Why outsourcing your finance function makes sense for UK subsidiaries of overseas companies
Overseas businesses establishing a UK footprint will face many challenges. Managing a finance function should not be one of them, say John Bennett and James Johnson.
Businesses expanding into the UK for the first time will typically start at a smaller scale, driven by an experienced team focused on understanding and building a market for their products or service.
Backed by their parent company, that team may be in a sales function to drive revenue or bring specialised knowledge and skills needed to build and develop the business in the UK. Whatever the approach, it will be a sizeable investment and one that needs to deliver a return as soon as possible.
Yet, as every business owner, director or senior manager will know, running and managing a business brings with it considerable regulatory and financial compliance requirements. And that can be time-consuming, directing precious resource away from building and growing the business.
A UK business, whether a subsidiary of an overseas company or new venture, will, amongst other things, need to register that business with Companies House, file VAT returns, run a payroll and pay relevant taxes including PAYE and National Insurance, prepare annual accounts and pay Corporation Tax.
It often requires specialist knowledge, is deadline-driven and takes time. Whilst a parent company outside of the UK may well hold that knowledge and can resource the regulatory and compliance obligations in its home country, it often makes little financial sense to build a permanent finance function in the UK from day one.
Hillier Hopkins is an entirely independent accountancy practice and part of the TGS network of accountancy firms operating across 55 countries.
It has built a dedicated and specialist team that provides a fully outsourced finance function for overseas businesses establishing a UK footprint.
Hillier Hopkins can assist in company registrations and filings with Companies House, VAT, bookkeeping and accounts preparation and payroll. The team will help companies open UK banking facilities and can manage payments to suppliers and customer invoicing.
Alongside that regulatory and compliance function, the firm’s wider team of highly experienced accountants can provide consultancy advice to the business and manage the personal tax affairs of overseas nationals whilst working in the UK.
It is a service that has been provided to many international businesses as they establish and build a UK presence, particularly US technology, consumer products and life sciences businesses.
It is a relationship, Hillier Hopkins recognises, that is based on trust and one that requires a close relationship with the team on the ground in the UK and the parent company. That trust is built on the firm’s reputation and track record, a highly personalised approach, independence, and structured reporting.
As the UK business grows it will inevitably lead to the business creating its own finance function, and here too Hillier Hopkins can help, building the internal processes and structures needed, providing a virtual finance director role.
There are many good reasons for a UK subsidiary of an overseas company to outsource its finance function. They all start with Hillier Hopkins.
Contact the team
In the first instance, please contact John or James and we will always be glad to provide an introductory call free of charge. Here are their contact details:
John Bennett, Consultant. +44 (0) 1908 713 862 john.bennett@hhllp.co.uk
James Johnson, Principal. +44(0) 1908 713 873 james.johnson@hhllp.co.uk
