In the dynamic accounting landscape, staying ahead of the curve is imperative. This is where flexible outsourcing for uk accounting firms models come into play, reshaping how accounting firms operate. At Accurex Accounting, we offer a range of engagement models tailored to meet the diverse needs of UK accounting firms. Let’s delve into the details of each model and discover how they can revolutionize your practice.
Unlocking Efficiency and Cost Savings
The per-job engagement model is a game-changer for accounting firms seeking efficiency and substantial cost savings. Here’s how it works: the supplier provides a customized quotation for each job based on the customer’s specific requirements. We then allocate highly-trained staff from our resource pool to complete the task. These professionals, often commerce graduates, are equipped with all necessary tools, including a desktop and phone, ensuring seamless collaboration.
The benefits of the per-job model are astounding. Accounting firms can achieve cost savings of up to 70%, eliminating the need for an exhaustive hiring process and PAYE-related administration. Moreover, with access to a vast pool of skilled and trained personnel, capacity can be ramped up swiftly to meet surges in demand.
Your Dedicated Remote Workforce
The Per FTE engagement model allows accounting firms to have a full-time employee work remotely for them. Before assignment, customers have the option to interview potential staff members. These professionals, including ACCAs, are on par with onsite staff but come at a fraction of the cost. They are managed directly by the customer and are entitled to benefits such as 30 days of annual leave.
With this model, accounting firms can enjoy a staff with similar skill sets as their onsite team, but at just 35% of the cost. The Per FTE model eliminates the need for overhead costs and personnel management, providing a seamless extension of your workforce.
Flexibility Meets Cost-Efficiency
For those seeking flexibility without the commitment of long-term contracts, the per-hour model is the perfect fit. Instead of hiring a full-time employee, customers pay based on the hours worked. Weekly timesheets detail the hours consumed for each job, ensuring transparency and accountability.
This model allows accounting firms to initiate their outsourcing journey with ease. Savings of at least 40% against in-house costs are achievable, with no minimum time commitment and no expiration on hours. The per-hour model eradicates the need for fixed obligations, streamlining the process from quote to completion.
Aligning with Client Success
This model’s fee is based on what accounting firms charge their clients. Like the per-hour model, it requires no long-term commitment. This model is especially suited for complete compliance services, encompassing bookkeeping and other accounting tasks.
With the Percentage of Client Fee model, accounting firms can align their outsourcing costs with client fees, ensuring profitability and sustainable growth. This approach offers at least a 50% reduction in costs compared to in-house operations.
Under the Percentage of Client Fee model, accounting firms can outsource various tasks related to complete compliance services. These tasks include:
- Bookkeeping Services: This encompasses the recording, organizing, and maintaining financial transactions for a client’s business. It involves data entry, reconciling bank statements, and generating financial reports.
- Accounts Payable Management: Handling invoices, tracking expenses, and managing payments to suppliers and vendors.
- Accounts Receivable Management: Managing invoices, tracking client payments, and ensuring timely collection of receivables.
- Financial Statement Preparation: Compiled income client’s financial health.
- Tax Preparation and Filing: This includes the preparation of income tax returns for individuals or businesses and ensuring compliance with tax regulations.
- Payroll Processing: Calculating employee salaries, withholding taxes, and managing payroll-related filings and payments.
- Financial Analysis and Reporting: Analyzing financial data to provide insights and recommendations for improving a client’s economic performance.
- Budgeting and Forecasting: Assisting clients in creating budgets, financial projections, and forecasts to guide their financial planning.
- Compliance with Regulatory Requirements: Ensuring clients adhere to industry-specific regulations and standards.
- Audit Support: Providing documentation and support during financial audits to ensure accurate and transparent financial reporting.
- Management Reporting: Creating customized reports that offer insights into a client’s financial performance and help in decision-making.
- VAT and GST Services: Handling Value Added Tax (VAT) or Goods and Services Tax (GST) calculations, filings, and compliance.
- Financial Advisory Services: Offering strategic advice and guidance based on the client’s financial goals and circumstances.
Bookkeeping is a fundamental aspect of managing the financial affairs of any business, regardless of its size or nature. It involves systematically recording, organizing, and maintaining financial transactions related to a business’s operations. These transactions can include purchases, sales, receipts, and payments.
Here are some key aspects of bookkeeping:
- Recording Transactions: Bookkeepers record every financial transaction that occurs within a business. This includes sales, purchases, supplier payments, customer payments, and other economic activity.
- Classification: Transactions are categorized into various accounts, such as revenue, expenses, assets, liabilities, and equity. This classification helps in organizing and tracking the flow of money.
- Double-Entry System: Bookkeeping typically follows the double-entry system. This means that for every transaction recorded, at least two accounts are affected. For example, when a sale is made, revenue increases (credited), and the accounts receivable or cash account also increases (debited).
- Ledger Maintenance: A ledger is a collection of all accounts. It shows the balance in each bill after every transaction. There are individual ledgers for each type of account (e.g., cash ledger, accounts payable ledger).
- Bank Reconciliation: Bookkeepers ensure that the company’s records match the bank’s. This involves comparing the bank statement with the company’s books and making necessary adjustments.
- Financial Statements: Bookkeeping forms the basis for preparing financial), which shows revenue, expenses, and profit or loss over a period, and time.
- Compliance and Reporting: Accurate bookkeeping is essential for meeting legal and tax obligations. It ensures that the business complies with tax laws and allows for the preparation of accurate financial reports.
- Budgeting and Forecasting: Bookkeeping data is crucial for creating budgets and financial forecasts. It provides insights into past financial performance, helping set realistic financial goals for the future.
- Decision Making: Well-maintained books give business owners and managers the financial information to make informed decisions. They can assess profitability, cash flow, and financial stability.
- Audit Trail: Proper bookkeeping establishes a clear and organized trail of financial transactions. This is invaluable in audits or when financial records need to be reviewed.
- Analysis and Planning: Bookkeeping data can be used to analyze business performance, identify trends, and develop strategies for growth and improvement.
Conclusion:
In summary, bookkeeping is the foundation of a business’s financial management. It provides a clear and accurate picture of a company’s financial health, enabling owners and managers tax requirements.
These tasks are crucial for maintaining financial accuracy, compliance, and overall financial health for businesses. By outsourcing these functions under the Percentage of Client Fee model, accounting firms can focus on providing high-value strategic advice and growing their client base.
At Accurex Accounting, we understand the evolving landscape of the accounting industry. Our flexible engagement models empower UK accounting firms to thrive in a competitive environment. Whether it’s the efficiency-driven Per-job model, the dedicated Per FTE model, the flexible Per Hour model, or the strategic Percentage of Client Fee model, we have the solution to your needs. Revolutionize your practice today with outsourcing for uk accounting firms, your trusted outsourcing partner.