Use Outsourcing to Reduce Overheads and Increase Flexibility

Cost Efficiency

With an outsourced solution accountants simply pay for the services they need when they need them. Testing the outsourcing process with a small amount of work, such as digital bookkeeping, VAT return preparation or year-end accounts preparation allows accountants to compare the cost of outsourcing to a traditional, in-house solution. The high cost of in-house recruitment and other overheads such as salaries, pensions, employee benefits, employer national insurance and professional training are avoided with an outsourced option.

Using an offshore supplier can reduce overheads by around 50% compared to an in-house solution.

Flexibility

Scaling a practice up or down takes time when services are delivered by full-time staff. Investment in technologies such as Artificial Intelligence, cloud accounting and automation of tasks means Practices can scale and grow without taking on the additional risk and costs of direct employment. Lengthy recruitment processes and the risk of the wrong appointment are avoided. 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.

Expertise and Quality

Accountants usually seek to grow their practice using directly employed professionals. Trainees are employed using professional contracts and, over a period of years, successfully complete their studies to become chartered accountants. Many follow specific career pathways such as tax, audit or management accounting and support practices looking to attract clients in these areas. Using in-house staff in this way helps grow an accountant’s specialist reputation but can limit the experience of individuals as client needs change.

Trainee accountants may feel their career goals are not being achieved if their role involves recurring tasks such as bookkeeping, VAT or year-end accounts preparation. By outsourcing tasks such as monthly bookkeeping, payroll, quarterly VAT returns and accounts preparation, accountants create capacity to spend more time with customers, understanding their needs and adapting services accordingly. Individuals can focus on their continuing professional development and building the skills needed for the future growth of a practice.

There are further advantages to outsourcing work including access to a wide pool of talent and experience, who are always available to meet peaks in demand for services and to clear backlogs of work. Professional expertise is always available using an offshore resource, particularly where in-house skills are insufficient to meet the changing needs of clients. The consistency and quality of work is also improved, securing the benefits of better productivity and focus on recurring tasks.

Client Service

Using directly employed professionals to contact clients undoubtedly helps embed relationships and enables effective oversight of client needs. Any issues raised by a client regarding the progress of work or collecting fees can be resolved quickly using a directly employed member of the onshore team.

Accountants understand client expectations are high, and rapid responses are expected whenever a query is raised. Where client numbers are growing quickly, backlogs of work can emerge, and clients may feel they are not getting the level of support or response they expect.

Using an offshore accountant means faster turnaround times, more consistency in the accuracy and quality of work, and the ability to take on more clients with confidence. The best outsourced suppliers will quickly adapt to the changing demands of accountants and their clients.

Outsourcing vs In-House: Which Is Best for Your Practice?

Choosing between outsourcing and building an in-house team is a key strategic decision for UK accountants. With rising costs, shifting client expectations, and seasonal peaks in workload, the right choice can make the difference between a practice 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 and meeting client needs while outsourcing recurring and deadline driven work. Outsourcing reduces costs, increases flexibility, and allows accountants to focus on high-value client work, enabling practices to stay competitive.