Why larger companies are increasing their outsourcing of financial management

Many smaller companies often outsource financial management. Sometimes this is out of necessity, as the functions are not available in-house, although with it comes a wide range of benefits that can also assist the company to go further. 

Today, more and more companies, especially larger ones, are turning to specialist Chartered Accountants to outsource their financial management. These companies see the benefits not only in cost savings, but in real added-value that outsourcing these functions bring to help their businesses flourish and grow.

Alexander & Co’s mission is to work closely with entrepreneurs to provide strategic business advice to assist their business, whether large or small, to grow. Below we discuss some of the key benefits outsourcing your financial management could bring to your company. 

If you are considering outsourcing your financial management to Alexander & Co, who has expert knowledge in this field, or would like advice on any other accountancy or tax issues, please do not hesitate to contact us.

How does outsourcing financial management benefit your company?

Reduce or control costs

Employing external experts can save you money. You will not have to employ permanent staff to fulfil these roles, nor invest in expensive hardware or continual training. These costs reductions mean that the capital saved can be invested in other core areas of your business, to help it expand.

Improved business focus on core functions

Outsourcing allows your business to focus on what it does best and focus on your core business activities. This allows staff to spend more time on their main tasks and the company to focus on strategy.

Capacity issues

Outsourcing can help make your business more flexible and resilient. It will be able to adapt quickly to changes in the marketplace, without the need to change staffing levels. This also provides cost savings and ensures that the level of service remains constant. 

Fraud prevention – reduce risk and avoid penalties

It can be very stressful with the amount of red tape and forms that need to be submitted to HMRC each year, not to mention time-consuming for company directors, even with in-house financial capabilities.

There are also risks involved with business finance, including money laundering and how staff members handle company money. With outsourcing to a firm of Chartered Accountants, you are placing your finances with an external company, so less involvement internally, which can keep your financial information more secure. You are also in safe hands, knowing that the industry is heavily regulated, minimising the risk of internal fraud and providing a clear audit trail. You can also be assured that all relevant tax returns and registrations will be done in a timely manner, so no late penalties or fines will be levied.

Increased efficiency

By employing a firm of Chartered Accountants that specialise in outsourced financial management, you are dealing with a team of experts who will be able to carry out the required work more efficiently. With cloud-based software and Making Tax Digital, it also means that when you do need to access information, much of it can be available at your fingertips, securely online.

Cash flow

Cash flow is one of the main reasons many companies go out of business. Outsourcing to a company that specialised in understanding financial management will increase efficiency, ensure all invoicing is carried out in a timely manner and any debtors are chased effectively. The skills and knowledge that accountancy firms, such as Alexander & Co have in this field will also add value by providing advice on forward managing key purchases and investments to best align with your company’s predicted cash flows. 

Gain access to expert business knowledge

Good Chartered Accountants today have become astute business advisors. You are tapping into a wealth of knowledge about how to structure your company, manage cash flow and advice on complicated tax issues. This knowledge is invaluable in maximising efficiencies and keeping (or making) your business profitable.

Accelerate business growth

One of the main reasons that more companies today outsource financial management, alongside cost efficiencies, is to plan for greater growth. Effective financial management can be the difference between a company’s success or failure and finance is plays a central role in all aspects of a business. Good accountants provide much more than advice on bookkeeping or payroll, they also provide specialist tax advice and can analyse your spreadsheets with a unique perspective, providing insights behind the numbers. This can include whether you can afford to hire new staff, what products have the highest margins and how to go about expanding into new areas or sectors.

How Alexander & Co can help you

Alexander & Co can take care of your financial outsourcing and will work with you to gain a full understanding of your company and its needs. Our outsourced financial management team do not treat each business the same, we understand that different companies must adhere to different regulatory requirements as well as requiring different levels of support. 

We are here to work with you as a team and provide you with the assistance that you require.

Our expertise in outsourced financial management includes the following:

• Bookkeeping – for both start-ups and established businesses
• Payroll services
• Preparing management accounts and information
• Preparing tax and VAT returns to ensure you meet all regulatory requirement deadlines
• Fundraising advice
• Preparing and advising on budget forecasts
• Helping you to set up or improve IT
• Implementation of business controls

Speak to one of our expert outsourced financial management accountants today on 0161 832 4841 to arrange for your free initial consultation in our Manchester city centre or London office.

Alternatively, complete our online contact form and one of our financial management outsourcing experts will be in touch shortly.