How tax outsourcing can improve business scalability
If you’re one of the 5.5 million SMEs in the UK, chances are you’re all about scalability and growing your business. If so, you might be wondering how you can scale your business to meet demand and level up.
One sure-fire way to improve your scalability is by outsourcing your accounting functions. Not convinced? We take a deep dive into tax outsourcing for small businesses below.
Why is it important to get on top of tax as a business?
We get it. Nobody’s favourite job is the annual tax return, especially if you don’t have a financial background. But it’s important to get on top of your tax matters if you’re going to scale efficiently.
Tax can be difficult to understand as there are a lot of different taxes that can impact your business. From VAT compliance to income tax or corporation tax, ensuring compliance can be tricky. And the worst bit? All of these things will ultimately impact your business sales and profits.
What are the benefits of outsourcing?
If you’re feeling overwhelmed at the thought of calculating your VAT or corporation tax (if a large enterprise business), one of the best things to consider is outsourcing your tax matters. Here’s why:
- It’s cost-effective – Outsourcing might sound expensive, but it needn’t be. Outsourcing means you don’t need to invest in expensive equipment, technology or infrastructure. Just pay a subscription fee and forget about the rest.
- Increased productivity – Rather than let your employees get bogged down in the intricacies of tax compliance, let the professionals handle it. Outsourcing can take over non-core tasks, so your employees can focus on what they’re good at. The end result? Highly motivated, productive employees.
- Scalability – As an SME, you’re likely to experience significant growth at one stage. Rather than scramble around in a blind panic as and when this happens, outsourcing allows you to scale up and down, so you can adapt to market conditions.
- Saves time – If you constantly find certain tax tasks are time consuming, outsourcing can eliminate the hassle and free up time for accounting and tax departments to focus on more meaningful tasks.
- Risk sharing – As a small business, mitigating risk is key if you’re going to thrive. By outsourcing your tax matters, you can reduce the legal and financial risks associated with errors occurring from in-house manual input.
Is outsourcing right for me?
If you’re a small business looking to grow and scale, then yes! Outsourcing is a great way to help you scale your business at speed whilst keeping costs low – which is especially important given high inflation rates. Will you take the plunge and reap the benefits of outsourcing for your tax processes?