In-House Accounting vs Outsourcing
Whether you've just set up your recruitment agency or you're a seasoned talent scout, you probably find the back-office side of your business to be daunting. After all, a recruiter's forte is the ability to make a great elevator pitch and to match the best candidates to specific customer needs. Therefore, there's hardly any pitching to do in accounting and admin.
If it gets too much, there's always the option to work with professional accountants, who can be both in-house or off-site.
Common questions that arise from this would be: what are the benefits of outsourcing your accounting work versus keeping it all within the business? How do you know you're making the right choice? Is accounting outsourcing the most cost-effective choice for your business right now, or can you commit to setting up an accounting department?
Here are a few things to consider if you're torn between in-house and outsourced accounting services:
1) The Cost
If you're in two minds about hiring an accountant to work full-time, the salary might be the wake-up call you need. According to Prospects, a chartered accountant’s yearly income currently ranges from £40,000 to £84,500, and a hefty bonus might tip it into 6 figures. However, many accounting outsourcing UK firms charge a fraction of this price, have a wider scope of work, and offer a more diverse and comprehensive service package.
2) Quality Assurance
Being able to have face-to-face meetings with your accountant at a moment's notice is a tremendous advantage if you tend to have tight deadlines for the back-office. However, with COVID-19 restrictions being ever-changing, you might not have them at your beck and call.
There’s also the fact that the quality of their work may suffer if they lack the resources they need. When you switch to accounting outsourcing, you may be surprised to find that the quality of the work companies like TBOS can offer easily outweighs the convenience of having someone at the desk next to you.
3) Efficiency and Consistency
Employee turnover is a serious matter and a growing concern. According to Forbes, people across industries are re-evaluating their options following the pandemic. If your accountant leaves at short notice, your company can experience a loss of efficiency, which translates to the loss of business. The beauty of relying on outsourced accounting services is that you're not affected by any comings and goings within your own company. When you outsource to true professionals like TBOS, you're always guaranteed to have a team of reliable experts on call. This enables you to provide consistent services in turn.
4) Working Hours
Tight filing deadlines, payment backlogs, payroll software bugs, and online tax portal glitches don't care that your accountant works from 9 to 5. Additionally, if you want to avoid late filing penalties or payment delays, you might come to expect your accountant to work overtime.
One of the greatest benefits of outsourcing accounting work to companies, like TBOS, is that you'll always find someone to help outside working hours. Accounting outsourcing gives you the peace of mind that comes with knowing that urgent work is never deemed inconvenient or even shelved.
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To find out more about our specialist admin support and accountancy services for recruitment agencies, and how they can save you money on internal recruitment, please get in touch today.
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