part-time Accountant/Bookkeeper an all-rounder to back up all the Finance & Accounting needs. This design trusted one person and was missing constraints and the advantages of specialized abilities feedback for the business. As a result there was incorrect and unfortunate confirming, deficiency of conformity and manages as well as interaction problems. By changing to a finance outsourcing design, my client was able to enjoy the advantages of a completely performing accounting division just like any big business and he also passed on the duty of care to the business.

Considering there are 4.8 million small businesses in UK*, the issues within these businesses can have a huge effect on the economy as a whole.