Outsource finance admin, bookkeeping or accounting and you could find your business running more smoothly.
There is lots of support out there for business owners who need help managing their finances. From a day-to-day finance admin service to in-depth accountancy, there is a solution for every situation and every type of business.
In this blog, we look at the different levels of finance input available, and how to work out what’s right for you.
What outsourced roles are available to help with finance?
The finance administrator’s job is to raise invoices, answer queries and chase payments on a daily basis. They manage expenses, ensuring that outgoings like petrol, phone bills and coffee (!) all have their corresponding receipt so you can see where your money is going. Most finance administrators are familiar with accounting apps like Xero and Quickbooks. They can use these to generate reports so you can see your profit and loss at a glance. A finance administrator will also submit financial records to your accountant at regular points doing the year.
Unlike bookkeepers and accountants, finance administrators don’t usually hold formal qualifications. Instead, they’re usually highly organised people with a head for figures. They combine their natural abilities with experience to provide the finance help your business deserves.
A finance administrator is usually the cheapest option.
The roles of a bookkeeper and a finance admin overlap, and most businesses have one or other. However, the bookkeeper’s role is a little different from that of a finance admin. Bookkeepers have usually undergone specific finance training and may hold qualifications in bookkeeping. This means they can analyse figures as well as generating them, and can often contribute to decision making.
A bookkeeper’s hourly rate may be higher than that of a finance admin, because the bookkeeper holds more qualifications and responsibility.
Accountancy covers financial reporting and compliance, including tax, VAT and auditing. Accountants look at business finance in detail and check you’ve followed all the regulations you need to. Unless your business finance is complicated, you might only use accountancy services once a year.
Not all businesses need an accountant, particularly if your turnover is below the VAT threshold.
This is the most expensive option, but you might pay for it as a one-off service.
What type of business finance support do I need?
The first thing to say is that you don’t necessarily need any support in this area at all. If you’re confident keeping your books and reconciling your accounts, and your business is straightforward, carry on!
But if finance isn’t your forte, or you’re procrastinating about it because you secretly hate it, or you just don’t have time to do it, outsourcing financial admin is a good place to start.
If your business has straightforward income and outgoings, a finance administrator will probably be enough for your needs. But if you need more input and advice, having a bookkeeper play a regular part in your day-to-day business is a good idea.
If you have a high turnover, or your finances are complicated, it’s a good idea to engage an accountant. For example, if you are a charity and have to account for your spending, or your corporate social responsibility gives you tax breaks, you might need some more in-depth help.
Outsource financial admin
If you feel it’s time to outsource your financial admin or find a bookkeeper or accountant to work with you, Get Ahead are here to help. Our experienced regional directors can help you identify the right level of support, giving you the service you need and value for money too. Get in touch to find out more.
PS – we’ve put together an infographic on the key differences between a finance admin, bookkeeper and accountant – check it out here!