Mamut, the business software group, has closed a deal that will allow small businesses to outsource their entire accounting and finance function.

The deal, with the International Association of Accountants Innovation and Technology Consultants, will see the launch of the managed accounting service known as Virtual Accounts Office (VAO).

Mamut said the service would allow SMEs to have their accounts managed by an established firm of chartered accountants and registered auditors familiar with international accounting standards and Sarbanes Oxley requirements.

The service is fully hosted and delivered over the internet, allowing it to be used by businesses anywhere in the world.

'The VAO service allows SMEs to focus on their core business, rather than spending time on routine financial administration,' said Alan Moody, managing director, Mamut UK and Ireland. 'This will help new companies to grow, but also assist established SMEs to streamline their operations.'

VAO takes charge of all core accounting functions including sales ledger, invoicing, purchase ledger, cashbook and nominal ledger.

Customers can take advantage of electronic invoice handling, sales and purchase order processing and credit control.

VAO can also handle a number of compliance issues that need to be addressed by all companies, including VAT, statutory accounts, auditing, corporation tax, payroll bureau and annual returns.