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[02.10.2019]

DNG Question Time – Why should I outsource?

Welcome to the first in our current series of blogs based on questions we are frequently asked by our clients. There will be five areas covered in the series. These will include payroll, Making Tax Digital and cloud accounting. Visit our blog and social media pages for the latest updates on business and accounting topics.

Q: Why should I pay someone else to keep my accounting records up to date or prepare the payroll, when I could do it myself?

Many business owners, particularly those starting a new business try to carry out as many tasks as possible themselves. These typically include making sales, dealing with customer issues and controlling production. They may also be preparing the payroll, doing the bookkeeping and even the VAT returns. An alternative is to outsource some of those tasks. Outsourcing is the act of obtaining goods or services by contract from an outside supplier.

Isn’t outsourcing just an extra cost?

You as a business owner may think of outsourcing as an additional cost and as a result will disregard the option of outsourcing any work. However outsourcing can result in cost savings. Instead of spending time preparing the payroll or the accounts you and the management team can focus on your areas of expertise. Having external input can give you independent advice on strengths and weaknesses and can identify cost savings and benefits which bookkeepers and internal accountants may not. Very often the value of outsourcing is not just in getting the task done it is also having access to expert advice.

Will outsourcing help me to spend more time on my business?

Yes. What could you do with the extra time gained from outsourcing tasks you used to do? You may choose to spend more time on the business focusing on your strategy. Or you may use the time to deal with important tasks that you can never find the time for.  You will have more time to meet new customers and explore new markets and services to enable you to grow your business.

By outsourcing all, or part, of your accounting functions, you can focus more on the strategic direction of the business. This includes its core activities enabling you to better service your customers. By working closely with you your accountant will better understand your objectives. They will help you will see more clearly how the business is performing. They can also provide expert help to put your strategy in place and help you work towards achieving your long term goals.

What else will outsourcing to the right provider give me?

You are also able to benefit from economies of scale and expertise from your outsourced advisor. Additionally, if you choose the right outsourced advisor, you will be able to take advantage and benefit from the latest methods of accounting and technological advancements in the accounting industry. These include powerful cloud based accounting and reporting applications. These applications are likely to be significantly cheaper and more suitable to your business than your current desktop software.

Click here for more information on the outsourcing services we provide at DNG Dove Naish LLP. Contact us to discuss your business needs further.

 

Andrew Picker

 

 

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