SMEs with One Employee Should Outsource Their Accounting and Bookkeeping

SAGE

According to SAGE, 500,000 new businesses are started in the UK every year, and three out of every four have just one employee. 99.9% of all enterprises in Britain are small businesses, which begs the question: who is taking care of the accounts within these businesses? A huge number of these businesses have just one employee, taking care of everything from sales to customer service, and with bookkeeping and accounts vital to the success of a business, they cannot possibly be given the attention that they need to be kept in order by this single person, who juggles so many other responsibilities.

Laurence Collins, Managing Director of Magic Accounts, a leading online accounting service for SMEs, says, “A staggering number of businesses in the UK have just one staff member, making it difficult for them to give their accounts the attention that they need. Rather than taking on an extra member of staff simply to take care of their tax returns and bookkeeping duties, the advice for small businesses is to outsource all accounting needs to a specialist provider on a part-time basis, allowing a professional to take care of everything from cash flow issues to VAT returns for a fixed monthly fee.”

Fixed-fee accounting services offer small businesses a great number of advantages. The first is the obvious benefit of having a qualified professional taking care of the accounts. They can provide in-depth reporting and statistics that perhaps wouldn’t be available if taking care of accounts personally, and those running the business have complete peace of mind that their financial status is being monitored by someone who thoroughly understands every process involved. Someone preoccupied with the day-to-day running of a business might find that they make errors or miss deadlines where accounts are concerned, but outsourcing to an expert ensures that accounts are delivered in a timely manner, with no mistakes or errors.

Allowing an online accounting service to take care of accounts also has the advantage of freeing up plenty of time for the business owners to focus fully on their business. Those who are spending a full day in every working week taking care of financial issues can find that they are not functioning at full productivity; by outsourcing to a professional accountant on a part-time basis, they free up this day to focus on their business, making more sales and hopefully expanding.  All the time spent on the phone to HMRC is suddenly freed up to focus on customer service and generating more sales, and the long hours spent poring over receipts and invoices can now be utilised more wisely.