If you’re a regular reader of our blog, you’ll know over the last few months, we have discussed management accounts.
These are a collection of reports that are used internally to track progress and the financial status of a business.
For many people, management accounts are something kept in house, for the eyes of the stakeholders and decision makers only, but that’s not the only way to do it.
Management accounts can be outsourced and put in the hands of experts to help you out.
But what are the benefits of this? And should your company look to outsource?
Let’s find out.
How Does Outsourcing your Management Accounts Work?
If you choose to work with an account management service, you will be teaming up with an expert who can advise you on how to interpret and act upon your findings.
Not only that, but you will have someone that can help order your finances, get everything in place, and present any reports to you in a way that is clear and concise.
For example, our Blue Rocket account management team will provide you with a dedicated team, who will be there with one-to-one accounts meetings hosted by an expert accountant, the team leader, who can answer any questions and talk you through your figures.
By working with an expert, you will be able to gain control of your cash flow, spot any areas open to improvement, and measure the performance of your business with someone who can provide all the information you need.
7 Benefits of Working with a Management Accountant
There are many benefits to outsourcing your management accounts, including:
It Frees up Your Time
Preparing your figures and showcasing them in reports can take plenty of time. If you are a small team, this could mean losing a member of staff for a long period while they work on your management accounts.
Outsourcing removes the need for you to use business hours on building your reports and allows you to focus on other business activities instead.
Without the need to assign a member of staff to the task, you will be able to be much more productive in other goals, knowing your reports are still going to be made on time.
Management accounts are often used much more regularly than financial accounts, so using your own workforce’s hours could quickly become a regular occurrence if you choose to do it in house.
More Accurate and Reliable Reporting
Whether you have an in house accounting team or not, you can improve your accuracy and reliability of your reports by working with an expert.
Outsourcing management accounts means you are putting it in the hands of an experienced professional. This is someone who specialises in preparing just this type of report, and will always be on top of your figures, KPIs, and more.
In a busy work environment, it can be easy to slip up and make mistakes. With your accounts, one wrong number and your whole figures maybe out, which could lead to issues.
These can be avoided by making sure all accounts are prepared by a professional who has the time and know-how to always make sure they are perfectly accurate.
Access to a Specialist
The next benefit is that you gain access to a specialist.
This is someone who is trained in creating and presenting these reports, and who will offer you one-to-one advice on how to use the figures presented to help your business grow.
Not only that, but they will be fully up to date on how to comply with all of the latest regulations and tax laws, so will be able to advise you on these matters also.
Finances can be a hard thing to understand, and it can be tricky to know what you’re looking at sometimes, and that’s why it is so important to have someone who can talk you through it by your side.
Money Savings
While outsourcing your management accounts does cost you money, it can actually save you in the long run.
This is because it is taking away the need to hire and train in-house staff to do these tasks, as well as removing the requirement for accounting software and equipment to help you make the reports.
If you outsource, everything is done under one price, and it can often be less than it would be to go it alone when you add up all of the costs.
On the topic of finances, this is what management accounts are all about, and with the help of an expert, you can pinpoint any areas that are showing weakness and look for ways to improve, which is just another way this can help boost your business’ bank balance.
Improved Efficiency
Speed is important in business.
Most businesses work under tight deadlines, and to stay afloat you’ve got to be on time.
Creating and showcasing your management accounts takes time, and it may be time your business doesn’t have to waste.
By outsourcing, you will be working with someone who is trained in quickly putting reports together that don’t lack in quality.
If you stay in-house, the process will undoubtedly take longer, and the need to get them done quickly can lead to mistakes.
If you have someone working externally then it isn’t costing you any man hours and your reports can be with you whenever you need them, making the whole process of getting your accounts in order lightning quick.
Scalability
Most businesses have a plan to grow.
Whether it is expanding your workforce, your client base, or your revenue, scaling is key to when taking your business to the next level.
Outsourcing management accounting allows you to scale your accounting needs without having to worry about overworking your in-house team.
A trained accountant will have the knowledge and equipment to handle large amounts of figures, meaning they can handle whatever you throw at them.
This can be overwhelming when staying in-house, and the fear of taking on too much can stop you from scaling.
Especially if you’re a start-up or small business, being able to take on more work and more financial actions without the fear of the figures piling up is a big weight off your mind.
Peace of Mind
One of the things that is massively underrated when it comes to business and finances, is peace of mind.
In a business, your accounts are everything, and you need to be on top of them.
Outsourcing to a professional means that you are always get figures that are correct, and you can get professional advice on the best directions to take your business.
It will stop you from getting overworked and allow you the freedom to work on other parts of your business, safe in the knowledge that your management accounts are being handled by an expert.
Management Accounting with Blue Rocket
If you would like to outsource your management accounts, consider Blue Rocket Accounting.
Our team of specialist accountants would be happy to take control of your accounts and provide you with an abundance of knowledge and expertise.
Management accounts are vital to businesses of all size, so if you want to know more, or would like to discuss our work with us, then get in touch today.
