Accounting for IT companies often requires specialist industry knowledge — but hiring a full-time finance team can be expensive.
Outsourcing your accounting and business advisory needs to an online accountant can give you access to that valuable insight, all without exceeding your budget.
Here are some of the benefits of outsourcing accounting for IT companies.
Benefits of outsourcing accounting for IT companies
Save time
It can be difficult to keep pace with other tech businesses when you’re snowed under with endless accounting tasks and piles of paperwork.
Outsourcing part of your workload can free up one of the most valuable resources for a growing business: time.
Instead of spending hours calculating your tax returns or handling time-consuming bookkeeping tasks, you can prioritise launching your products on time and meeting high expectations from shareholders and investors.
A lighter workload can also improve staff morale and prevent burnout. With an outsourced accountant shouldering some of the burden, your IT experts will have more time to put their talents to good use and benefit the business.
Cut costs
Outsourcing to an expert outside your IT company is usually a more affordable option than hiring an in-house finance team.
Many IT companies don’t have the resources to put a full-time accountant on the payroll. Thankfully, outsourced accounting providers can offer the same high-quality services for a fraction of the price.
You can even increase or decrease the levels of support you receive depending on your company’s accounting needs and budget. This flexibility can be particularly beneficial for tech startups.
Outsourced accountants can also save you money on your tax returns. They’ll use their in-depth knowledge of your accounts and the tax system to maximise your business expenses and ensure you don’t overpay your corporation tax or VAT bill.
Stay compliant
As experienced tax experts, it’s your outsourced accountant’s responsibility to keep up with ever-changing tax legislation.
They can prepare and file your statutory accounts for you, so you won’t need to worry about non-compliance fees or missed deadlines. Your accountant will ensure you meet your obligations to HMRC and Companies House alike.
Plan a brighter future
Your outsourced accountant can give you deeper insights into your IT company’s performance. The more informed you are about your business finances, the easier it’ll be to make good decisions about its future.
Depending on your budget, outsourced accountants can provide the following specialist accounting services:
- management accounts services to help you understand your financial performance in more detail.
- business planning and raising finance to help you secure funding and plan your IT company’s future.
- business growth services to offer expert financial advice on how to scale your business in a sustainable way.
Use the best tech
21st-century businesses need to use the best tech to get ahead — and that includes cloud accounting software.
For startups, outsourced firms can identify which cloud accounting package would work best for your IT company. They’ll then help integrate your new accounting software with your existing systems to streamline and automate your financial processes.
Once everything is up and running, you’ll be able to access your real-time financial data and collaborate with your online accountant wherever you are, whenever you need.
Reward innovation
Innovation sits at the heart of the tech industry. IT companies are always developing new software and finding new ways to improve existing processes — so why not reward that innovation?
An outsourced accounting provider can help you use research & development (R&D) credits to reduce your IT company’s taxable profits. They’ll advise you on which projects count as R&D and guide you through the process of making your claim.
Contact us to find out more about the benefits of outsourcing accounting services for IT companies.