Accounting challenges facing the recruitment industryMarch 3, 2020
IR35 Postponed until April 2021March 23, 2020
- Ever-increasing accounting burdens of any accounting agency can move the focus from the business.
- They want an expert who helps them stay ahead of the game and abreast of the continuous financial and tax regulatory changes.
- Accounting agencies with an outsourced accounting partner tap into a dedicated and totally transparent resource that is available at very short notice without any long-term commitment.
Running any business is tough but when you work in an industry that has to be one of the most volatile and easily changeable around, the world of accounting, the challenges can be even harder and can easily appear at a moment’s notice.
Our industry’s constant pressures and many distractions make it hard for accounting agencies to even actually do their full-time job of accounting.
However, when you add in all the ever-increasing accounting burdens of any accounting agency such as invoicing, timesheet management and credit control, never mind tax and compliance, you can see why the focus can move from the client, candidate and of course billings.
So, what are the options?
There often comes a point where any conscientious accounting agency will make the decision to get help from the accounting experts.
They accept it is actually a full-time job and they need help to prevent breaching the strict compliance laws in our industry where even the most innocent mistake can result in financial penalties.
They want an expert who helps them stay ahead of the game and abreast of the continuous financial and tax regulatory changes. They want their accounting operations including tax, reporting, and payroll handled in the most accurate, compliant and efficient way possible.
But the big question is - do you go for an in-house accounting team or partner with an outsourced accounting partner who will become your in-house accounting team?
Well, there is no doubt that many accounting agencies automatically go for the in-house option as they believe it will offer them more flexibility and ultimately control.
Of course, this option can work but it will probably require more than one team member and it is vital to consider the impacts of employing staff.
The first question should always be can we find the best accounting talent to employ. After all, we know this is never easy as these candidates are specialised, highly in demand and expensive, especially when you need more than one.
Then we need to consider all the extra costs and practicalities of employing internal staff especially, all the ‘hidden’ costs such computers, software licences and the constant need to upgrade technology to ensure compliance, telephones, furniture and most importantly the physical space these people take away from your sales team.
Accounting agencies need to consider what happens to their in-house team during the quieter periods or risk wasting money on an in-house resource being under-utilized.
However, for most accounting agencies, the real decision maker is that internal accounting staff are ‘non-billers’ and their costs can soar, especially if there is a downturn in business or margins.
So, what’s the solution?
We believe, that it is always best for businesses to focus on what they and their team do best, and for accounting agencies, this is placing great candidates with great clients.
We believe, that accounting agencies that allow an outsourced accounting partner to manage all their accounting needs tap into a dedicated and totally transparent resource that is available at very short notice without any long-term commitment.
A resource that has the ability to organise themselves to protect your business and achieve the highest compliance standards so that you gain the ability to truly grow your business, at your pace.
Plus, the benefits of outsourced accounting and finance services
are more than just freeing up your time and include:
- You gain a team of experts - even if you can find the right in-house accounting accounting team, you still will only have access to a small team. By partnering with an outsourced accounting and finance services partner, their large team of highly experienced and qualified experts become your team who are simply one call or click away, 24/7 and 365 days of the year. If you were to employ these experts in-house you would need to employ as many as 2 - 4 new team members.
- You gain an ongoing stable team - often when you have an in-house resource, you have one person who can be doing everything from credit control, payments, invoicing, contracts and time sheets making it very difficult to cope if there is sickness or holidays. However, when you outsource, you have a whole team available to you who are experts in each field; offering you continuous peace of mind.
- You always remain ahead of the game - your outsourced accounting partner will stay abreast of any changes in legislation or compliance, so you always remain accountable and legal. Plus, they will add real value to your business as they will provide insights, solutions and best practice processes drawn from their years of experience gained from working with their many global clients.
- You gain flexibility and scalability - partnering with an outsourced accounting partner offers a business the opportunity to expand and grow at their own pace by having instant access to a dedicated team that can grow or reduce overnight.
- You gain access to the latest technology and infrastructure - your outsourced accounting and finance services will handle such large volumes of accounting work that they will always need to invest in the latest technology and infrastructure.
- Your compliance management will improve - your outsourced accounting partner will stay on top of HMRC legislation and regulations and all compliance demands, so you don’t have to, and they can help you manage and pre-empt risk.
- Cost reduction - the right outsourced accounting partner will help you reduce your accounting costs by up to 50% in a very short period of time, without compromising accuracy or quality.
We believe it’s simple - If you want to grow your business, then make the decision to outsource your accounting needs to the right outsourced accounting partner
IMS Decimal are world leaders in outsourced accounting and finance services solutions
for businesses throughout the accounting industry.
Our wide range of seamless and continuous accountancy services keep our client’s recruitment businesses flexible, scalable and at the cutting edge of technology and compliance, all whilst providing significant on-going cost savings.
You can be assured that by working with IMS Decimal you will be partnering with an accounting partner who constantly measures and monitors its own quality, accuracy and compliance, ensuring you always receive the best possible service.
To learn, how we can be the right partner you need, drop us an email at email@example.com