15/6/2021 Advises About Outsourced BookkeepingTo have a strong grip over the market, you have to be more competitive. To stay competitive, you have to strategic things. Hence, it is always better to outsource accounts, bookkeeping, VAT and payroll to the most reputed, reliable and recognised bookkeeping outsourcing company. Before providing in-depth knowledge about bookkeeping outsourcing, we must know what bookkeeping is and how it helps an accounting firm. Accounting is the main pillar of any business and bookkeeping plays a major role in the business accounting process. Bookkeeping is preferred by many small or large scale businesses because it will help analyse companies' business performance. The financial records should be maintained properly for having correct track records for cash inflows and outflows. While doing bookkeeping, it is compulsory to accommodate correct information regarding transactions in the financial record as it will help in the correct analysis of business accounts. We need to understand certain points and keep in mind while outsourcing the bookkeeping related work. Also, we will be able to know the advantages of outsourcing the bookkeeping with the below points:
Doshi Outsourcing is providing the best outsourced bookkeeping services to clients with having dedicated experts who are always there for clients which help them in the smooth running of their business. They value the service and are always ready to deliver the best for their clients. 13/3/2021 Tips for Outsourcing Back Office WorkBefore going into detail about back office work outsourcing, it is a must that we should know, what is the importance of outsourcing and why it is required. If a business wants to grow in the market, it should come out with a strong strategy and proper execution of a plan. Outsourcing services is an efficient and accurate way of financial management, and it helps in analyzing the financial health of a company. Back office administration or Back office work will help the company to improve the quality, efficiency and cost structure of their financial operations. The outsourcing partners not only guide you but they will also help in providing financial reporting, financial planning, tax planning and advisory services. The higher work efficiency of outsourcing partners helps in the growth of accounting firms and it manages the entire workload efficiently. Sometimes accounting firms don’t get enough time to focus on their business growth as they will be fully equipped in accounting work. In such a situation, it is always a wise decision to take the help of an outsourcing partner and outsource the company’s accounts, payroll, VAT and bookkeeping so that the financial health of the company will get stabilized. It is good to utilize the opportunity of outsourcing as this will help in business growth and make the firm financially stronger. The following are the suggestions (tips) that will be useful while outsourcing the back-office work:
Outsourcing helps in delivering the services which the client expects. And it is important for the business in getting more clients, more profit and boosting the revenue. Outsourcing provides high-value services to clients which will help them in their business expansion. Accounting outsourcing companies provide high-quality services, which help many businesses in getting their work done in a timely and cost-effective manner. Outsourcing helps in the completion of work using standard technology, and it also ensures that projects should be delivered with high accuracy and precision. If you want to successfully run your business or if you are aiming for growth in the market, then it is always a wise decision to hire professional experts who will provide you best services in various fields. You will get various professional services like accounting, bookkeeping, taxation, etc. However, it is up to you to decide and select which kind of services you require for your business. Bookkeeping service is something which generally all the businesses opts for because it will help in analysing the business performance of companies. The financial records will be maintained properly for having correct track records for cash inflows and outflows. The transactions of the company are recorded, and it helps in the financial analysis of the company. Skills required for Virtual Bookkeeper and Bookkeeping Services: The virtual bookkeeper should have the following bookkeeping services skills and it includes:
All the above-mentioned points are basic details which professional bookkeeping services should have. As discussed earlier, bookkeeping service helps in tracking the records for cash inflow and outflow. It helps the management to utilize the resources in a well-planned manner. The systematic recording of financial transactions helps in understanding the position of the company in the market. The record of the financial transaction also helps in analysing the profit and loss of the company. The same information can be given to investors. The profit and loss detail helps the management to prepare the strategy in a well-planned manner and also helps in making wise business decisions for the company. COVID-19 pandemic having a global impact. It has not only affected individuals and families but also severely affected businesses and governments across the globe. There has been a steady rise in cases and the death toll worldwide. As the pandemic still rages on, the hence complete and exact impact on businesses is still not known. Whether small or big, every firm has been affected one way or the other by covid-19. Businesses in the UK have not been untouched by this, mainly small to mid-sized firms that have been greatly affected by this pandemic. Many businesses had to accept the British government’s support to continue trading or downsize their operations. Such pressing times call for a drastic change in the way the business itself carried on. Businesses may have to re-work their business model altogether and tap into new opportunities wherever possible. One of the best ways to weather this storm is to reduce the overheads and outsource non-core activities within a business such as accounting to finance and accounting outsourcing firm and concentrate on one’s core operations and retain minimum manpower that is required to optimally carry out those core functions. Even functions such as HR, payroll, bookkeeping, etc. can all be outsourced to such accounts outsourcing firms who have the expertise and know that how to help you navigate successfully through this period of extreme difficulty. Let's look into the benefits of outsourcing finance and accounting services. Why Finance and Accounting services should be outsourced: Cost-saving: Saving every penny which has been earned becomes a top priority as businesses are losing clients, cutting costs, and trimming the workforce as well. One of the greatest impacts of COVID-19 has been on the well-being of the employees. Many have been laid off or have resigned voluntarily. They are also working from remote locations, and this has given rise to newer challenges such as absenteeism or low productivity. Outsourcing is the answer to these woes as accounting outsourcing will lead to a significant reduction in payroll costs and an increase in your profit. Even otherwise, with outsourced services, you don’t have to pay for the overhead cost, sick leaves, vacation, training, managing, and other employee benefits. Time-saving: Outsourcing will free up your time from attending to routine non-core aspects of your business. It can be wisely spent in meeting prospective clients, marketing and advertising your services more effectively, networking, and interacting with your clients. Finance and accounting outsourcing firm will free up your valuable time. It will allow you to focus on what is important to you and your business, such as strategic planning, which is essential for your success. Financial awareness: The pandemic has thrown out of gear the smooth functioning of many businesses or at least some functions of those businesses. But as a business, it becomes highly imperative for you and more so during this pandemic to be completely aware of your financial situation. You should be aware of the micro as well as the macro picture of your business to make quick and critical decisions for the smooth running of your business. By hiring the services of a reputed accounting outsourcing firm, you would have access to all kinds of information, including outstanding bills, payroll estimation, income information, and more. Technical expertise: One of the most important considerations while choosing an accounts outsourcing firm is its technical expertise. Its benefits have rarely been more evident than in the current scenario where there is a torrent of new laws, legislation, rules, and regulations. The unprecedented number of various rules, regulations, legislation, government support schemes, deferral schemes, etc. have all added to the already complex nature of the business landscape, and this has led to a lot of uncertainty among the business owners. This is where businesses can really on the decades of expertise of outsourced firms, which can accurately advise on the changing guidelines and new legislation. No company would want to consider its perspective on chances of liquidation, not being successful is something that is not appreciated by our psyche. That is why when insolvency comes knocking it becomes rather difficult for businesses to outsource insolvency work. When a company enters into an administration the owner obviously would begin to wonder as to which creditor is to be paid first. Are payments first to be made to your employees or to the HMRC or to a bank? The best approach to this would be to consider the hierarchy which goes roughly as follows:
In the United State when a company does get liquidated there is a particular order in which creditors are paid. The secured creditors, as well as bondholders (who are also secured), are given the first priority. After these debts are cleared attention is paid to the unsecured creditors such as suppliers, banks, and the employees of the company. Stockholders, unfortunately, are last in this line. In the UK the system is slightly more intricate but perhaps could be deemed more favourable depending upon your perspective. Doshi Outsourcing provides assistance with the same can is your ideal partner for insolvency outsourcing. To make matters clearer we’ve complied a factsheet on the ranking of creditors as far as payment goes when a company goes insolvent. An elaboration on the types of creditors is as follows:
What are Secured Creditors? The secured type of creditor is the safest as they are considered to be at the very top of the priority list. Entities like banks who are in procession of a floating or fixed charge over the business’ assets fall under this category. What are fixed charges? This deals with a particular asset which has been financed by a lender. This would include: (1) intangible assets (2) business premises (3) financed vehicles and machinery. Companies House registers the fixed charge and this has to be the first payment made after the insolvency practitioner’s fees have been cleared even in a member's voluntary liquidation. What are the floating charges? This actually deals with the assets of the other company which would include (1) fixtures and fittings (2) cash at the bank (3) book debts (4) plant and machinery that is unencumbered where no invoice with factoring agreement is present. Holders with floating charges are not secure creditors and so their payment follows after the preferential (employees etc) have been paid so they are much lower in the hierarchy. Thus, it is considered that their right over the company is legal and this right or right on the company’s property can extend from buildings to machinery, equipment, and even vehicles. That is why banks and such other sorts of lenders fall into this category. However, their payments are only sanctioned after the insolvency practitioner has first received payment of the fee. The Floating Charge type of Creditors This is slightly more complex than the others but there are plus points too as there is more flexibility present for both the company as well as the creditor. The creditor is left free to look at and administer the assets during the normal running of the business. The charge only comes in when there is the situation of insolvency coming in which is the actual crystalising event. Important to note here is that post the 15th of September 2003, around 50 per cent monies realised to the value of £10,000 need to be kept for the unsecured creditors of the company. Also, about 20% of monies between £10,000 and around £600,000 need to be paid to the unsecured creditors. The rest of the monies would go to whoever is holding the floating charge. Who are the Preferential Creditors? There were changes made to the insolvency protocol in around 2002. Due to the Enterprise Act, the HMRC no longer holds a position as a preferential creditor. It is now instead of an unsecured form of the creditor. This means that the collection of money will be less certain but at least the trade creditors will have a chance at receiving payment. Employees come under the category of preferential creditors and so whatever wages are unpaid or holiday pay is left pending can be cleared. The Unsecured Creditors As mentioned above, the HMRC is one such creditor. Thus, payments towards VAT, trade creditors, business rates, and even suppliers fall here. Important to note is that arrears claim and unpaid holiday pay too fall in this priority which is a bit dodgy as one expects these payments to be made with the wages. However, this in itself serves to illustrate why you need to have an expert guide you through the insolvency process. Those Unsecured Creditors who are connected primarily to the business Money borrowed from family members or from the director or an employee of the company that was on an unsecured basis. Also, the salaries of owners or company directors fall here. Finally, the Shareholders Unfortunately, these come last for their investments into the company were in understanding of the risks. Due to this, they do not have the right to make demands until those of the above all parties are met. How to ensure you pay the right creditor It can be difficult to stay compliant due to the intricacies of the administration process. For instance, though an employee is a preferential creditor, we saw above that holiday pay payments fall into the unsecured creditors' priority. Therefore who to pay and what to pay are tricky at their best. Thus, insolvency and its protocols are highly complex and it is best to have an expert see you through processes like a members voluntary liquidation where the shareholders themselves place a Liquidator to close a company that is solvent. Doshi Outsourcing can help you through the complexities of the members' voluntary liquidation process. Furthermore, having an expert at your side will also make you know what is in your rights as well as which creditors need to be paid first. In the modern era of globalisation and digitalisation, the world is shrinking day by day. This impact of the digital era can also be evident in the field of accounting and bookkeeping as more work is being outsourced. The main advantage of the outsourced bookkeeping solution is that effective and efficient services are exchange at a cost that is considerably cheaper than doing it in-house. Bookkeeping is the keeping or recording of the information data and financial transactions about a business. It is the well-maintained recording and organising of financial transactions. Bookkeeping service ensures that records of the individual financial transactions are accurate, up-to-date, and comprehensive. Initiating and managing firm professional accounting practices are essential for the growth of a business. Bookkeeping is a well-defined process that helps with the broader scope of accounting. It does not take more time for a new business owner to understand that accurate and up-to-date financial records play a significant part in the success of a business. At the same time, the daily tasks needed to manage these records often fall to the bottom of an owner’s to-do list of priorities. After all, business owners did not go into business to become bookkeepers, and the value of time spent on managing the books translates into a pretty expensive hourly rate. Hire a bookkeeper to handle the accounting tasks in-house for the business is one solution to the problem, but it is not always the most suitable solution. Here are a few good reasons to outsource bookkeeping:
Privacy: There are few things more secure in business than internal financial records. This information that an owner wants to keep private and safe. Finding someone you can trust to do the job well, stay with the company for a long, and manage confidentiality is not an easy task–especially when a local bookkeeper knows your financial health. Outsourcing to a virtual bookkeeper with strong client references can give peace of mind by removing the opportunity to have a member of their community in contact with their financial records. Scalability: Growing businesses often start with smaller requirements but rapidly grow to need a full suite of bookkeeping services. Hiring outsourced bookkeeping with controller oversight and a full-service offering allows the services to scale to requires, without having to hire or train additional staff. Maximize Your Resources: When business owners try to save money by doing their self bookkeeping or delegating it to another key employee, they are expending valuable time and energy that could be better used to grow the business. When outsourcing bookkeeping, they free themselves to spend their time doing what they do best. Key officials, office managers, and non-accounting personnel should not be spending their valuable time on the books. Recommend Doshi Outsourcing: Your finances are in safe hands with our dependable, flexible, and cost-effective online accountant and outsourced bookkeeping services. We utilize cloud-based accounting software to deliver fast, precise reports, and management information. You can free yourself from worrying about financial records, supervising accounts staff, and dealing with creditors and auditors as your outsourced bookkeeper will take care of that. We tailor small business accounting services to suit firms of all sizes. So, whether you need a part-time bookkeeper to handle your payroll or wish to outsource your complete accounting function, we can help. We offer flexible, cost-effective online accountants services and use compliant technology to minimize the chances of errors. Our dedicated team of bookkeepers will develop an in-depth understanding of your business to manage effectively daily bookkeeping tasks. Apart from cost-benefit, the other advantage is that the business or the firm that is outsourcing bookkeeping functions can divert the time that is saved by outsourcing bookkeeping (non-core business activity) towards improving the business’s core activities. Outsourcing invoice processing delivers significant value to the organizations and finance teams that require higher processing speed and accuracy whilst meeting budget constraints, compliance rules and regulations. Invoice processing traditionally has been a complex affair requiring a range of technology and process definition with complicated rules and regulations at different levels. This is no longer the case in the era of outsourcing financial services. Manually processing high volumes of paper invoices is an expensive and inefficient process. As another option to investing in automation software and hardware for an invoice, accounts payable departments can benefit from a fully outsourced invoicing service. In outsourced invoice processing, you can convert fixed overhead to a pay-on-demand ‘per invoice’ charge. Invoice processing plays a significant role in your business, as wrong invoices can have a great impact on your business and customer satisfaction. Your business can take advantage from better business operations with regular, timely and accurate invoice management. And above all invoice processing is one of the basic business requirements which takes place almost in every organization to maintain accounting records it is vital to focus on your invoice processing. Invoice processing helps your business due to the professional expertise which outsourcing service providers have on-board. They understand your needs and deliver you seamless services as they know that delayed payments not only impact your goodwill and market reputation but also result in long term profits. In today’s competitive era many small, medium and large organizations have found out the cost-effective methods for invoice processing which is outsourcing invoice processing where organizations hire expert accountants to manage their invoices and books. By choosing to do so there is a saving in expenses that you can use to enhance your business and improve your products. Apart from this, you can eliminate the need for paperwork and storage as all invoices get stored electronically and are easy to access online. There are certain benefits of outsourcing invoice processing service such as:
The service providers keep a close watch on every invoice that is entered in the system which in turn helps the clients to monitor the entire process on a real-time basis. And invoice process automation ensures that all invoices are date stamped at the time of receipt, so at any given point of time anyone can know the exact payable data, payment authorizes, and if there are any discrepancies in the amount and data payable.
If a lot of clients have got their billing address changed to that of the company whose service they use, where they receive invoices on their behalf. This is how clients save themselves from dealing with hundreds of invoices as the outsourcing firm handles this effectively and accurately.
As we all know wrong or inappropriate payments have a double impact. While fewer payments dent your impression, over payments would lead to a cash crunch. By outsourcing invoice processing you can eradicate all these possibilities and be assured that nothing will ever go wrong. So, we can say that invoice processing is one of the significant parts of accounts payable. By outsourcing we can avoid the issues of paper bulk, delayed payments, misleading and ineffective processing and we can increase business efficiency. As you expand into new markets, careful consideration of payroll and HR is critical for both a compliant and optimal setup of your business and employees. Every enterprise has to process a salary for its employees in an accurate and timely manner. And it’s not only salary, but it’s also preparing for the employees’ payrolls including contribution for social and health insurances, personal income tax and many other significant aspects. Whether you are a small business set up or a larger global organization that is looking for outsourcing your payroll services, it is likely to expect efficiency and ensure compliance to do the effective payroll to improve the business. While hiring payroll services it is expected that you are provided with good value support and cost-effective HR services. All employers with a significant number of employees know that payroll can take a huge amount of time that you hardly have and errors can lead to further delays and result in an unhappy staff. That’s the reason employers choose to hire Payroll Service Company and give the job off their hands to ensure that their staff members are paid, on time and appropriately. It is often seen that in most businesses, administrative and back-office activities such as payroll which are non-core functions of the business, people prefer to outsource. But while outsourcing there are few basic questions business owners want to be addressed such as is it worth and appropriate to outsource from the outsourced payroll providers? What do you gain from payroll outsourcing? As per the recent survey, more than 10 million businesses are outsourcing their payroll processing and tax responsibilities. Here are five core things to consider before hiring any payroll service:
With the help of a professional payroll service provider, it becomes very easy to handle payroll and you get all the time to expand your business. The idea of outsourcing financial projects isn't accepted by everyone. Many consider that it's going to leak their private, especially financial data online and put the corporate or organisation in danger. However, with the progress of the recent market, you require to update your thoughts as well. For little businesses, it might be known to outsource their financial projects. it'll help them shed the additional burden of pressure, especially the matter of maintaining the financial processes. Mandatory financial processes the businesses require to handle: There are several mandatory financial processes that nearly all the businesses require to maintain. They are:
Managing of these things might not appear easy to handle for somebody. In fact, if the corporate may be a smaller one, handling of these factors could also be tough enough. On the other side, if the tiny scale companies outsource their financial processes to a renowned financial service provider, the tasks like VAT return filing are going to be easier.
Businesses require to file VAT returns: VAT or Value Added Tax is typically imposed on all the products sold and purchased within the market. In fact, consistent with the present market surveys, filing the VAT returns is one among the foremost important tasks and so as to perform the work, many companies consider a consultation with the leading financial service providers. In order to outsource VAT return services, the businesses require to collaborate with the financial service providers. Certainly, the market leaders will inherit the consideration during this regard. However, if a corporation is found in a foreign area and needs to expand the business across the county only, it'll be known to find an area financial service provider. The local accounting and bookkeeping companies can well understand the thought of their local clients and take actions accordingly. However, as far because the VAT return cares, the businesses require to file them on a quarterly or yearly basis. a corporation either sells its goods within the market or provides services. In UK, the present VAT registration threshold is 85,000 GBP. a corporation must register VAT if the services provided by it cross that certain limit. Advanced accounting companies use several modern software systems to calculate the VAT returns. that's a beneficial aspect that little business should outsource VAT return services. The VAT return services depend upon certain factors:
Outsourcing the VAT returns will help a corporation seek direct help from the financial experts. instead of hiring those experts, outsourcing the task will ease the pressure and therefore the companies can properly consider their businesses. Doshi Outsourcing is a well-known accounts outsourcing firm that offers affordable VAT return filing services to small business in UK. Every CEO's and Business Owners have faced this once in a while whether to hire an Outsourcing Accounting Firm or to have in-house bookkeeping and accounting person/team to receive their financial statements every month. Although, with technology advancements traditional will not always prove you the best technique when it comes to managing your company’s financial standing. Being an entrepreneur, good financial tracking will always have a positive impact on the success of your business. Managing the flow of money in your business will affect cash flow and a few other important aspects. It's often seen, entrepreneurs/business owners don’t have the necessary professional training, which is why they lend up hiring outsourced accounting services for assistance. Its always better to have a professional working on your business finances. If the business owners start outsourcing the internal departments like accounting, payroll & other activities to outsourcing accounting companies, they can achieve immediate measurable improvements in their company’s cost, company's financial control systems, and administrative processes without making large capital investments. But the biggest advantage is toughest to be measured, which is the freedom of the entrepreneur to focus on important business operations without the hindrance of managing their daily activities like managing the financial administration. The team can focus more on enhancing the results rather than processing data. This kind of focus on operations will lead to better improvements that will further enhance the value and goodwill of your business. By hiring an outsourced Accounting Consultant, 1. You can pay attention to scaling up your business. 2. Outsourcing Accounting services will make ensure that you get adequate time to add value to your Clients by focusing on their services & needs. 3. You can plan various strategies to provide better product & services to your Clients. Better product & services will lead to happy Clients. Happy Clients will lead to better business prospects. These days, Clients are looking for businesses that offer them value for money, proper after-sales services & full attention to their needs. Companies need to focus more on these activities, rather than daily administrative tasks of their business. This can work out, only if the business owner hires the right Outsourcing Accounting Firm. For this, what a business owner should know while hiring an Outsourcing Accounting Firm? The important things you should know before taking this decision are: • The most essential feature to be considered before hiring Outsourced Accounting Services is their experience. You need to check whether the outsourced firm has accurate experience of the hired services. A well-experienced firm will know all the ways to anticipate the hurdles of the business & resolve it with their experience. • You should properly research & review about the Outsourcing Firm before hiring them. What is the market review, what is their current position & how many clients are working with them, what is the client review etc? You also need to check whether the firm is reliable. • There should be a proper agreement made regarding privacy & data security with the service provider. The hired firm should not make any decisions without you being in the loop. The hired party should always be accessible to you. • There are some firms, which provide additional services along with the accounting services, like VAT, filing taxes, providing consultancy for VAT etc. You may also check regarding the same before hiring Outsourcing Accounting Services. These types of firms can help you save a lot of your funds. • Finally, you should be clear about your requirements and the scope. After considering all the factors, you should make a decision that suits your business requirements and will assist you in focusing more on adding value to your Client. Outsourcing accounting services will lessen the burden and you can provide the right kind of services to your clients. |
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