Category: Outsourcing

Things You Didn’t Know Your Accountant Could Do

Posted on | by Jessica Weston | Leave a Comment on Things You Didn’t Know Your Accountant Could Do

Did you know that your accountant could do more than just help you with your taxes? In fact, accountants can help you with a variety of tasks, including bookkeeping, financial planning, and even business consulting. If you’re not taking advantage of all the services your accountant has to offer, you’re missing out on valuable assistance and wasting money. 

Let’s take a look at six things that your accountant can do for you that you may not have considered until now.

#1 – Strategise

One of the most important things your accountant can do for you is help you plan for your business’ future. They can help you set financial goals, identify key performance indicators (KPIs) and create a strategy to improve the financial health of your business.

This is especially important if you’re thinking of expanding your business or making any major changes. Your accountant will be able to advise you on the best course of action to take and create a plan of action to ensure your success.

#2 – Cash Flow Management

Another important task your accountant can help you with is managing your business’s cash flow. They can help you track where your money is coming in and going out, identify any areas where you may be overspending, and provide advice on how to improve your cash flow situation.

This is vital for all businesses, but especially small businesses who may have limited resources. By keeping a close eye on your cash flow, you can avoid any financial problems down the road.

#3 – Debt Management

Not all debt is bad. In fact, some debt can be used to help your business grow. But it’s important to know how to manage your debt so that it doesn’t become a burden. That’s where your accountant comes in.

Your accountant can help you understand the different types of debt and their pros and cons, as well as develop a plan to pay off any debt you may have. They can also negotiate with creditors on your behalf and help you get better terms.

If you’re struggling with debt, your accountant can be a valuable ally.

#4 – Help with Loan Applications

If you’re thinking of applying for a loan, your accountant can help you with the process.

They can advise you on what type of loan would be best for your business and put together a package of financial statements and other documentation that lenders will require.

They can also help you understand the different terms and conditions of loans so that you can make the best decision for your business.

Applying for a loan can be a complicated and stressful process, but with the help of your accountant, it doesn’t have to be. A great accountant will prepare a strong pitch for your business to maximise your chances of success and help you to negotiate the best rates and terms possible, whilst ensuring that you understand exactly what you’re signing up for.

#5 – Increase Efficiency

Your accountant can help you to streamline your business operations and increase efficiency. They will take a close look at your current systems and procedures and make recommendations for improvements. This could include automating tasks, eliminating redundant processes, or improving communication between departments. In addition, they can help you to implement new technologies that will save you time and money.

By increasing efficiency, you can free up time and resources to focus on other areas of your business. This not only makes your business more profitable, but also more enjoyable to run.

#6 – Support You

Accountants are often thought of as primarily being number crunchers, but first and foremost, they’re actually great listeners who take the time to understand their clients’ individual pain points. This allows them to provide targeted support and advice that is tailored to each client’s specific needs.

In addition to providing expert advice, your accountant can also be a great sounding board for your ideas. They can help you to flesh out your plans, identify potential problems, and find creative solutions. And when things get tough, they’ll be there to lend a supportive ear.

Final Thoughts

At the end of the day, your accountant is more than just someone who does your taxes. They’re a valuable business partner who can help you to overcome challenges, grow your business, and achieve your goals. If you’re not taking advantage of all the services your accountant has to offer, you’re missing out on valuable assistance and support.

4 Bad Financial Habits That Are Hurting Your Business

Posted on | by Jessica Weston | Leave a Comment on 4 Bad Financial Habits That Are Hurting Your Business

Habits are everything.  From getting up early, to working out and eating healthy, habits are what differentiate successful people from others. The same applies in business – entrepreneurs who have good financial habits tend to make better decisions than those who lack them.

If you have poor financial habits, then your small business could be suffering as a result. What’s more is that many business owners aren’t even aware of the behaviours that are costing them money and  slowing their growth.

Let’s take a look at four bad financial habits that could be hurting your business:

#1 – Not Paying Attention to Expenses

One of the biggest killers of small businesses is neglecting to keep track of expenses. This often leads business owners to overspend on unnecessary items, or worse: not having enough money to cover necessary costs. The key to overcoming this habit is creating a budget, and sticking to it.

This will help you identify areas where you’re overspending, so that you can make the appropriate changes. For example, if your business spends too much on travel expenses, then consider having meetings via Skype or Google Hangouts instead of in-person whenever possible.

Working with an accountant is a great way to keep you accountable when it comes to  your finances. This person can help you create a budget, and  assist you with making financial decisions on behalf of your business.

Having someone who assures that things are done correctly is a lifesaver for many small businesses, especially those with little experience in managing their own finances.

#2 – Paying Too Much for Office Space

Another common mistake that business owners make is spending too much on office space. This can be a major issue, especially if your business isn’t generating a lot of revenue yet.

There are several ways to avoid overspending on office space. For starters, consider working from home until your business is more established. You could also look into renting  office space on a shared basis, or taking out a flexible contract with a coworking space. This means you won’t have to worry about forking out for furniture and equipment, and you’ll have the flexibility to pay for less space when things are slow.

#3 – A DIY Attitude

Doing everything yourself saves money, right?

Wrong.

Many small business owners try to do things on their own,  but this can be a huge waste of time and money. In some cases, you may end up doing more damage than good. This is especially true when it comes to financial matters – unless you’re an accountant or bookkeeper, there’s no reason for you to handle all  the financial tasks for your business.

Hiring professionals to help you with bookkeeping, accounting and other financial matters can save you a lot of time and money in the long run. Not only will you have more time to focus on what you’re truly good at, but you’ll also have peace of mind knowing that everything is being handled correctly.

#4 – Lax Invoicing and Billing Practices

Another bad financial habit that can hurt your business is lax invoicing and billing practices. This happens when you don’t send out invoices in a timely manner, or when you don’t follow up on unpaid bills.

Both of these things can lead to money being left on the table, which is obviously not ideal  for any small business.

To make sure that you don’t fall victim to this bad habit, it’s a good idea to create an invoicing and billing schedule. This ensures that your bills are sent out on time each month, without fail. It also helps you avoid forgetting about overdue bills, so that you can follow up with clients in a timely manner.

You may want to consider hiring an accountant or bookkeeper to help you with this task, as it’s something that can easily be overlooked by busy business owners. A simple mistake like forgetting to send out invoices on time could cost your business thousands of dollars each year – money that could have been spent on paying bills, marketing your business, or hiring new staff.

Final Thoughts

Make sure to avoid these bad financial habits if you want your business to succeed! Implementing a budget, working with professionals, and sending out invoices on time are all great ways to keep your finances in check. Remember that over time, good habits compound to  provide great results!

7 Benefits of Coworking Spaces for Online Businesses

Posted on | by Jessica Weston | Leave a Comment on 7 Benefits of Coworking Spaces for Online Businesses

Coworking spaces are becoming more and more popular as the number of remote workers continues to grow. However, what many people don’t realize is that coworking spaces offer a lot of benefits for entire online businesses, too. Let’s take a look at seven reasons why online businesses should consider coworking.

#1 – Better Value for Money

Coworking spaces often represent better value for money than renting your own shared office for businesses that can function remotely for a large portion of the time.

In addition to this, coworking spaces offer amenities like printing and meeting rooms that are not included in many private office memberships, and you can simply pay for the hours you use.

There’s also less up-front investment with a co-working space.  You can usually start by paying for a day or week pass, which gives you the opportunity to test out the space before signing up for a longer-term membership.

#2 – Community and Collaboration

In addition, coworking spaces offer a sense of community and collaboration that you don’t get when working from home. 

This can be extremely beneficial for online businesses who are looking to connect with other professionals and exchange ideas. 

Studies show that working from home has a negative impact on innovation across teams, so coworking spaces can be a great way to encourage creative thinking.

#3 – Scalability

Coworking spaces offer flexible month-to-month contracts, meaning that they can grow and shrink with your business. 

If you only need an extra desk for a month while you’re launching a new product, no problem. 

If your team is growing rapidly and you need more space, then you can scale up easily. 

Finally, if the time does come to move into a more permanent space, you won’t have to wait out a months-long contract beforehand.

#4 – Flexibility

In the wake of the pandemic, many businesses are adopting hybrid working, which is a mix of remote and in-office work. Coworking spaces are perfect for this style of working, because you can simply pay for the hours that you need the space. This means that you don’t end up renting an office that you’re only using for two or three days per week. 

#5 – A Better Work-Life Balance

One big downside of working from home is that it can make employees feel as though there’s no separation between work and personal life. This represents a major challenge for businesses that want to maintain a healthy work-life balance and keep morale high. However, coworking spaces can help because they allow employees to separate work and home life. 

#6 – An Attractive Workspace

Coworking spaces tend to be modern and carefully designed for optimum productivity.  This can be a major draw for online businesses who want their employees to feel inspired and motivated. 

At a coworking space, you get to access a beautiful office without forking out for expensive furniture and an interior designer.

#7 – Networking Opportunities

Many coworking spaces offer unique programming and events that can help connect with other professionals in your industry.  

There are often workshops and masterminds available, as well as social gatherings such as happy hours and dinners. This can be a great way to expand your network, get new ideas, and learn from others in your field.

Summary

If you’re an online business looking for a better way to work, then coworking spaces should definitely be on your radar. They offer many benefits that are perfect for remote workers and businesses of all sizes, and you can scale your usage as you grow. Much as businesses are replacing expensive hardware with cloud software subscriptions, many are also now opting for co-working spaces as an alternative to traditional offices.

5 Myths About Making Tax Digital Busted

Posted on | by Jessica Weston | Leave a Comment on 5 Myths About Making Tax Digital Busted

The UK government’s plans to make tax digital have been shrouded in controversy since they were first announced. There has been a lot of misinformation floating around, and many people are unsure about what the changes will mean for them. In this blog post, we will dispel some of the myths about making tax digital and give you the facts.

What’s Happening?

The Making Tax Digital (MTD) scheme rolled out in 2019 for VAT-registered businesses with over £85,000 in taxable income. In April 2024, this threshold will be reduced to £10,000.

There are many benefits to MTD, but many business owners are apprehensive about the change, fearing it will mean more stress, fear and penalties. Let’s take a look at some of the incorrect assumptions about MTD and talk about what the truth is instead…

#1 – HMRC Will See All of Your Data

This is a common misconception about MTD. The scheme does require quarterly updates but the amount of data you reveal to HMRC remains the same. With your VAT return, for example, you will still fill in the same nine fields of information but you will simply do it digitally.

Quarterly updates will actually encourage business owners to stay on top of their finances and give them a better insight into their cash flow.

#2 – You Will Pay More Tax

MTD is not about creating a heftier tax bill; it’s about reducing errors and fraud.  When businesses are able to submit accurate tax returns more quickly and easily, it minimises the chances of mistakes being made. This means that you are likely to pay the right amount of tax – no more, no less.

In addition, MTD will help to reduce the administrative burden on business owners, so everyone can focus on more important things.

#3 – Tax Returns Will Take Forever to Complete

This is another common misconception about MTD. The reality is that tax returns will take the same amount of time to complete – or quite possibly less. The main difference is that you will be doing them digitally instead of on paper. You won’t have to spend hours poring over your accounts – the software does all of the hard work for you.

This also means that there is less opportunity for human error, meaning your tax return will be more accurate.

#4 – MTD Means No More Tax Returns

MTD involves quarterly updates but this doesn’t mean that you won’t have to complete tax returns anymore.

The quarterly updates are in addition to your annual tax return – they are not a replacement for it. The SA100 form will be replaced with a final declaration, which HMRC will then review.

#5 – Small Businesses Don’t Need to Worry About MTD

Currently, businesses with a taxable income of under £85,000 per year are not required to participate in MTD, but this will change as the 2024-2025 tax year commences. This may seem far off now, but it’s best to take steps to prepare for the change now.

The truth is that all businesses need to be prepared for MTD, even if they don’t have to start complying with it until later on.

The sooner you start getting ready, the smoother the transition will be. This means it’s a good idea to begin digitising your accounting process and using MTD-compliant software so that you’re ahead of the game when 2024 rolls around.

Summary

There are a lot of misconceptions about Making Tax Digital, but the truth is that the scheme has many benefits. It reduces the chances of mistakes and fraud, and it makes tax returns easier to complete.

All businesses need to be prepared for MTD, even if they don’t have to start complying for another few years. The sooner you start getting ready, the smoother the transition will be.

4 Common Leadership Mistakes and How to Avoid Them

Posted on | by Jessica Weston | Leave a Comment on 4 Common Leadership Mistakes and How to Avoid Them

Being a leader is not always easy, but it’s part and parcel of being a business owner. You set the tone for the rest of the company, so it’s vital that you learn how to lead effectively. Let’s examine four common leadership mistakes and how to avoid them so that your small business stays on track for success.

#1 – Lacking a Clear Vision

As a leader, it’s crucial that you have a clear vision for your business. Without one, you and your employees will have no sense of direction. They’ll be stuck without a clear mission, and that can lead to low morale and reduced productivity.

Take the time to cultivate a clear vision for the future of your company.  What do you hope to achieve? What specific steps will your company take in the near future and beyond to ensure success? How does this vision align with a larger corporate mission or values, if necessary?

Once you’ve created a clear set of goals for your business, make sure that everyone on staff understands them. Hold regular meetings where employees can voice  concerns and ask questions about the vision. Over time, this dialogue will help your company grow quickly and adapt to changes in an ever-evolving market.

#2 – Avoiding Confrontation

Now, we’re not suggesting you go on the offensive just for the sake of it, but effective leaders simply cannot afford to be afraid of addressing issues and delivering constructive criticism.

As the head of your company, it’s up to you to guide employees and help them improve as needed. If they make mistakes, don’t be afraid to confront those failures directly and explain what needs to change in order for them – and consequently, your business – to succeed.

You don’t necessarily need to be aggressive with your employees, but you should never shy away from an honest discussion. When they understand what you expect of them, they’ll work even harder to meet those expectations and see that their actions have a direct impact on the company’s bottom line.

Avoiding conflict is not only unproductive; it can also be perceived as weak leadership by your employees. It’s also doing them a disservice by allowing problems to fester and denying them the opportunity to grow and improve.

Remember that you’re not just an employer; you’re also the captain of a ship. You need to communicate with everyone on board accordingly if you want them to act in accordance with their job responsibilities – and that means giving orders.

#3 – Failing to Delegate

Small business owners often feel as though they need to do everything themselves, but this only leads to inefficiency and burnout. As a leader, it’s important that you learn to delegate effectively.

Start by identifying the tasks and responsibilities best suited for each team member. You might not be able to trust certain employees with every job on your plate, but they may excel at one or two specific things when given proper training and support from management.

Then, look for ways to offload the work that you no longer have time for. This could include anything from delegating a specific project to hiring an outside contractor or consultant, depending on your company’s needs and budget.

Once these steps are in place, make sure everyone knows what they should be working on at all times – and hold them accountable for their performance. Make it clear that you expect the highest standards of work from everyone on staff.

When employees know their responsibilities and can meet your expectations, they’ll be more motivated to take initiative and go above and beyond when necessary – benefiting both them and your company’s bottom line.

#4 – Pride

Of course, you should have pride in your values, your mission and your company, but it doesn’t pay to be too proud as a leader – humility is an important quality.

When you make mistakes, own up to them and learn from your failures. Share what you’ve learned with the rest of your team – it will help everyone avoid similar pitfalls in the future.

Never let arrogance get in the way of an honest discussion about how things can be improved; doing so only hurts morale and makes it difficult for employees to  accept criticism.

Instead, be open to suggestions and listen carefully when your employees offer feedback, even if it’s not what you want to hear. Sometimes the best ideas come from unexpected places, so don’t miss an opportunity for growth due to stubbornness or pride.

Final Thoughts

Being a leader isn’t easy. In fact, it’s a constant journey of growth and self-improvement. As the captain of the ship, you need to communicate with everyone on board and make sure that all crew members know which direction you’re sailing in. Failing to delegate, avoiding conflict and becoming too prideful as a leader are all mistakes that can come back to haunt you, but if you avoid them from the start, your business stands a much better chance of success.

7 Ways to Save Time and Money with Cloud Accounting Software

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Cloud accounting software is becoming more and more popular, with many companies deciding to switch over. This type of software can really speed up and streamline your processes and give you a greater insight into your finances. In this article, we’re going to look at some of the ways that cloud accounting software can save you time and money.

1) Automated Invoicing

Cloud accounting software enables you to automate much of your invoicing process.  This means you can get invoices out faster, which helps to improve your cash flow. You’ll also have a digital record of all the information on an invoice, so it’s easier to keep track of who has paid and who hasn’t. Furthermore, your software will be able to calculate and add late fees for you and send automatic reminders to clients who are yet to cough up.

2) Better Cash Flow  Management

Managing cash flow is a vital part of running any business, but it can be difficult when you’re only using spreadsheets. With cloud accounting software, you’ll have access to much better tools for monitoring and assessing your company’s financial health. You’ll also save time because the automated invoicing features mentioned above mean you won’t have to waste hours chasing late-paying clients.

3) Expense Tracking

Another time saving feature of cloud accounting software is expense tracking. This feature enables you to keep track of all your expenses and log them into the system automatically. You can then compare your budget against your actual spending at any time so that you can see where money has been spent or saved.

4) Centralised Information

One of the best things about cloud accounting software is that it gives you a centralised view on all your accounts.  This is really helpful, especially for companies who have branches in different cities or countries around the world. All this information will be available to employees wherever they are and whenever they need it, meaning everyone can work more efficiently and make fewer mistakes.

5) Real-Time Reporting 

Another great benefit of cloud accounting software is real-time reporting.  This means that you’ll be able to access your reports and information whenever you need it, so if something crops up or a decision needs to be made quickly, it’s right there at your fingertips. This enables you to make sage and snappy decisions about the future of your business. 

6) Accessibility

Another benefit of cloud accounting software is accessibility. Thanks to cloud technology, you’ll be able to access all your accounts wherever and whenever you need to. Most major cloud accounting providers have mobile apps that enable employees to log expenses or update information whilst on the go.

7) Cloud Security

Finally, cloud accounting software provides you with more security than traditional desktop software does. All of your data is encrypted and backed up regularly so if something happens to one version of a file, there are always back-ups available which can be restored in mere minutes. You’ll have peace of mind knowing that your important data is safe and secure. Data breaches can cost businesses thousands – or even millions – of dollars, so this is a real advantage.

Conclusion

There are numerous benefits of cloud accounting software, and they impact your entire business. This technology gives you greater financial visibility and thus empowers you to take well-informed steps towards a stronger and more profitable business. Whether your business is well-established or just getting started, it will definitely benefit from the use of cloud accounting software.

6 Realistic and Practical Money Saving Tips and Ideas for Your Small Business

Posted on | by Jessica Weston | Leave a Comment on 6 Realistic and Practical Money Saving Tips and Ideas for Your Small Business

Saving just a small amount of money here and there can really boost the bottom line of your small business. If you’re tired of hearing abstract advice then read on for straightforward, practical tips to help cut down on costs and maximise your profit margins. 

1) Switch to PPC Advertising

Pay-per-click (or PPC) advertising is far more cost-effective than traditional ad campaigns because it allows you to target a more precise audience, helping you to squeeze more out of your marketing budget. You also only pay for the clicks you receive, rather than the number of impressions the ad gets, so this really helps maximise your ROI.

2) Outsource 

Outsourcing allows you to increase productivity whilst keeping employee costs low. For one thing, there are no pension contributions, sick leave or vacation time to worry about with freelancers or contractors. Furthermore, outsourcing more of your work allows you to convert fixed costs to variable costs, so you pay for the man hours you need in accordance with the volume of work. This makes it easier to save money during quiet periods. 

3) Negotiate with Vendors

A vendor’s named price isn’t necessarily the final word on what you will pay them. It’s always worth attempting to negotiate better prices, because you may end up saving yourself hundreds of pounds or dollars each month! 

4) Seek Cloud Based Solutions

Cloud based software can save you a significant amount of money by eliminating the need to purchase, maintain and upgrade expensive hardware. Cloud based software is also easily scalable and allows you to maintain organisational agility, and it’s a big space-saver, too. 

5) Go Remote

Telecommuting can be a huge money saver for businesses. When employees work from home, businesses instantly save money on utility bills, office supplies and even hand soap and toilet paper. By encouraging some employees to go fully remote, businesses can also move to smaller office premises and thus save even more money on rent and furniture. Alternatively, you could allow all employees to work flexibly and introduce “hot desking” rather than having a designated desk for every employee. In fact, research by Forbes found that by allowing staff to work remotely 50% of the time, companies saved an average of $11,000 per year per employee.

Furthermore, allowing remote working can allow you to get more out of your staff. There’s a wealth of evidence to suggest that remote workers are more productive. A study by Atlas Cloud found that remote workers put in an average of 26 extra days over the course of the year, which accounts for a whole months’ worth of added productivity at no extra cost to their employer. 

6) Hire Based on Mindset, Not Experience

You can train an employee up but it’s very difficult to fix a negative mindset. Hiring smart, eager-to-learn graduates is a great way to attract talent to your company whilst paying an entry-level salary. Furthermore, you won’t risk hiring employees who are set in their ways and you will be able to train your staff to do things exactly as you like them with minimal resistance.

Summary 

By employing these tips you can cut down on costs and boost your bottom line without making huge sacrifices that could reduce your output or antagonise your staff. Saving money for your small business is about finding smart solutions rather than hacking away at your budget, and these tips will help you to do just that.

How an Accountant Can Help Your Small Business to Succeed

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They say that behind every good business is a great accountant, and it’s true! A great accountant does far more than save you money on your tax return – although that certainly is an attractive benefit. Hiring a great accountant isn’t just about remaining compliant; it’s a big step towards improving the financial health of your business and can really help with planning for the future. Here’s how an accountant can help your small business to succeed.

Save Time

One of the most attractive benefits of hiring an accountant is the relief of not having to do it all yourself. Accounting is notoriously difficult and time-consuming – there’s a good reason why qualified accountants undergo so many years of training. A great accountant will save you many man hours and allow you to get back to growing your small business.

A Smaller Tax Bill

A great accountant won’t see you pay a penny more in tax than is strictly necessary. Many small business owners, despite their best efforts, end up missing out on tax deductions or incentives. The rules and regulations surrounding taxation are complex and ever-changing, so it’s best to have a qualified professional on your side who can help you to save you as much as possible.

Accurate Records

It’s important to maintain accurate financial records to ensure that mistakes don’t compound and spiral out of control. A great accountant will ensure that your records are impeccable so that you don’t end up with a tangled web of errors on your hands or worse, mistakes on your tax return that could come back to bite you.

Financial Planning and Stability

Cash flow can be very tricky to handle and it’s often difficult for business owners to get a clear picture of how much money is entering and leaving each month. An accountant will help you to manage your cash flow and ensure that there’s always enough in the bank to continue operations, even when times are tough. This helps to keep your business stable and running smoothly. You’ll be able to offer both your staff and your clients a consistent and positive experience, maintain high levels of trust and loyalty with both.

Furthermore, a great accountant helps you to plan for the future and make sage investments at the right time. They will use their financial acumen to help you to identify areas of improvement and plot for growth, so you’re not taking a shot in the dark.

Marketing

It may not seem obvious at first that an accountant would be able to help with marketing, but they may in fact be able to advise you on where to spend your money and which practices aren’t generating a worthwhile return on investment. This allows you to focus on the marketing activities that truly drive the needle for your business and cut back on areas that aren’t serving you. Furthermore, cash flow analysis can help you decide when to launch a new campaign and get a clear picture of the results.

Financing

Your accountant can help you to understand your financing options and weigh up the pros and cons of each. On top of this, they can help you to prepare the best possible case for potential lenders so that you get the best rates possible. All of this can be enormously helpful in terms of business growth. Furthermore, if you have existing debt, your accountant can help you to handle it in the most beneficial way possible for your business.

Summary

A great accountant is so much more than a number cruncher – they function as a partner and guide to help you make the best possible financial decisions for your business. Whether you’re in the startup phase or looking to grow your business, hiring a quality accountant is a decision you won’t regret.

4 Reasons Not to DIY Your Tax Return For Your Small Business

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As a small business owner, you may be used to taking the DIY approach. After all, you’re most likely a marketer, financial director, HR manager and payroll administrator, to name but a few of your many responsibilities. However, although your business may be small, there’s one area that really does call for professional help – and that’s filing your tax return. Let’s take a look at four of the main reasons you shouldn’t do your taxes yourself this season. 

1. You’re Not a Numbers Person 

We’d all like to believe that we’re good at absolutely everything, but the truth is that not everyone is good with numbers. If you don’t have an affinity for mathematics then doing your taxes yourself is probably not the best idea. 

Even if you’re competent enough at everyday calculations, taxes are a whole different ball game. Calculating your taxes is a very complex process; there’s a reason that accountants have to spend so many years in training. 

A simple mistake on your tax return can cause you to pay the wrong amount of tax and even result in harsh penalties that can seriously threaten your small business. It really isn’t worth the risk. 

2. It’s a Waste of Your Time

Taxes are notoriously time-consuming and as a busy business owner, your time is a precious resource that you can ill-afford to waste. After all, the time that you spend doing your taxes is time you can’t spend growing your business. It’s important to sit down and think about how much your time is actually worth before you squander it all trying to figure out your taxes. Think of time in the same way as you think of money, and learn to invest it wisely. 

3. Tax Laws Change Constantly 

Tax laws change all the time and it can be incredibly difficult to stay on top of all the latest rules and regulations – especially when you already have a business to run. When tax season rolls around, the chances are you won’t know about all of the latest changes which could lead to you making mistakes on your tax return or missing out on new opportunities to save money. 

It’s an accountant’s job to keep up to date on any changes and then take advantage of these opportunities to save you money, so that you pocket as much of your income as possible. Remember that a quality accountant will always save you more than their wages. 

4. The Internet is Full of Misinformation 

In this day and age, the DIY approach to any task usually involves several Google searches. The problem is that although the internet is a wonderful resource, it’s full of incorrect or outdated information. As discussed, tax laws and deductions change all the time, so the article you’re reading may no longer be accurate. Furthermore, tax rules vary hugely from country to country, so you might end up making a mistake because you read advice that doesn’t apply to your business. 

Sifting through all of this information and checking for veracity is a hugely time-consuming task, so you’re far better off working with a tax professional who has relevant experience within your specific industry. That way, you can have your questions immediately answered by someone who knows what they’re talking about and won’t have to waste time falling down Google rabbit holes. 

Summary 

The needs of every business are different, but if the above issues resonate with you then you should consider hiring an accountant when tax season rolls around. A great accountant is an investment in the financial health of your business, and will undoubtedly save you a significant amount of time, money and stress in the long run. 

Book a call with us today if you’d like to arrange for us to do your return…. https://calendly.com/sunnysideaccountancy/phone-meeting

Should You Outsource Your Accounting?

Posted on | by Jessica Weston | Leave a Comment on Should You Outsource Your Accounting?

It might be tempting to try and do the accounting yourself. But getting a team of experts could save you precious time and resources.

Some businesses have internal solutions for financial management. And in smaller companies, even the owners themselves can weigh in and tackle the task. 

Such an approach could work for the business for a while. But it might not be the best option, especially once the company starts growing.

To answer the titular question, it’s more ideal to outsource your accounting, or at least consider doing so. Here are the essential reasons why outsourcing might be a good idea.

Reason #1. Time Efficiency

Your team already has a list of responsibilities. If you don’t have a dedicated accounting team, your team will probably spend their precious work hours taking care of the financials as well. 

The time your team spends on accounting tasks means you get less time to focus on your company’s vital operations, such as improving sales or bringing in new leads.

Additionally, if neither you nor your employees are trained or experienced, dedicating company resources to such tasks can be considered wasteful. You’re diminishing your business capacity and distracting your team with a job outside their skill set instead of focusing on your strong points.

Outsourcing will save you time and get your financials in order sooner. Simply put, leave the accounting to the professionals.

Reason #2. Decreased Costs

If you consider hiring an employee solely for accounting, or you’ve already done that, notice that outsourcing could save you a significant amount of money. 

There are indications that companies hiring accountant agencies save around 40% of the costs compared to those that have in-house accounting. 

The calculation is very straightforward – by outsourcing your accounting, the only cost you have is the service price. On the other hand, keeping a full or part-time employee comes with additional expenses, not to mention taking away various resources better spent elsewhere.

Reason #3. Lesser Risk of Fraud

Small and medium-sized companies suffer significant losses due to employee fraud. 

Larger businesses have better control over their metrics, with dedicated departments that monitor all transactions. A small business will usually lack this kind of control, which results in a higher risk of fraud.

When you decide to outsource your accounting, your company gains access to an affordable CFO service that will have no problems detecting fraud signs. You can get an objective analysis of the financials as the accountant is entirely independent of your company.

Reason #4. Professional Service

Professional accountants have an obvious advantage in financial dealings – they know accounting. Your business will be in safe hands with using a service that’s well-familiar with all relevant codes and laws.

From a technical standpoint, an accounting agency will have every resource necessary to perform the job – from expert employees to the best accounting software. These resources won’t be available to your company without additional expenses and hefty time investment.

Finally, a professional accountant could offer you some useful, impartial advice that you couldn’t get from anyone other than an expert.

Focus on Business, Not on Accounting

Once the burden of accounting is lifted from your shoulders, you can expect work efficiency to improve in several ways. 

Outsourcing your accounting is cost-effective, saves time, and lets you focus on the more important matters where you and your team can be the most productive.