UK accountants are managing a number of competing problems. Demand for talent is at an all-time high, customers have high expectations and are increasingly price sensitive. With many new entrants to the market offering fully online services at lower rates, traditional ‘high-street’ accountants are under pressure to reduce fees. Advances in technologies such as cloud accounting software, Artificial Intelligence and automation require significant investment which many accountants struggle to achieve.
To remain competitive, many UK accountants are looking to outsource work, seeking to widen the range of services offered to clients, and make operations more cost-effective and efficient.
But where does an accountant new to outsourcing start when considering an offshore solution? This blog provides practical advice for UK accountants on how to implement outsourcing effectively.
Define clear objectives for your Practice and research the outsourcing market
Many accountants begin outsourcing work with the single objective of reducing costs. However, outsourcing work also helps build capacity, enables access to specialised skills and professionals, improves service delivery and strengthens resilience to regulatory changes. Aligning potential offshore partners to onshore priorities, whether to grow the number of customers or improve profitability, will help accountants make the most of a new outsourcing partnership.
Before entering into any outsourcing agreement, accountants need to research the market, check industry reputations and track records, obtain client testimonials, and understand the scope of services offered offshore.
Start small and measure progress
Accountants can test the outsourcing process with a small amount of work, such as digital bookkeeping, VAT return preparation or year-end accounts preparation. Outcomes can be evaluated for quality, technical accuracy, and turnaround against performance consistent with in-house targets. Many offshore suppliers, including Initor Global, offer a free-trial period, where accountants can test the service before entering into a contract. 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 when an unexpected backlog of work occurs.
One Initor Global customer is Alan Woods, the founder and owner of Woods Squared, who says: “I can understand why the prospect of overseas outsourcing feels daunting – we were certainly cautious at first, but by investing in the relationship and finding the right partner, we’re now so much more agile as a practice.
“For any accountants not convinced, using a pay-as-you-go model can be a really good way of testing the waters or dipping a toe into exploring how the right outsourcing partner could support your firm, both to alleviate immediate demand and to help you plan more strategically for the future.
Review data security arrangements
Accountants are nervous about transferring responsibility for data to an outside provider. They are mindful about any increased risk to their Intellectual Property (IP) and need to ensure an outsourcing partner has robust security measures in place and is compliant with relevant regulations.
There are many ways to share data securely with an offshore accountant – whether through a secure file transfer protocol server, by granting remote access to your server, or sharing files via cloud systems. Regardless of arrangements, the onshore accountant needs to be confident in the offshore IT and physical safeguards, such as anti-virus software, secure VPN connections, and 24/7 surveillance in place)
Initor Global ensures data security by using the most secure, advanced accounting software available with state-of-the-art systems and other physical safeguards to prevent the loss or misuse of data. We are GDPR and ISO 27001 compliant and use cloud-based solutions to ensure data cannot be downloaded, mitigating the risk of data loss or IP theft.
Client experience
Managing clients can be resource intensive, and mistakes can be made where expectations about the services to be delivered for the agreed fee differ significantly. An offshore accountant can manage the flow of communication with a client for the work they are responsible for, enabling the onshore accountant to focus on adding value to the client relationship. The best outsourced suppliers will adapt to the changing demands of UK accountants and their clients.
Conclusion
Most UK accountants looking to grow and thrive see outsourcing as an effective solution. Accountants can ensure they implement outsourcing effectively by following some simple rules to deliver the outcomes they need.
At Initor Global, we have been providing offshore services to accountants since 2006. Our customers include sole proprietors, as well as small and medium sized UK Accountancy Practices. Our outsourced tax, accounting and payroll services are suitable for all client engagements – from sole traders and micro businesses to SMEs and large companies.
How do I find out more about outsourcing?
If you are an accountant looking to outsource services, increase margins and help your client’s thrive, you can book a video call with one of Initor Global’s expert advisors using this link or send an email to [email protected].
We offer a free trial of up to 10 hours of accountant time and we promise to turn your trial work around within 72 hours.