How Offshore Accountants are helping to solve the Talent Crisis

The Rise of Offshore Accounting

Outsourcing means engaging a third party to deliver services usually provided by an internal resource. For UK accountants, offshore outsourcing often covers:

• Bookkeeping and management accounts
• Payroll and VAT returns
• Year-end accounts preparation
• Company tax and personal tax work
• Secretarial and compliance services.

The most common destinations for outsourcing are India and Asia, where firms can access highly qualified, English-speaking professionals at a fraction of the UK cost.

Outsourcing services offers significant benefits. Productivity and delivery of services is improved and there are immediate savings through lower employment costs. There are further benefits in accessing a ready-made pool of talent and expertise without the risk of employing a full-time resource. Backlogs of work can be cleared, and recurring peaks of work managed. Outsourcing services allows the onshore team to focus on core business objectives, such as winning new customers, increasing service lines and adding value to the business.

There are of course some risks when engaging an offshore supplier. Some accountants perceive difficulties in tracking work or feel data security is compromised. If the outsource supplier doesn’t deliver under contracted terms, the onshore team may find themselves working to rectify errors or omissions or dealing with an unhappy client.

The Benefits of Offshore Accounting

01. Access to Global Talent

Outsourcing work allows accountants to look carefully at the resources needed to deliver objectives, such as increasing client numbers, delivering more specialist services or securing better profitability. Outsourcing recurring tasks such as bookkeeping or payroll gives accountants more time to focus on client relationships, strategic advice, and business development.

There are further benefits in accessing a ready-made pool of talent and expertise without the risk of employing a full-time resource. This means accountants can bypass any local talent shortage entirely.

02. Cost Efficiency

Outsourcing work secures immediate savings through lower employment costs, which are typically 50% less than a UK resource. Recurring costs of training, continuous professional development and employee benefits are also avoided when an offshore resource is engaged. Initor Global customers have the flexibility to commission resources when they need them on an ad-hoc (pay as you go), half time equivalent or full-time equivalent basis.

03. Scalability

Scaling a practice up or down takes time when services are delivered by full-time resources. Lengthy recruitment processes and the risk of the wrong appointment are avoided by outsourcing. Where a practice is looking to downsize, contracts with an outsourced supplier can be terminated in a matter of weeks and in a structured way, removing the need to implement redundancy processes or statutory consultation with employees.

Accountants can also choose to access offshore capacity as and when they need it by using a pay as you go service. This maximises the flexibility to use an offshore option at peak periods or where a backlog of work needs to be cleared. This flexibility enables practices to grow without the long-term cost and risk of extra headcount.

04. Improved Client Experience

Accountants often seek to increase the number of clients through competitive pricing, though overlook opportunities to provide professional insight and data. By outsourcing tasks such as the preparation of VAT returns or year-end accounts, accountants can create additional capacity for more direct contact which adds value to the client relationship. Outsourcing work enhances these contacts by delivering services with improved turnaround times and higher quality.

Why Offshore Solutions Work for UK Accountants

Choosing between offshoring work and sourcing local talent is a key strategic decision for accountants. With a continuing talent crisis, offshoring work can make the difference between a business that struggles to keep up and one that runs efficiently and profitably. For many accountants, the optimal model involves using in-house resources to focus on business growth while outsourcing recurring and deadline driven work.