A concept image of outsourcing

Small business: Gain competitive advantage through outsourcing

Outsourcing allows small business owners to optimise the use of resources and achieve maximum customer value.

A concept image of outsourcing
In today’s business ecosystem, small business owners are familiar with the concept of outsourcing, which is to use third parties to perform work that is normally done within a company, as the third parties can provide a better service at a lower cost.

At Tax Agility, we have a team that is dedicated to serving companies’ outsourcing needs in accounting and bookkeeping, as well as payroll. Over the years, we have built up strong relationships with our clients and witnessed the advantages of outsourcing brought to them. If you are a small business owner looking to outsource your bookkeeping and payroll, give us a call on 020 8108 0090.

The eight benefits of outsourcing

1. Lower costs

The true costs of hiring a full-time staff can be substantial once you add National Insurance, pensions, benefits, as well as office facilities and equipment which you need to provide for the person to work. Outsourcing is often a cheaper alternative.

2. Increase efficiency

Companies that focus on core competencies and outsource activities they aren’t good at tend to be lean and efficiently-managed. For example, if you rely on third parties who have the economy of scale to perform the same tasks inexpensively, you can pass the savings to your customers and remain competitive.

3. Improve flexibility

Outsourcing allows you to pick and choose the level of engagement that suits your business at a particular moment in time. For instance, you can select the bookkeeping service from us when you first launch your business, add payroll when your team expands, then engage our management consultancy service when you are ready to grow and take your business to new heights.

4. Access to specialists

Outsourcing allows small businesses to access the same level of expertise enjoyed by big companies. For instance, a small business may not afford to hire a full-time CFO, but by outsourcing and becoming our client, you now have a team of chartered accountants who are ready to assist.

5. Reduce risk

Our chartered accountants and payroll specialists help to reduce your financial and compliance risks by managing every task accurately, including sending the right documents to HMRC on time.

6. Not affected by staff holiday or sickness

The companies that you outsource the work to often have a big team that can provide year-round cover; therefore, your tasks and deadlines are not affected by staff holidays or sickness.

7. Increase confidentiality

Most offices today have an open-plan layout with limited storage space. Confidential data such as salary information may be left on a table or stored in an unlocked cabinet that can be accessed by all employees. When you outsource a business function that contains confidential data, you essentially increase confidentiality within your office.

8. Support your wellbeing

It is no secret that small business owners take on a lot, with some work so hard that they experience stress and anxiety. Outsourcing is a cost-effective way to help busy entrepreneurs reduce workload, giving them time to focus on their strengths and their mental wellbeing.

Five popular business functions to outsource

Small business owners tend to outsource niche business functions that require specialists who know what they are doing and can generally do the tasks cheaper and better. These functions include but not limited to:

  • IT support – covering network, wireless, cyber-security, database management, web development, and digital transformation.
  • Accounting & bookkeeping – from day-to-day bookkeeping to filing the right documents with HMRC and Companies House.
  • Marketing – evolving quickly, marketing today has a sharper focus on email, social media, video, search advertising, native content advertising, and apps.
  • Customer support – having first-level customer support that can provide quick answers to customers and keep them happy is valuable.
  • Payroll – every payslip in the UK must be calculated accurately and delivered on time, this complicated process is best left with the professionals.

Choose Tax Agility’s accounting and bookkeeping service

Tax Agility has worked with small businesses in London, Putney, and Richmond-upon-Thames since 2008. We have worked with entrepreneurs from all walks of life and different companies with varying business models.

Our accounting and bookkeeping services specific to small businesses cover everything from basic data entry to high-level management reporting and analysis. Accurate financial data that we provide, such as management accounts, budgets, cash-flow forecasts, can also help you to:

  • Improve profit margins
  • Reduce costs
  • Compare performance
  • Make informed decisions
  • Unlock business potential
  • Ensure regulatory compliance

Call us today on 020 8108 0090.

Choose Tax Agility’s payroll services

Payroll demands absolute accuracy, and each payslip must be calculated individually and delivered on time. Our payroll team has worked with all types of industries, including companies that offer commissions, ad-hoc bonuses, as well as restaurants, bars and hotels that use the TRONC scheme.

By outsourcing your payroll administration to us, you can keep your costs down while maintaining accuracy and efficiency. Our team also provides year-round covers, so your Full Payment Submission to HMRC is always on time, undisturbed by staff holidays or sickness.

Call us today on 020 8108 0090.

Other services

Apart from bookkeeping and payroll, we also provide tax and VAT services, along with management consultancy to small businesses across London.

Our aim is to assist entrepreneurs in becoming tax-efficient, so you have more money to invest, expand and create jobs in your community.

Management consultancy also puts a sharper focus on using financial data and benchmark analysis to improve efficiency, increase profitability and grow sustainably.

The challenges of outsourcing and how to address them

Outsourcing has indeed helped many small businesses to grow from strength to strength, but it is not without some challenges. It is useful to discuss a few tips that can help you navigate around common pitfalls.

Choose a reputable company

Only outsource your selected business functions to a reputable company that belongs to a trade organisation with a defined code of ethics. For example, we are ICAEW (Institute of Chartered Accountants in England and Wales) chartered accountants, and we follow a set of principles, including integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. This means that as our client, you will receive honest answers from our knowledgeable teams who keep abreast with the latest developments in practice, legislation and techniques. We also act diligently and respect confidentiality.

Formalise processes

Formalise a set of guidelines which you want the outsourced company to follow and communicate your expectations clearly. This way, you have greater control over the quality of services rendered.

Check their data security commitment

If the tasks you outsource involved confidential information, like customer information or personal data from your employees, ask the provider what steps they have to keep the data secure, and what happens if there is a breach.

Local versus overseas

Outsourcing to local companies may also work better for some businesses, as they don’t have to manage time differences and cultural barriers. At Tax Agility, our offices are in Central London, Putney and Richmond-upon-Thames, so clients could pop in to ask a question at any time, without having to worry about time differences.

Outsourcing has indeed helped many small businesses to scale, remain efficient and competitive, so are you ready to enjoy the benefits of outsourcing?

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This blog is a general summary. It should not replace professional advice tailored to your specific circumstance.

by Donovan