January 25, 2021
While keeping the books might not be a task one fancies doing oneself; if the cost attached to it starts seeming significant it would be no surprise to want to amend things a little or seek alternate options. A reduction in operating costs after all, would immediately help in bringing down expenses. In-house accounting would obviously be the more expensive version with having one dedicated employee for the task following suit. That being said, it is possible to have a manager to multi-task but how really effective would that be? It is this consideration that has made outhouse accounting services so attractive to business owners as a way to pay less and yet have the work efficiently and accurately done. Also, the additional bonus of having the figures crunched in correctly and in the correct places is that when self-assessment time comes around you would be paying what you actually owe instead of the little extra that sometimes does get paid in such situations.
Get billed by the hour
Small businesses in truth do no need a department that is dedicated solely to accounts. Sufficient workflow that can last throughout the month would of course in this case not be present even with a dedicated employee. Therefore, it does seem more prudent to have someone who can be billed on an hourly basis for the work instead of having someone do the multitasking.
What actually should be considered is not the cost of the accounting service as even having it done outhouse implies an expense. What should actually be noted is the savings that might not directly be associated at once with good accounting like the reduction in the amount of taxes that have to be paid due to proper tax planning.
HR functions and compliance
Penalties are obviously not something any business owner would welcome. But this would be a part of being non-compliant even unintentionally. Another aspect are questions related to HR posed by employees or payments and reclaims towards statutory payments. Having an individual working with you devoted solely to this task would be a good option but when it comes to the legislation one prefers an expert and hiring one to remain on your premises all the time would not actually be cost effective. Instead, you can choose to have your accounting work outsourced and when you do have sudden employment related questions cropping up all you have to do is give the person a ring.
Doshi Accountants provides multiple channels of communication. Clients can email or speak telephonically. For those who want face-to-face interactions, Skype and other applications are welcome. With PAYE tasks completed at £9 per hour and also emergency PAYE processing addressed within a span of 24 hours, it makes the whole accountancy process much smoother and less worrying.
Software – the tip of the iceberg?
When it comes to queries, accountancy software certainly won’t be able to assist because no matter how user-friendly it becomes one-point sticks – the software will process in accordance to what you feed into it. Accounting software does make the accounting process easier but it still does not do away with the requirement of an expert who has the experience and knowledge. If there are queries from employees or if holiday pay or some statutory payment has not been paid correctly, then there is a possibility of disputes or worse – an employment tribunal.
Employee queries regarding payroll need to be addressed and proper PAYE and NIC deducted. Due to the nature of things the right deductions of employee PAYE and NIC also affect the liability payments of the employer towards taxes. Taxes that have to be deducted can only be correct if the tax codes are correctly updated. When furlough was introduced, most employers were under the impression that claims could only be made after the end of April or at the earliest, in the middle of April.
Thus, it is difficult as a business owner to remain up-to-date with the legislation (just consider all the changes made to furlough). In the long run it is obvious that a penny saved while a pound spent is not really a strategy that can lead to future lasting gains. Whatever benefits an employer can reap from the HMRC or whatever benefits and savings a business owner can make in tax could lead to savings. But this can only be done when the accounts are filed correctly and one has an expert as a sounding board. When considered versus accountancy costs, a business owner surely stands to gain far more by having business accounts properly filed.
The size of the business is not a factor
Small business accountants are a requirement because the size of a business does not determine its requirement for proper accounting and bookkeeping. A penny saved is a penny earned but how you save that penny is what counts. It does make sense to invest in proper bookkeeping and tax planning and as a result save in the long term in taxes and also by being aware of the purchases and expenses in your business as then you will have the actual picture of your profits.
Outhouse – a cheaper option?
Doshi Accountants is one of the top 100 UK accountancy firms because of quality work delivered on time without any hidden fees. Instead of taking the stress of doing accounts by oneself or employing someone who frankly does not have the business acumen it does indeed make sense to invest wisely and pay money for something of value and that will benefit your business in the long run. Accounting costs can be lowered by opting for outhouse work and thus, small businesses can benefit from lower costs. In fact, accounting for start-ups too is recommended.