Outsourcing accounting: When is it worthwhile for SMEs?

For many small and medium-sized enterprises (SMEs), accounting is a necessary evil. It takes time, requires expertise, and ties up resources that could be used more efficiently elsewhere in the business. This is where outsourcing accounting comes into play. But when is this step really worthwhile?

What does outsourcing accounting mean?

When outsourcing accounting, certain or all accounting tasks are delegated to an external service provider. This may include payroll accounting, accounts receivable and accounts payable management, or even the entire financial accounting function. The aim is to relieve internal resources while benefiting from the expertise of a specialised provider.

Advantages of outsourcing for SMEs

1. Time and cost savings: SMEs are often under pressure to use their human and financial resources as efficiently as possible. Outsourcing accounting can save time because internal staff can focus on core tasks while the external service provider takes care of financial accounting. This also reduces the effort required for training and the need to use expensive accounting software.
2. Expertise and quality: A professional accounting service provider offers extensive specialist knowledge and experience that often goes beyond what is available internally. This results in higher quality in accounting processes and minimises errors that could otherwise have costly consequences.
3. Scalability: Since the volume and requirements of accounting in SMEs can fluctuate, outsourcing offers a flexible solution. If needed, the service can be quickly adapted to changing business requirements without having to build up additional internal resources.
4. Legal compliance: Accounting requirements are extensive and change regularly. An external service provider always stays up to date with the latest legal regulations and ensures that the company remains compliant. This is particularly relevant for avoiding penalties due to posting errors or missed deadlines.

When is outsourcing worthwhile?

Although outsourcing offers many advantages, it is not always the best choice for every business. Here are some signs that outsourcing could be worthwhile for an SME:

• Lack of resources: If the company has neither the time nor qualified staff to ensure proper accounting, outsourcing can provide much-needed relief. Especially in the early stages of starting a business, it is often not yet worthwhile to build an in-house finance team.
• Growth phases: During periods of growth, when the business expands and accounting requirements increase, outsourcing provides the necessary flexibility without overloading internal structures.
• Complexity: When accounting processes become too complex—for example due to international business activities or dealing with different tax regulations—it makes sense to outsource them to specialists.

Conclusion: Outsourcing as a strategic advantage

For many SMEs, outsourcing accounting can be a strategic decision that saves costs while improving quality and efficiency. Using an external service provider enables entrepreneurs to focus on what matters most: developing their business.

Are you interested in a straightforward, tailored solution for your accounting? Hey Unkelbach Financial Services offers SMEs a comprehensive service that goes far beyond simply posting receipts. We help you not only make your accounting more efficient, but also sustainably improve your profitability and liquidity position.

Contact us today for a non-binding consultation!