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.