For small businesses, outsourcing the bookkeeping and accounting functions is a practical and cost-effective solution for ensuring they comply with the need to keep proper books of account and to meet  the various filing deadlines such as VAT, PAYE, annual accounts and tax returns. Missing the deadlines can be very expensive, with fines, penalties and interest charges, perhaps running into hundreds of pounds.

Outsourcing provides wider expertise than is generally available in small businesses and also opens up opportunities for management and the business to concentrate on running the operations. It also provides a mentor who can advise on the key performance indicators and the finances of the business. 

Outsourcing can save many costs, such as salaries, company national insurance contributions, holiday pay, sick pay, staff replacement costs and office running costs. It may also save on the annual year end accounting fees. Complete the table to see how much this function is costing you.