Have you ever tried to clue anyone on accounts outsourcing? Why do it? Rise up to the challenge by getting the basics right. Rather than thinking how it is nothing more than a simple cost cutting opportunity, use this sound information to usher yourself and anyone else into the accounts outsourcing universe.
What’s accounts outsourcing?
Accounts outsourcing is when accountants contract out niggly compliance processes to an outsourcing company to perform for them. This is done with the objective of increasing capacity, expanding business, meeting staffing shortages, and improving profitability.
It’s a revolution that happened silently after the economy took a turn for the worse in 2007. Accountants (amongst other businesses) who could no longer afford the fixed costs of a large workforce felt it crucial to hire professionals on an ad-hoc basis. Demand for a flexible workforce - without the costly overheads - rose and that’s where accounts outsourcing came in.
So instead of growing by taking on more staff, accountants started expanding through outsourcing.
With the shortages of skilled accountants still being felt, it’s likely that the state-of-affairs will remain the same.
Accounts outsourcing is similar and different to doing the work in-house
Imagine being able to avoid growing pains by utilising external expertise available from outsourcing companies. So instead of spending billable time on compliance tasks, your in-house staff is focusing on delivering higher fee earning work, building and maintaining client relationships and growing the practice. When you outsource the rest, you get time to do what you do best.
Right! But is virtual as good as real?
As real as your own team. Years ago, communicating was much more challenging. Today there are a variety of instant communication tools such as video conferencing, Skype, GoToMeeting to make you feel like your outsourced team is sitting in a room next door.
Wonderful, is it safe?
An outsourcing process is safe because it is done remotely on your workstations. It does not involve work leaving the UK. You data is accessed on your computer – it’s how everything is kept safe.
Now wait for the next time one of your accounting colleagues or competitors brings up the topic of ‘accounts outsourcing’, ‘overflow work’, ‘cost arbitrage’, ‘profits’, ‘secure processes’ and ‘staffing shortages’. And try to put up an honest smile when their business problems are bigger than yours.
My name is Vishal Kurani, the author of the QXAS blog and I appreciate you stopping by! I help accountants gain Accounts Outsourcing knowledge through my easy to follow blogs and guides. Download my free guide "The Accountants Guide to Making Payroll Profitable" to learn how to make payroll profitable for your accountancy practice.