How Much Does it Cost to Outsource Accounting Services in UK?
Outsourcing is among the most effective ways for accounting practices and accountants to grow quickly during periods of uncertainty and also introduce new services to their clients. Outsourcing allows firms to reduce their overheads and helps make their everyday processes more efficient and quicker. To gain these benefits and build capacity for their business, many accounting firms are looking to outsource accounting services across the UK.
One of the most frequent questions asked by accounting professionals is: What is the cost of outsourced accounting services?
To understand the way of accounting outsourcing firms price their services, it’s crucial to know their engagement strategies that define the fundamental elements of the outsourcing company.
WHAT IS AN ENGAGEMENT MODEL IN OUTSOURCING?
An engagement model is a set of guidelines that establishes the relationship between an outsourcing service provider and the client. It defines the duties and responsibilities of each company as well as the obligations they have and their commitments and the length of the relationship. The rules and conditions are recorded in an outsourcing agreement that both parties sign.
ENGAGEMENT MODELS FOR ACCOUNTING OUTSOURCING
Each accounting practice has its own distinct need for outsourcing. Leading accounting outsourcing companies thus, provide customized pricing for clients based on the specific needs of their clients.
This model offers greater control as you help plan and manage the work for each client while we track and report the status of each outsourced job
- Exclusive Staff
- Fixed Fee
- Better Budgeting
- To make sure that your off-site staff is utilized most effectively we recommend our accounting clients prepare the budgets and plan the work prior to outsourcing
- Need to add additional dedicated resource once work increases
Pay as you Go
This model is similar to the Dedicated Resource model where the dedicated staff is working exclusively on your tasks except only for a predefined period.
- Substitute staff available to fill in for employees on maternity leaves or vacation.
- There is no volume discount available on this model
- Fixed and agreed up charges and monthly fees, no surprises or hidden costs.
- Quicker turnaround times, similar to completing jobs on-site
- Scalable – easily ramp up resources without resorting to costly hiring or reduce resources without any severance costs
Block of Hours
You buy pre-paid blocks-of-hours (50, 100, 150) with an attractive volume-based discount. As hours are utilized, they are deducted from the total number purchased.
- Need to purchase more block of hours as work expands
- Recommended for big projects such as data migration
We will be treated as a dedicated back office for all your operational and processing needs. Fin-eX will charge a percentage of the invoice as agreed between both parties
- This model is good for small start-ups or clients with a diverse client portfolio
- Fee is based on invoice percentage
- Better revenue planning and what to charge the client
- Dedicated account manager who will be supervising the team to complete the tasks assigned
- Planning is done where the percentage is decided between both the parties and this helps in planning what to ultimately charge the client or a budget is set on how many man hours are required for a certain task.
What You Get With All The Models:
Test Fin-eX Outsourcing! We Give 10 Hours of no-obligation service!
Why? Because we are confident once you see our work, there is no going back.
We have a commendable track record, and we believe that given the opportunity, we can help you achieve a competitive advantage. We have what it takes to build a promising future by delivering exceptional service and support. We look forward to working with your prestigious organization.
- Progress Reporting
- Dedicated account manager
- Unlimited phone and email support
- No hiring or training hassles – we help screen, select, recruit and train accountants for you
- Trained accountants working exclusively for your firm leads to consistency and complete confidentiality.
THE TRUE COST OF HIRING ACCOUNTANTS IN-HOUSE
One of the leading indicators of an expanding accounting practice is staff employment. When you hire an employee, you have to pay monthly payments as salary. If you continue to hire more employees, you may think that monthly wages are the only expense you have to pay. This is not the situation.
Employing employees in-house can be costly. In addition to the cost of salary, you may also be responsible for:
- Cost of recruiting: Recruitment is a thriving business within the UK. Based on Business Advice, most companies compel people to charge between 20-30 % of their salary.
- Cost of training: New employees must be taught before working on tasks. You or someone else must spend time away from revenue-generating tasks to complete this. Instead, you could use this time to attract new clients or work on current work. When you outsource, the accounting outsourcing companies ensure that the workers you outsource are knowledgeable about the accounting tasks you assign them. Did you know Fin-eX Outsourcing is an #acca and #icaew approved employer. All our staff are qualified accountants.
- Office equipment and space: When you hire an employee on your premises, you will have to pay for the onboarding process, medical, furniture, workstations and office space parking spaces, and other tools.
- Cost of time: One area accounting firms don’t take note of is the working hours of an accountant in-house. The accountant has more than 253 work days in the year. Still, when you consider holidays (28 days inclusive of bank holidays), sickness, appraisals, meetings and even training, your accountant at work is unlikely to work for more than 225 days a year. When you hire an accounting outsourcing services firm like Fin-eX Outsourcing, you are not hiring just an accountant
- End-to-end cost includes the expense of developing and managing internal accountants. This is a part of annual appraisals, a meeting to discuss the possibilities for career advancement and provide feedback on the progress made. It’s likely to take three management days throughout the year and possibly more if there are issues. This expense can be easily prevented by outsourcing your accountancy, bookkeeping or tax work.
- Other costs for employers: Some of the most obvious employer expenses you could be responsible for include Employer National Insurance contributions, auto-enrolment pension contributions, employers’ liability insurance, holiday pay, sick pay, maternity pay, cost of coffee and toilet paper, phone bills, electricity bills, and a drink or two now and then.
IS ACCOUNTING OUTSOURCING RIGHT FOR YOUR FIRM?
When you outsource accounting, you can cut down or eliminate the majority of the costs associated with employees mentioned earlier. Reduced costs allow you to save money and increase the resources and time required to grow your business.
Accounting as a field has experienced massive change over time. With the advancement of technology and the integration of automation in the majority of their procedures, the field has evolved into more sophisticated and organized than ever.
However, the change is constantly confronted with numerous issues. The Great Resignation and the imminent consequences of the global pandemic coronavirus have placed enormous pressure on businesses and forced them to go the outsourcing option. Accounting outsourcing services are expected to grow in the years ahead.
Here’s the complete guide to outsourcing accounting in the UK.
FREE ACCOUNTING OUTSOURCING TRIAL WITH FIN-EX OUTSOURCING
Every business is looking for ways to maximize its earnings. If you’re considering outsourcing but aren’t sure whether it’s the best option, then why not contact us to request a free trial?
Fin-eX Outsourcing is a top accounting outsourcing company with operations in various countries, including the UK, USA, Canada and the middle east. With years of outsourcing experience and an established track of performance, Fin-eX Outsourcing is a one-stop location for accountants and accounting practices that want to outsource their accounting needs. Our team of over 1500 accountants are highly proficient and knowledgeable in all aspects of accounting and can perform seamlessly to the needs of our clients. With Fin-eX Outsourcing, you can swiftly and efficiently expand your company’s size without incurring any unreasonable additional cost.