The UK accountancy practices can attain profitability by availing of accounting outsourcing services. Let us understand how UK accounting firms become profitable when they opt for accounts outsourcing.
Profitability means cutting costs wherever possible and increasing revenue generation. In simple words in order to achieve profitability or maintain it for a longer period of time and gain a competitive edge, outsourcing accounting, bookkeeping, tax, audit etc. has somehow become important and unavoidable, given the fact that there is a dramatic shortage of accountants and even the existing (in-house) accountants are bearing the brunt of the accounting workload. According to one of the surveys, roughly two-thirds of UK accounting companies outsource their core services in order to retain profitability and a competitive edge in the accounting industry.
Profitability = Lower Expenses + More Earnings
According to a survey, more than 60% of the UK’s population is employed by small and medium-sized enterprises. Well, startups and SMEs are at risk due to the looming recession, plummeting GDP and great resignation, affecting profitability and productivity.
In the busy tax season, it is imperative for accounting firms tax preparers to understand the ripple effects of inflation, reduce cost and increase efficiency by taking immediate actions such as co-sourcing to meet the tax deadline.
If the UK accounting firms follow the above formula, then nothing can stop them to build themselves a profitable accounting firm in the UK. As we have seen earlier, to attain profitability accountants and accounting firms in the UK need to lower their expenses (cutting costs) or choose ways to increase their earnings or revenue generation.
Let us understand how a reliable outsourcing partner can help UK accounting firms and accountants cut costs and increase earnings one by one –
1. Cutting Costs
- No Hiring Cost
Whereas in-house accountants and bookkeepers can be exorbitant, off-shore accounts outsourcing partners can help you save money on hiring and training, infrastructure, accounting software licence, payroll, facilities and maintenance, and other overhead operating expenses like insurance of accountants and their remuneration. Minimizing training and management expenditures, such as software training and upgrades.
- Low Cost Accounts Outsourcing services
Labour in India costs half as much as it does in the UK making accounting work up to 60% more profitable.
- Scalability
The bulk of organisations’ profitability is being harmed by obvious inefficiencies. It takes work and dedication to keep a business running. However, outsourcing accounting enables you to gain profitability as it makes space for flexibility and scalability. The owner is not required to raise or decrease their in-house personnel based on work demands. (scalability). That also implies paying only for the services provided and nothing more, which is not possible if the workforce is hired in-house.
2. Increased Revenue Generation
Offer new services and make them chargeable – Enlarge or diversify your service portfolio by including advisory services for clients. This will help in keeping regular communication with existing as well as new clients. It will ensure better client engagement which in turn helps accounting firms in the UK build better, more credible and long-term relationships.
Once the accountants have formed a good bond with clients they can also start charging for their extra services. That would surely result in increasing the revenue from the existing clients as well as helping the UK accounting firms capture new clientele.
Well, there is no doubt that the increased number of UK accountancy practices are relying on outsourced accounting partners, however, profitability is one of the things that comes to the list of accountants. There are some other equally important aspects that are fulfilled when a UK accounting firm chooses accounts outsourcing partner.
Let us also go through other benefits that can be availed along with profitability.
Other Benefits of Accounting Outsourcing
Concentrate more on business, strategic plans, and objectives – With some extra time at hand, the accountants in the UK can be more innovative and think of better ways of revenue generation activities and forging great client relationships.
The regulatory compliances and deadlines are managed sans the stress as the workload is handled by the offshore expert accountants. Plus, UK accounting firms will get timely, accurate, and up-to-date financial statements and reports.
At the end of the day, a well-managed accounting firm would definitely mean happy clients and happy in-house accountants and that in turn would mean getting more work and increased productivity respectively and hence more profitability!!
Your Reliable co-sourcing partner AcoBloom
Accountants are at ease with AcoBloom and no longer need to work till the wee hours of the morning to be productive. Co-sourced accounting services help small and medium-sized UK accounting companies grow as a recession-coping technique.
Acobloom has been a prominent provider of accounting, bookkeeping, audit assistance, and tax co-sourcing services for over 14 years. Contact us at uk@acobloom.com to learn more about our team of devoted, qualified, and experienced specialists who can help you scale your business and deliver a smooth experience for your clients.