Firm saves 60% by outsourcing accounts

Mar 17 2010 by Peter McCusker, The Journal

A NORTH East architectural group says it has shaved 60% off its accounting overheads after switching from an in-house financial director to an external chartered accountancy firm.

Red Box Design Group, which employees 40 staff across its Newcastle and Darlington offices, has also managed to claw back 50% of annual auditing costs after switching to Newcastle-based unw.

Unw, which operates out of Citygate on St James’ Boulevard, has taken over Red Box’s monthly accounting in a move which has saved the architectural practice 60% on salary overheads alone.

Alan Smith OBE, managing director of Red Box Design Group, the architect behind Sunderland Aquatics Centre and Quorum Business Park in Newcastle, said: “Cost control is more important than ever in this climate so, to achieve 60% savings on accountancy, such as cashflow, profit and loss and the balance sheet reporting, and another 50% on the auditing, is pretty good going. Ironically, it was a former business advisor who queried whether we had put various supplier contracts out to tender, and that highlighted to us that we hadn’t actually done that with the auditing they were providing!

“There’s an element of risk outsourcing all your accountancy services, but we get a really personal service with unw and always know who we are going to get.

“We also have strategic meetings throughout the year which allows us to talk generally and get fresh eyes on business ideas, or issues surrounding pensions or tax, and that’s been absolutely first class.”

Unw partner Andrew Wilson said: “An increasing number of businesses are looking at outsourcing part or all of their accounting functions.

“By tailoring our input to their particular needs, we usually find we can generate a saving yet deliver greater value. They also gain access to other areas of expertise like VAT, corporate and personal tax and corporate finance as and when they need it.”