Cost & HR Benefits of Outsourcing for Accountancy Practices

Lower Staffing Costs

01. Recruitment fees and onboarding expenses

Many accountants outsource services to avoid the investment needed in recruiting and onboarding new entrants to the business. Outsourcing work means they no longer need to recruit to achieve growth, and expensive mistakes are avoided if the wrong appointment is made. Engaging a specialist recruitment agent can be expensive, with fees of up to 25% of a new employee’s salary typical of the amounts charged for roles where demand is high. The internal cost of onboarding a new team member is often overlooke

Offshoring services offers ready-made solutions for accountants looking to increase capacity without breaking the bank. Accountants no longer need to recruit their way towards growth and can avoid expensive mistakes if the wrong appointment is made.

02. Reduced employer’s national insurance, pension, and holiday pay obligations

From April 2025, the UK government increased both Employer’s National Insurance and the national minimum wage, placing more financial strain on accountants. To mitigate the increase in Employer’s National Insurance, accountants are looking carefully at their workforce plans and adjusting roles and responsibilities accordingly.
In-house staff are usually entitled to additional employment benefits, including the automatic enrolment into a pension scheme with contributions from the employer and paid holiday. Some employers offer wider benefits which can amount to more than 20% of the base salary paid to an employee.

This is where outsourcing comes into play. By entering into a fixed contract, accountants can plan their future cash flows effectively and reduce overheads.

03. Access to skilled professionals at a fraction of UK salaries

UK accountants looking to manage costs effectively find outsourcing work offers a ready-made solution. By outsourcing work, accountants can access a global pool of talented professionals, increase productivity and efficiency, and improve customer service.

Offshore suppliers can help accountants fill roles across all types of accounting work, including bookkeeping, year-end accounts preparation, company tax, payroll, VAT accounting, personal tax, and secretarial services. Systems and processes to complete work are highly efficient with rapid turnaround times. The best outsource supplier can prepare records and transfer data in real-time using cloud accounting software.

Outsourcing work secures immediate savings through lower employment costs, which are typically 50% less than a UK resource.

Flexibility to scale based on client demand

Outsourcing work offers access to a global pool of resources to help address peaks in work or remove backlogs. Accountants have flexibility to commission resources when they need them on an ad-hoc (pay as you go), half time equivalent or full-time equivalent basis. There is no need to enter into a long-term contract, and the risks of overstaffing are avoided.

Investment in new technologies such as cloud accounting and automation of tasks means smaller Practices can introduce outsourced partners into their day-to-day operations with the minimum of disruption. This allows Practices to scale and grow without taking on the additional risk and costs of direct employment.

Reduced Infrastructure Costs

With an outsourced solution, accountants find there is no need to invest in additional office space, furniture and equipment. Overheads such as utilities and administration costs are reduced. The outsourced provider is responsible for recurring costs such as software licenses and unexpected costs such as downtime caused by a technology failure. Most outsourcing providers include IT infrastructure and service guarantees as part of their standard contract.

Less Time Spent on Recruitment and HR

While larger accounting practices have access to professional HR resources and advice, smaller practices often struggle to keep on top of their legal responsibilities when recruiting staff. The recruitment process is often undertaken by accountants who may have no experience at all of implementing an effective recruitment strategy.

When a new employee joins a practice, they expect a clear pathway and support towards their career goals. This will often involve incurring the costs of professional qualifications and subscriptions, continuing professional development and other ad-hoc training.

Using an outsourced solution removes the burden of:

• Interviewing and vetting candidates
• Conducting performance reviews
• Managing payroll, leave, and employee disputes.

There are further benefits through accessing a ready-made pool of talent and expertise without the investment needed to manage a full-time resource.

Improved Staff Retention

Outsourcing allows accountants to look carefully at the career paths of individuals, ensuring they shift focus away from recurring tasks and are able to develop the wider skills needed to meet the needs of clients.

If one accountant is responsible for all recurring tasks such as bookkeeping, payroll and accounts preparation, this places a Practice at a high risk of losing valuable expertise. An outsourced accounting solution can be used flexibly to help smooth any changes in the workforce and ensure resilience to any employment pressures. It can also benefit morale among accountants by contracting out recurring tasks and enabling the professional development of individuals.

Accountants outsourcing services find staff retention improves through:

• Creating capacity to focus on client-facing and advisory work
• Increasing job satisfaction though outsourcing mundane, repetitive tasks
• Reducing stress and burnout among core team members.

Access to a Wider Talent Pool

Using an offshore resource frees up capacity for onshore accountants to focus on adding value to the business and the customer, understanding their needs, and delivering better outcomes in terms of quality and turnaround times for work. It also enables accountants to:

• Tap into global expertise, especially in areas like digital bookkeeping, tax calculations, and accounts preparation
• Fill skills gaps quickly without lengthy training periods.

Data Security and Business Continuity

When looking to engage an outsource supplier to process client data, the onshore accountant should review internal systems and processes to ensure data can be transmitted and received securely. This usually involves the outsource supplier accessing client servers using secure login arrangements. If this isn’t possible, most outsource suppliers use secure software file hosting services or password protected documents, though these may not be sustainable where high volumes of client data are exchanged.

Accountants should always seek confirmation about any GDPR, or data security credentials stated by an offshore accountant. They will also need to understand the operational procedures established by the offshore accountant to ensure data security and complete a risk assessment accordingly.

Outsourcing work can also mitigate any risks around business continuity. Turnaround times for work are contractual, and work can be completed across different time zones. Outsourcing work also reduces dependency on in-house resources, especially when seasonal peaks of work arise.