Should you be outsourcing your accounting tasks?

May 13, 2024

Running a successful business entails astute financial management, and at the core of this is the crucial decision of how to handle your accounting needs. Should you bring a full-time, in-house accountant into the fold, or does the more flexible route of outsourcing better suit your business objectives?

Outsourcing statistics for the UK show that around 70% of B2B companies outsource key tasks and processes to third parties to meet their goals. The most outsourced skills for small businesses include accounting (37%), IT tasks (37%), digital marketing (34%), and human resources and development (28%).

This is largely due to the fact that small businesses often do not have the required skills and proficiency for important business processes such as accounting. Other statistics show that up to 28% of companies outsource for payroll tax purposes.

While these figures show that outsourcing accounting tasks is on the rise, is that the right option for you? Let’s look at the advantages and disadvantages of both.


What are the pros and cons of hiring an in-house accountant?



  • Immediate accessibility: A full-time, in-house accountant is readily available for real-time financial support and guidance.
  • Deep understanding of business: Training an in-house accountant means they can develop an in-depth understanding of your business, tailoring their approach to your specific needs.
  • Direct oversight: Direct supervision allows for tighter control over financial processes and ensures compliance.
  • Customised solutions: An in-house accountant can craft bespoke solutions aligned with the intricacies of your business. • Cultural integration: Seamless integration with the company culture.



  • Less flexibility: Fixed salaries, benefits, and overheads for a dedicated finance professional can become especially burdensome during economic downturns.
  • Limited specialisation: While an in-house accountant can build a comprehensive understanding of internal processes, they may lack specialist knowledge or experience in other areas.
  • Dependency: Over-reliance on a single individual, posing risks during vacations, sick leave, or staff turnover.
  • Recruitment challenges: Although you can tailor the recruitment process to fit your business needs, finding the right talent can be time-consuming, with potential mismatches.


What are the pros and cons of outsourcing accounting?



  • Cost efficiency: Outsourcing allows businesses to pay for specific accounting services instead of a full-time salary, reducing fixed overheads.
  • Access to expertise: Working with an outsourced accounting firm can give you access to a diverse talent pool and more specialised skills.
  • Scalability: Flexible remote accounting services can scale with your business needs, ensuring you always get the right level of support.
  • Focus on your area of expertise: Outsourcing your accounting responsibilities allows the in-house team to concentrate on core business activities and more highlevel decision-making.
  • Outside perspective: Experts outside of your organisation can provide a valuable outside perspective, helping you see the bigger financial picture more clearly.



  • Communication challenges: While recent technological developments have made it easier than ever to collaborate with your outsourcing partners, communication is often more straightforward with in-house accounting teams.
  • Less control: Outsourcing can reduce your workload, but also means relinquishing some control.
  • Security concerns: If you outsource your accounting tasks, it’s vital to choose a firm that protects your sensitive data.


Choosing the right firm for your business

If you decide to outsource and want to build a successful partnership, choosing the right accountancy firm is crucial. To ensure a positive outsourcing experience, you should work with an accountancy firm that specialises in supporting businesses like yours.

The right firm will also maintain regular and transparent communication and seamlessly integrate its processes into your day-to-day business operations. By opting for a tech-savvy firm that understands your business and keeps you updated, you can develop a collaborative and responsive partnership that goes beyond the traditional periodic touchpoints. That way, you’ll receive the support needed for your business to thrive.


Making the right choice

In the ever-changing landscape of the UK business environment, the choice between hiring an in-house accountant or outsourcing accounting services requires careful consideration.

Each option presents its own set of pros and cons, and the right choice depends on your business’s unique needs, financial situation, and long-term goals. Conducting a thorough analysis, considering immediate costs, long-term sustainability and adaptability is imperative.

Whether you opt for the stability of an in-house accountant or the flexibility of outsourcing, the key lies in aligning your accounting strategy with the overarching financial health of your business. The flexibility, expertise and cost-effectiveness outsourcing offers make it the right fit for many modern businesses.


Looking into outsourcing your accounting needs? Speak to us! We’ll help you make the right choice for you and your business.



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