Accounting outsourcing is an aboveboard formula to get the best experienced professional experts to work on your books without providing any in-house facilities. Accounting outsourcing comes with a whole package of trust, high-quality work and low cost.
There is no truth hidden that outsourcing your account will reduce your cost up to 50%* but if you hire a bad accounting outsourcing company, your profit can also hit bottom.
An experienced peer who has already taken an outsourcing company knows the insight of this function but what if you are new to outsourcing?
This checklist will give you an overall idea of what question you should raise before hiring any outsourcing accounting company for your business.
Testimonials: “Multiple recommendations are always better than one”. When comes to hiring an accounting firm for outsourcing your work, always ask the firm for reviews. Ask what kind of clients they have worked with before. If they have any video testimonials, that would be cherry on top for building confidence in the company.
Company profile:- You highlighted 2-3 options of accounting outsourcing firms from Google. Now its time to ask for their experience in the industry. How long they have been serving, business model, size of the company, their company financial help. Don’t shy away by asking details of the business profile. Always go through to their websites for a better picture.
Desired Goal- Before contacting any accounting outsourcing company, first get your priorities clear. What services you want to opt-in. Either you just want outsourcing firms to handle your accounts or do taxation.
Here is the list which AcoBloom International suggests any client can take:-
- Year-end Accounting Services
- Management Accounting Services
- Outsourced Bookkeeping Services
- Taxation/Tax Services
- Payroll Services
Savings: The most important question to ask is how much you will save if you take outsourcing accounting service by any firm. Ask them to send you a proposal for it.
Data Security: Switching from inhouse to outsourcing may cause one major disadvantage of the data breach as you will provide your financial information to others which is not controllable by you. Always seek for the company who provides proper security measures to protect your data at any cost.
Ask what encryption methods they are using to prevent hacking. Are they using an SSL certificate on the system? What security measure company will take to prevent the third party from accessing the information.
Technically sound: Ask them to provide a list of relevant accounting software they use. What innovation they will bring to your project with technology. Will using that software help in saving costs?
Engagement Models: In accounting services, there are two types of models to understand roadmap.
- FTE model (Full-time equivalent): An FTE is dedicated to a client (140 hours in a month). Having infrastructure overseas with no overhead and rental cost gives a competitive advantage.
- Hourly Model (Pay as you go): This model is suitable for the clients who have lesser/ad-hoc volume of work and not sure of the amount of work they shall outsource. Under this model, clients are charged as per the number of hours consumed by them.
Free trial: It is always smart to ask for a free trial when your money and time is going to be invested. Free trials help you to clear confusion in your mind on how the company will work for you. It is important to take a note of your vendor’s security measures besides observing the services
You can also get 20 hours of free trial to all outsourcing services from AcoBloom International – Accounting Outsourcing Company In UK.