Outsourcing is no more a secret sauce behind the success of accounting practices in the UK, the US, Australia, Canada & New Zealand. Outsourcing especially for transactional and compliance services like bookkeeping, accounts preparation, management reporting, tax preparation makes sense in the current business scenario, especially in the UK accounting industry. When accounting practices outsource the compliance work to the team of experts having a decade of experience in the UK accounting process catering to varieties of UK accountants, they can safely trust their outsourcing vendor /partner /service provider and therefore UK accountants can focus on new business development and strengthening the relationships with their current clients thereby increasing revenue from both of their clients – new and existing. Also, this gives them the opportunity to spend more time on high revenue-generating activities like advisory, consulting & auditing.
From our decade of experience of providing outsourcing services to the UK accounting practices, partners, directors & owners shared their experience of having a hard time finding the required talent pool in the UK market in the accounting industry which has been a problem for some time. The reason for this they shared is –talent pool in the UK accounting industry considers the transactional/compliance work as ‘boring’ and just preparing accounts for their clients. They want to move to the consulting/tax experts which are more client-centric. Therefore, they see the value in outsourcing from the combination of the above perspective!
However, outsourcing has become strategic from two perspectives – one is competition in terms of quoting prices to accounting practices’ clients since it is highly likely the competitors might be outsourcing. The second is leveraging the benefits of outsourcing and providing value to your clients. But, the very important and rather more strategic decision is how to select the right outsourcing partner. In current times, there are lot of ‘outsourcing providers in the market’ to earn the margins only at any cost by quoting low! From our decade of experience in the UK accounting industry as an outsourcing service provider, we have seen many accounting practices in the UK, who had chosen the wrong outsourcing provider just considering the cost and not the quality, accuracy of work, future strategic relationship, turn around time and other key performance indicators.
Down the line, they realize that they had partnered with the wrong firm as they would hire inexperienced low-quality employees to do the work for earning ‘wafer-thin margins’ which would eventually result in a lot of quality, communication & TAT issues for UK practices. Therefore, selecting outsourcing partner is very important for the success in the mutual partnerships and costing should not be the only criteria while outsourcing, being the important factor for motivation of outsourcing.
Also, outsourcing is a great option if the accounting or CPA practice planning to migrate its process to cloud accounting. Xero, QuickBooks, SAGE, IRIS MYOB are widely used softwares when it comes to accounting. Cloud accounting solutions can streamline the process easier by giving more options to work at any location. Cloud accounting is beneficial to get real-time access to financial data available virtually, anytime, from anywhere.
Our clients came to us for cost and they stayed with us for quality and we grew together due to our scalability.