Outsourcing Your Accounting – Is It Right for Your Brilliant Business in 2025?
As businesses grow, managing the financial side of things often becomes more complex — whether it’s payroll, tax filings, or staying on top of reconciliations. At some point, handling everything in-house may not be the most efficient or cost-effective option.
That’s where outsourcing your accounting comes in.
In this article, we’ll take a closer look at what outsourcing your accounting involves, the key benefits it can bring to your business, and what to consider if you’re thinking of making the switch.
What is outsourced accounting?
Outsourced accounting means bringing in an external expert — usually an accountancy practice or dependent on your requirement sometimes an interim (or ‘fractional’) financial controller or director — to manage some or all of your financial tasks. These might include:
- Payroll processing and remuneration planning
- Annual accounts and tax preparation from onward submission to Companies House and HMRC
- Bookkeeping and bank reconciliations
- Preparation and submission of VAT returns
While hiring an in-house accountant is another option, this can be a costly move — especially for growing businesses that need flexibility and scalability. The challenge at this point is that you may actually need the skills of different people for different roles, all of which you can find in an accountancy practice specialising in looking after businesses like yours, but would be unlikely in one individual.
Managing things yourself might seem like a money-saver in the short term, but without the right expertise, you risk costly mistakes and non-compliance. Not only that, but you really should think about the value of your time, and ensure you concentrate on the tasks that are high value and high experience, which only you can do well.
For these reasons, more businesses — from start-ups to established enterprises — are choosing to outsource instead.
What are the benefits of outsourcing your accounting?
Here are some of the key advantages:
-
Cost-effective and scalable
Hiring full-time finance staff is expensive, particularly if your accounting needs vary throughout the year. Outsourcing your accounting allows you to pay only for what you need — and scale up or down as your business evolves.
-
Access to specialist expertise
Working with an external provider gives you access to a wider pool of experienced professionals, including specialists in tax, payroll, compliance, and business growth. This means better advice, better support, and better results.
-
Improved compliance
Accounting and tax requirements and legislation are continuously evolving and changing, especially in these turbulent, high tax times. By working with providers who understand and more importantly keep up to date with these legislative changes, you can reduce the risk of non-compliance and avoid potential fines and penalties.
-
More time to focus on your business
By handing over time-consuming financial admin, your internal team can focus on what matters most — whether that’s growing the business, looking after clients, or improving your services.
What services can you outsource?
You don’t have to outsource everything. Many businesses choose a blended approach, keeping some elements in-house while passing others to their external provider.
Typical outsourced services include:
Accounts receivable and payable
Stay on top of invoicing, credit control, and supplier payments to keep cash flow healthy and avoid bottlenecks.
Payroll
Ensure your team is paid accurately and on time, while staying compliant with employment and tax regulations — wherever your people are based.
Tax returns and compliance
From preparing annual accounts to submitting VAT returns and corporation tax filings, an outsourced accountant ensures everything is accurate and submitted on time.
Financial reporting and planning
Understand how your business is performing with clear, timely reports. Outsourcing can also support budgeting, forecasting, and strategic commercial financial planning.
How to outsource your accounting successfully
If you’re considering outsourcing, here are some key steps to follow:
- Identify what you need: Consider which finance tasks take up the most time or need specialist knowledge, and decide which ones you’d like help with.
- Find the right partner: Look for a provider with relevant experience, strong credentials, and a communication style that fits with your business.
- Set clear expectations: Agree on service levels, timelines, deliverables, and fees upfront — ideally within a clear service level agreement (SLA).
- Protect your data: Make sure your provider follows robust data protection practices and only has access to what they need.
- Maintain regular contact: Regular check-ins and open communication help ensure your outsourced partner remains aligned with your business goals.
- Review regularly: As your business evolves, revisit your arrangement to make sure it still delivers value — and make changes if needed.
What should you be aware of?
Like any business decision, outsourcing has potential challenges:
- Less direct control: You’ll be trusting a third party with key business information. Choosing a reputable partner is essential.
- Data security: Make sure your provider has strong systems in place to protect your information, and complies with all relevant legislation.
- Fiduciary duties: Outsourcing your accountancy and tax compliance does not outsource your fiduciary duties. You remain responsible for what is reported about your business and must sign off on your accounts and tax returns. There is no excuse for ‘not understanding’ what you are signing.
Could outsourcing be right for you?
Outsourcing accounting isn’t about handing over control — it’s about finding the right support so you can spend more time doing what you do best.
At IN Accountancy, we offer flexible, tailored support to help you manage your accounts with confidence. Whether you need help with day-to-day bookkeeping or strategic financial planning, we’re here to lighten the load.
Thinking about outsourcing your accounts? Get in touch — we’d be happy to talk through your options.
Whilst you’re here, why not give the IN Accountancy LinkedIn page a follow here.
