Accounting industry has been evolving rapidly especially during COVID-19 pandemic. With market competition across the industries, getting new clients onboard is like snowed under. As a strategy, organizations are leveraging accounting outsourcing services as a smart business move to get practical advantages of it, cost-cutting being one of them. USA CPA firms and UK accounting practices have chosen accounting outsourcing services in India due to the advantages of hiring an accounting & tax outsourcing partner, although outsourcing is not something very new. The directors, owners, CEOs, CXOs of the accountancy practice in the USA & UK take outsourcing as a profit alternative a lot lately than other services industries like IT and HR.
Companies are choosing India because of the easy availability of the talent pool required in the finance and accounting industry. Also, In India, the number of English speakers are more than the combined population of the UK and the USA. Due to the COVID-19 ongoing pandemic, the growth has not been much encouraging last year and has almost become stagnant not even in developing countries but also in the developed ones.
To save every resource, companies are opting for outsourcing to optimize the cost by outsourcing the compliance & back-office work like bookkeeping & VAT, management accounting, taxation preparation to the experts in another part of the world. CPA firms in the USA and UK accounting firms can outsource work like VAT & bookkeeping, year-end accounting, taxation, payroll and other compliance work to save up to 60%. But before signing the agreement, it is important to know if the accounting outsourcing firm is the “right-fit” for your accounting organisation.
Below are the quick 5 points on going through the process helpful for accounting firms in the USA and the UK, before signing the agreement with their strategic outsourcing partner:
Always check the background of the potential accounting outsourcing firm you want to partner with. There are a lot of outsourcing companies in India that are running their business without having much experience in accounting. Those firms can be a potential risk to your business and valued clients. Ask about the data security, the working experience, background of the experts who shall deliver the work, review process, etc.
Always ask for the testimonials of the company’s previous clients and that too video one. Just getting the email address of the current clients of the outsourcing partner is not enough. To get authenticity and confidence, video testimonials show clients’ trust, satisfaction and happiness with their outsourcing partner.
Don’t get lured by cheap rates
It would not be wrong to say that the major motivation any company would get to choose to outsource over inhouse activity is cost-cutting. But the low rates for accounting/tax services are not always best in the interest. Accounting outsourcing companies in India will maintain the perennial relationship with your company by providing the best quality. Your outsourcing partner should be willing to give you more than just saving margins. The main focus of any CPA & accounting firms should be to get quality delivery.
Data security is the biggest concern for any company. In the accounting industry, data gets more confidential and sensitive. Ask your potential accounting outsourcing partner about the data management and backup plan mechanism. Check for their physical as well as a digital ecosystem on how they will handle sensitive data of clients.
Resource and technology
It is important to be aware of the resource and skill set you want from your outsourcing partner. Check their team’s expertise in cloud accounting services. Have a good discussion on the expectation of the workflow, transition and the ongoing delivery. Ask your partner about which cloud-based softwares and the technology they use and how much expertise the team carry.
You can also read: Checklist for hiring an accounting outsourcing company
Outsourcing can boost your business growth and efficiency. Feel free to contact AcoBloom International for faster, efficient and accurate accounting & tax outsourcing services. We have the requisite skills and experience to provide complex business solutions in terms of providing Accounting, Taxation & Payroll services to accounting firms as our clients, in the UK & USA.