Business Profile
Jaki Mitchell, outsourcing partner at Crowe Clark Whitehill, the national audit, tax and advisory services firm, explains how businesses that are feeling the pinch of the downturn could benefit from effective outsourcing.
Faced with the current economic climate, local businesses will be looking to outsource for myriad different reasons, including improved flexibility and efficiency and, more crucially, to save on costs.
An example is Nirvana Spa & Leisure, which is based in Wokingham and has more than 20,000 members. In 2002, the health and leisure business began to outsource its accounting function to Crowe Clark Whitehill in order to allow senior management to both focus on the business itself as well as have access to more accurate management information.
Crowe Clark Whitehill provides Nirvana Spa & Leisure with a raft of services that include running a weekly and monthly payroll, processing accounting data, reconciling the balance sheet and producing monthly management accounts, raising sales invoices and credit control, managing the bank account, preparing supplier payment runs, and completing VAT returns.
Sean Barley, the chief executive of Nirvana Spa & Leisure, said: “Our objective was to have accurate management information available within four weeks of the month end in order to run our business successfully. The previous supplier was working to a three-month target. Crowe Clark Whitehill is producing results within 10 days of the month end.”
Outsourcing provides instant access to a wide range of skills, from financial technical expertise to specialist industry knowledge which helps firms stay one step ahead of their business needs and meet regulatory requirements. It also adds flexibility with resources being increased or decreased down, depending on budget and workload.
Effective outsourcing is not just about saving money, but about achieving long-term results. Crowe Clark Whitehill also provides Nirvana Spa & Leisure with financial advice, forecasting and budgeting services, and corporate and personal tax planning advice in addition to company secretarial services.
With Crowe Clark Whitehill staff permanently on-site, Crowe Clark Whitehill is able to provide proactive advice and solutions quickly. As a result, the day spa has benefited from a six-figure VAT refund and secured thousands of pounds with an R&D tax credit claim.
Companies should also consider outsourcing when they have their own in-house accounting support and are looking for a professional firm to carry out their statutory compliance reporting as well as provide business and tax advice.
In response to increasing demand for a range of tailored outsourcing services, the Business Solutions team in the Thames Valley office of Crowe Clark Whitehill is growing steadily. There are chartered accountants, bookkeepers, Sage specialists and outsourcing advisers, who combine knowledge and experience with the versatility that is required to provide a flexible, solutions-based service.
Much like a day spa, effective outsourcing can relieve stress. It frees up entrepreneurs from being bogged down and enables them to focus on the next big thing that will make their business a success.
n For more advice on how outsourcing can help your business contact Jaki Mitchell in the Thames Valley office on: (0118) 9597222 or for further information, visit: www.crowecw.co.uk
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