Outsourcing the Finance Function

Welcome to 'The Bottom Line". In this week's post, we delve into what is fast becoming a key topic for Irish small and medium enterprises; Outsourcing the Finance Function. Almost every business in Ireland has an accountant, who at the end of the year prepares the accounts and tax returns. As a business grows, so too grows their financial requirements. For example, once the turnover of a business reaches a certain threshold, they must register for VAT and prepare regular VAT returns. Once staff are hired, payroll must be processed for them. Debtors and Creditors become increasingly difficult to manage, and eventually there comes a point where monthly reports and budgets are required to assist the business in reaching its strategic objectives. 

In large companies, the above is overseen by a finance team led by the company's Chief Financial Officer (CFO). This is not the case for smaller businesses. As most of you will know, employing people in 2024 is becoming increasingly complex and difficult. In addition to employers taxes, engaging staff places a host of obligations on employers such as holiday pay, sick pay, annual leave entitlements, redundancy, etc. And that's if you can find someone willing to work for you in the first place! Therefore, building a finance team is often the last thing on the mind of an entrepreneur who is focused on growing their business. They don't want the hassle of dealing with the finances, or indeed with unnecessary staffing issues when they most likely have enough already. 

Luckily, there is now another option. There are some forward thinking accounting firms, like ours, who are offering an outsourcing service for all these financial requirements. This is a clean solution for growing companies to retain their focus on the key activities of their business, while maintaining a high level of financial peace of mind. 

This concept of outsourcing the financial function could be broken into two distinct areas; Outsourced Bookkeeper and Outsourced CFO. Bookkeeping is the foundation of financial clarity in any business. It is the bedrock of financial order, and involves the recording of day to day transactions. In most cases, this would involve recording invoices, reconciling bank accounts, preparing VAT returns and processing payroll on an ongoing basis.

There are numerous benefits of outsourcing your business' bookkeeping. Your financial records and tax returns will be completed to a much higher standard than by an in-house bookkeeper as the work will be prepared and reviewed by highly skilled accountants. The costs associated with this are normally a fraction of employing a full time staff member, especially when all the obligations of employing a person are considered. It also streamlines your financial process. When you appoint an outsourced bookkeeping firm, they will come in with a tailored process for your business, and assist in it's implementation.

Outsourcing the CFO function is a much higher level engagement, and oftentimes is carried on alongside outsourced bookkeeping. An outsourced CFO role takes financial management to the next level. It's not just about recording transactions; it's about strategic financial leadership. You gain a seasoned financial expert in your corner, offering insights beyond the day-to-day operations. Many SME's don't have this function internally, due to the prohibitive cost of hiring a full-time accountant to act as the internal CFO. 

Engaging an outsourced CFO can often be the difference between growth and stagnation for many businesses. It's common during growth to reach glass ceilings, or struggle to progress beyond a certain level. The insight of a financial expert can provide the correct guidance to navigate the issues holding you back, issues you might not even know about. In addition to the cost advantages of outsourcing the CFO, you also gain an advisor who's expertise and experience span a broad array of businesses and industries. They can apply knowledge from their work with other companies who have been in your position, and tailor the financial strategies to suit your needs and aspirations. Click here to learn more about the benefits of appointing an outsourced CFO in your business http://jesinnott.ie/outsourced-cfo-appointments.html . 

We believe that small and medium enterprises are the backbone of our community, in fact, according to recent CSO figures 7 out of 10 jobs nationwide are provided by SMEs. Therefore, it's only fair that our small businesses can obtain the same level of financial expertise as the large companies, and outsourcing is the solution. This is more than just a service, it's a partnership in your journey to success. 

We thank you for taking the time to read this post, and hope it has been of value. If you'd like to get in touch with any questions, or to learn more about outsourcing options, please do not hesitate to leave a comment below, or reach out to us at [email protected] .