Which is the benefits when outsource bookkeeping services - The Book-keepers Forum (UK)

outsourcingbookkeeping · Newbie

Which is the benefits when outsource bookkeeping services

Amy8n · Veteran Member

I would consider those points a feature of outsourcing bookkeeping rather than a benefit.

BackOfficeGroup · Guru

If all that is included in a fixed fee, then indeed it would be a benefit, but I think that whatever the client wants, they get (for a fee of course).

In outsourcing, the benefits would be not to have to employ staff for an accounts dept, ie credit control, payroll etc and not just the bookkeeping. Also I would expect the outsourcing company to provide assistance on projects within the company, as if they were the accounts dept. and to be able to help/advise on forecasting, cashflows, bank introductions etc

P

semsley · Guru

Outsourcing

Depends on what the company wishes to gain. Many small sole traders or small ltd companies do not want or need weekly/monthly/quarterly P&L and Bal sheet (many small business people do not even understand a balance sheet) so would not see this as a benefit. I think the benefit you stated would be more likely to appeal to a larger company which would have an accounts dept.

For smaller companies I would agree the benefits are as backoffice group intimated.

farmergiles · Veteran Member

semsley wrote:

Outsourcing

Depends on what the company wishes to gain. Many small sole traders or small ltd companies do not want or need weekly/monthly/quarterly P&L and Bal sheet (many small business people do not even understand a balance sheet) so would not see this as a benefit. I think the benefit you stated would be more likely to appeal to a larger company which would have an accounts dept.

For smaller companies I would agree the benefits are as backoffice group intimated.

I'm sorry but I have to dis agree with you there.
I think it is vitally important for small businesses to have these figures and an experienced person to explain them. Small businesses often run on a knife edge and need to know how they stand on a monthly basis, this way problems can be identified quickly. Their bankers also want to see that they have their finger on the pulse of the business.
I offer this service to my small businesses and my business bank manager can't understand why other bookkeepers and accountants don't offer the same service. Afterall, you are safe guarding your future income as well.

kjmcculloch · Guru

I would have to agree with Farmergiles here. I think there is a difference between getting someone else to do your bookkeeping because you understand your skills are better used growing your business and not having a clue about your figures.

The first is why we all exist, the second will lead to the businesses we work for being no more. If a business owner doesn't understand the figures I see it as part of the bookkeeper and/or accountants role to inform them. It's only with a working knowledge of these figures that they can make a truly informed decision.

Back to the main point though, Outsourcing. Outsourcing is a great thing, again it's why we're all here. But I agree with amy that what was origionally outlined by outsourcingbookkeeping are indeed features and not the benefits themselves.

The main benefits as far as I'm concerned are:

Saving on Recruitment costs
No lost time to sickness
No employment law to worry about
Accountability

Kris

semsley · Guru

farmergiles wrote:

semsley wrote:

Outsourcing

Depends on what the company wishes to gain. Many small sole traders or small ltd companies do not want or need weekly/monthly/quarterly P&L and Bal sheet (many small business people do not even understand a balance sheet) so would not see this as a benefit. I think the benefit you stated would be more likely to appeal to a larger company which would have an accounts dept.

For smaller companies I would agree the benefits are as backoffice group intimated.

I'm sorry but I have to dis agree with you there.
I think it is vitally important for small businesses to have these figures and an experienced person to explain them. Small businesses often run on a knife edge and need to know how they stand on a monthly basis, this way problems can be identified quickly. Their bankers also want to see that they have their finger on the pulse of the business.
I offer this service to my small businesses and my business bank manager can't understand why other bookkeepers and accountants don't offer the same service. Afterall, you are safe guarding your future income as well.

I didn't say the businesses didn't need to know how they stand, what I said was they didn't need a weekly/monthly/quarterly P & L and balance sheet. There's a subtle difference. Their financial situation can be explained to them in a way they understand and what is vitally important is a projected cashflow.

-- Edited by semsley on Thursday 5th of November 2009 11:58:48 AM

Jason Dormer · Member

The benefits of outsourced bookkeeping:

- Up to date correct and complete information
- Management reports
- VAT compliance
- Frees up time for business owners to concentrate on their business
- Protection against HMRC and new penalty regime
- Reduced accountants fees

Jason

-- Edited by Jason Dormer on Thursday 12th of November 2009 07:06:36 PM

rahul · Newbie

I agree with you these are the benefits of outsourcing the bookkeeping services but there is other benefits of it. I mention more benefits below

1. Allow Continuity and Scalability
2. Enhanced Data Security
3. Tech Efficiencies

Shamus · Forum Moderator & Expert

rahul wrote:
I agree with you these are the benefits of outsourcing the bookkeeping services but there is other benefits of it. I mention more benefits below

1. Allow Continuity and Scalability
2. Enhanced Data Security
3. Tech Efficiencies

Wow, ten year old thread... Even before my time on the site.

Just scan read it and I need to emphasise here that we are talking here about outsourcing, not offshoring.

Outsourcing bookkeeping and accounting to UK based professionals is a sound move allowing businesses to conentrate on making money.

Keeping it UK based keeps things responsive and avoids issues related to time differences, language barriers, personal service, etc.

Leger · Master Book-keeper

Shamus wrote:
Wow, ten year old thread... Even before my time on the site.

Hi Shaun

I would say it is probably the oldest thread that's been resurrected!

Sounds suspiciously like a VEIS post though don't you think?

Shamus · Forum Moderator & Expert

Leger wrote:
Shamus wrote:
Wow, ten year old thread... Even before my time on the site.
Hi Shaun
I would say it is probably the oldest thread that's been resurrected!
Sounds suspiciously like a VEIS post though don't you think?

I assure you that there is no need to worry in this instance John wink biggrin

cheers as always for the heads up though I agree, of all those resurected I think this one currently holds that dubious accolade.

All the best matey,

Shaun.

kayleycun · Newbie

maybe resurrected but offshore isn't different with outsourcing

Shamus · Forum Moderator & Expert

kayleycun wrote:
maybe resurrected but offshore isn't different with outsourcing

Personally I see zero point to offshoring where outsourcing does bring in additional temporary expertise.

If you have a situation where there is insufficient on shore outsourcing capacity for the amount of work there would be a point.

If it was substantially cheaper, there might be a point.

If the work was to a higher quality there could be a point.

If one needed teams working 24/7 with on and offshore resources, I could see a point.

But why offshore anything that can be done well at a reasonable price in the UK with the added benefit that the people can pick up the documentation, be there if things go wrong for clients. etc.

Offshoring did have its moment in the 1990's when the big consultancies got rid of indigenous workers from the firms that they worked with by sending their work offshore and indeed those same consultancies are still banging the same drum but companies now realise what they lost in losing so many dedicated on payroll workers and their is more resistance especially amongst mid sized entities not so easily swayed by the empty promises of management consultants.

For companies such as Wipro and Tata there is unlikely to be any serious hit on their profits as they work with the largest companies that demand 24*365 working so having cover 12 hours in the UK and 12 hours in India makes sense. But for smaller entities in India you may start to find it a closed shop with few companies using your services. A better idea may be to concentrate on looking inwards and servicing the Indian market ahead of your competition needing to do the same.

Of curse, with the consultancies now looking to use AI to replace accountants even the larger offshoring entities market may be on the verge of collapse. Maybe time to take a note out of China's book and start making stuff rather than assuming that this market will always be there... It won't.

Shaun.

kayleycun · Newbie

Outsourcing is where a third party service provider is engaged to provide a range of services in accordance with a pre-agreed service level agreement. Offshoring, on the other hand, is where an intermediary is involved who is based offshore and assists a client directly engage local staff. Whether offshoring or outsourcing is right for a particular business depends entirely upon what that business seeks to achieve through the engagement of its offshore labor. << Link Removed >>

-- Edited by Shamus on Tuesday 1st of September 2020 01:27:45 AM

Leger · Master Book-keeper

kayleycun wrote:
Outsourcing is where a third party service provider is engaged to provide a range of services in accordance with a pre-agreed service level agreement. Offshoring, on the other hand, is where an intermediary is involved who is based offshore and assists a client directly engage local staff. Whether offshoring or outsourcing is right for a particular business depends entirely upon what that business seeks to achieve through the engagement of its offshore labor. Thanks to ME BEING A SPAMMER

Fixed that for you Kayley.

joeanderson · Newbie

Hello! In my opinion, The bottom line is that by outsourcing your bookkeeping you'll save a lot of money on paying full-time or part-time wages and benefits to a bookkeeper or CPA. Further, you also save on lost productivity costs that come along with having to continually hire new people and put them on your payroll.

Best regards,
Joe

Leger · Master Book-keeper

The bottom line is know your audience. Can't see many peeps from the UK taking up your services.

BMM · Veteran Member

CPA. UK forum. US term/business offering services. For any potential clients reading this (joke) dont pick them. Their attention to detail is zero, not a good trait for a professional beancounter. For any bookkeepers reading this, learn this is not the way to do your marketing. Their attention to detail is zero.

mellicent · Newbie

The most important benefit of bookkeeping software is that such software will help you track your finances and your monthly expenses/incomes. It will allow you to keep an eye on your wallet and offer you a financial airbag which can be pretty useful in our days. Visit << UNAPPROVED LINK REMOVED >> if you are interested. I am sure you will find something interesting there.

Shabana · Newbie

Hi there,

Outsourcing bookkeeping services can bring significant benefits to companies of all sizes. The primary advantage of outsourcing bookkeeping services is that it allows businesses to focus on their core competencies while delegating non-core functions to external experts.

One of the key benefits of outsourcing bookkeeping services is that it can help reduce operating costs. By outsourcing, companies can eliminate the need to hire and train in-house bookkeeping staff, as well as the associated costs of providing office space and equipment. Additionally, outsourcing can also provide access to advanced bookkeeping software and technologies that may not be affordable for a small or medium-sized business.

Another significant advantage of outsourcing bookkeeping services is access to experienced professionals. Outsourcing firms specialize in bookkeeping services, and they employ professionals with expertise in the field. This can help ensure that companies receive high-quality and accurate bookkeeping services, which can ultimately lead to better decision-making and financial planning.

Outsourcing bookkeeping services can also provide a level of flexibility that is not available with in-house bookkeeping staff. Companies can adjust the level of services they require based on their business needs, which can help them better manage their finances and stay competitive in their industry.

In summary, outsourcing bookkeeping services can bring numerous benefits to businesses, including cost savings, access to experienced professionals, and greater flexibility. Companies should carefully consider their needs and evaluate the potential benefits before deciding whether to outsource their bookkeeping services.

Jack Nicklaus · Newbie

Outsourcing bookkeeping services can be beneficial for businesses of all sizes, as it allows them to focus on their core operations while a team of professionals takes care of their bookkeeping needs. The benefits you listed, such as weekly and monthly profit and loss accounts and balance sheets, comparison of incomes and expenses, and ratio analysis, are all important aspects of bookkeeping that can help businesses make informed financial decisions.
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hayes-accountants.co.uk/

ukoutbooks · Newbie

Outsourcing bookkeeping services can bring several benefits to a business, including:

Cost savings: Outsourcing bookkeeping services can be more cost-effective than hiring an in-house bookkeeper or accountant. This is because outsourcing firms can offer lower rates due to economies of scale, and businesses can save on the costs associated with employee benefits and training.

Time savings: Outsourcing bookkeeping services can free up time for business owners and managers to focus on core business activities such as sales, marketing, and product development.

Access to expertise: Outsourcing firms often have a team of qualified and experienced bookkeepers and accountants who can provide expert advice and support. This can help businesses to make informed financial decisions and manage their finances more efficiently.

Scalability: Outsourcing bookkeeping services can be particularly beneficial for small businesses or startups that may not have the resources to hire a full-time bookkeeper. As the business grows, the outsourcing firm can provide additional support as needed.

Reduced risk of errors: Professional bookkeeping firms typically have strict quality control measures in place to ensure accuracy and compliance with accounting standards. This can help to reduce the risk of errors and financial discrepancies that could potentially harm the business.

outbooks.co.uk/services/bookkeeping-services/

Kumartmm · Newbie

Outsourcing bookkeeping services can provide several benefits to businesses, including:

Cost savings: Outsourcing bookkeeping services can be a cost-effective solution compared to hiring an in-house bookkeeper or accountant. Outsourcing firms often have lower overhead costs, and businesses can avoid expenses related to payroll taxes, benefits, and training.

Time savings: Bookkeeping can be time-consuming, especially for small businesses or startups. Outsourcing allows business owners and managers to focus on core operations and strategic planning while leaving the bookkeeping tasks to professionals.

Expertise: Outsourcing firms often employ bookkeeping professionals who are experts in their field. These professionals have experience with various accounting software and can provide accurate and timely financial statements and reports.

Scalability: Outsourcing bookkeeping services allows businesses to scale up or down as needed, without the need to hire or lay off staff.

Improved accuracy: Professional bookkeepers are trained to identify errors and discrepancies in financial statements, reducing the risk of mistakes and ensuring compliance with accounting standards.

Better financial management: Outsourcing bookkeeping services can provide businesses with valuable insights into their financial performance, helping them make informed decisions and identify opportunities for growth.

Overall, outsourcing bookkeeping services can help businesses save time and money while ensuring accurate financial reporting and better financial management.

-- Edited by Kumartmm on Wednesday 10th of May 2023 11:58:36 AM

EmilyAnderson · Newbie

As Emily Anderson, a CPA offering Accounting Services, the benefits of outsourcing bookkeeping services are significant.

Firstly, it allows businesses to focus on their core operations and strategic growth, leaving the complex task of maintaining financial records to a team of experts.

Secondly, outsourcing helps reduce costs, as companies don't need to hire and train in-house bookkeepers, and can access specialized services on a pay-as-you-go basis.

Thirdly, it ensures accuracy and compliance, as professional CPA firms are well-versed in the latest accounting regulations and best practices.

Finally, outsourcing provides access to advanced accounting software and technologies, enhancing efficiency and data security. Overall, by utilizing CPA Accounting Services for outsourcing bookkeeping, businesses can streamline operations, save time and money, and benefit from accurate, reliable financial data.

No · Veteran Member

SPAMMER

Another dumb american.

Or spam bot.

UK Site.

For bookkeepers.

Know your audience.

olympic · Member

When thinking about the benefits of outsourcing bookkeeping services, here's what comes to mind:

Having weekly and monthly profit and loss accounts and balance sheets on hand provides a clear picture of your company's financial status. It's a helpful tool for tracking your income, expenses, assets, and liabilities, all crucial for making informed business decisions.

Comparing incomes and expenses over various timeframes (monthly, quarterly, or yearly) is incredibly valuable. It helps you spot trends and patterns in your financial performance, allowing you to seize opportunities for growth, cost savings, or addressing potential financial risks.

Understanding profit percentages and how they change over time is key to sustainable business growth. When you outsource bookkeeping, you gain access to professionals who can not only calculate profit percentages but also help you analyze trends, providing insights for optimizing your business strategy.

Ratio analysis goes beyond the basics, offering a deeper level of financial insight. It's a valuable tool for assessing liquidity, solvency, profitability, and more. Outsourcing bookkeeping services can provide you with the expertise needed to perform ratio analysis and interpret the results, helping you make sound financial decisions.

Outsourcing your bookkeeping can certainly simplify your financial management and provide you with the necessary data to make informed decisions for your business. It frees up your time to focus on your core operations while ensuring that your financial records are handled accurately and efficiently. Plus, with experts handling your books, you'll gain a deeper understanding of your company's financial performance, ultimately guiding you towards better financial management and business growth.

Shaun60 · Member

Why are you digging up a 2009 post? to preach to the converted? This is a site for bookkeepers yet you are responding as if you had an audience of business owners in front of you. The OP was clearly meaning offshoring, which has encouraged multi spammers. Either way a waste of time post. As No said above: know your audience.

-- Edited by Shaun60 on Monday 23rd of October 2023 01:39:26 PM

quickproadvisor · Newbie

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jamestoddandco · Newbie

Thanks for Sharing the Forum Discussion.

Outsourcing bookkeeping services can provide several benefits for businesses.

Cost Savings
Time-Saving
Scalability
Improved Accuracy and Compliance
Better Financial Insights
Continuity and Backup

Overall, outsourcing bookkeeping services can offer businesses a cost-effective, efficient, and reliable solution for managing their financial records.