For limited companies and SMEs, managing finances is a critical aspect of running a successful and growing business. One of the key decisions many businesses face is whether to outsource their accountancy services to an external firm or to employ an in-house accountant. Outsourcing offers several distinct advantages, especially for growing businesses.
Cost Efficiency
Outsourcing accountancy services can be more cost-effective than hiring a full-time in-house accountant. When you outsource, you only pay for the services you need, whether it’s monthly bookkeeping, quarterly tax filings, or annual financial statements. This can significantly reduce overhead costs, as there is no need to provide benefits, training, or office space for additional staff. MJ Kane Accountants, for example, offers flexible service packages tailored to your specific needs, ensuring you get the best value for your requirements from day one.
Access to Expertise
MJ Kane Accountants is an entire team of accountants which brings a wealth of knowledge and experience to the table. Our team of professionals stays updated with the latest tax laws, financial regulations, and best practices. More often than not, we have or are working with businesses just like yours. This level of expertise is often more comprehensive than what a single in-house accountant can provide. By outsourcing, businesses benefit from a broader range of skills and insights, helping you navigate complex financial landscapes more effectively, sharing tips and skills gained by the broad spectrum of clients we have.
Scalability and Flexibility
As a business grows, its financial management needs evolve. Outsourcing provides the flexibility to scale services up or down based on your current requirements. Whether you’re expanding operations, entering new markets, or facing seasonal fluctuations, an external accountancy firm like us, can adapt to these changes seamlessly. This scalability ensures that your financial management always aligns with your business size and goals without the need for constant hiring and training of new staff.
Focus on Core Business Activities
Outsourcing allows business owners and managers like you, to focus on core competencies rather than getting bogged down by financial management tasks. With MJ Kane Accountants handling your accounting needs, you can dedicate more time and resources to strategic activities that drive growth and profitability across your company. This leads to better overall business performance and efficiency.
So when should businesses consider In-House Accounting?
While outsourcing offers numerous advantages, there might come a point when a business needs a dedicated in-house accountant. This typically occurs when the complexity and volume of financial transactions become so significant that constant on-site presence is required. This can happen due to specific sectors, type of transactions per month or high level FMCG companies. Large enterprises with extensive financial operations might benefit from having an in-house team for real-time financial analysis and decision-making, but on average, our businesses will stay with us from having 1 to over 1,000 employees. A testament to our expertise and adaptability in the way we work with our clients.
The Ongoing Benefits of Outsourcing Accountancy
Even for larger businesses, outsourcing certain functions can remain beneficial. Specialised tasks such as tax planning, audits, and compliance can still be effectively managed by external experts. Combining in-house capabilities with outsourced expertise often provides the best of both worlds and some of the larger or more specific businesses we work with who have in-house accountancy, still continue working with us.
In conclusion, outsourcing accountancy services to MJ Kane Accountants offers limited companies and SMEs cost efficiency, access to a broad range of expertise, scalability, and the ability to focus on core business activities. As businesses grow, these advantages can become even more significant, ensuring that financial management keeps pace with business expansion and complexity. While in-house accounting might become necessary for very large companies, outsourcing certain functions can always provide valuable support.
If your business is growing and you’d like to speak to our team about the advantages and personalised service we offer for our clients, please feel free to contact us.
