The month of January is the busiest time of year for accountants striving to help clients file self-assessment tax returns and pay any tax due. At the same time, many Practice owners are setting objectives for growth and profitability for the next 12 months. With employment costs and overheads expected to rise throughout 2025, developing a strategy to outsource work should be high on the list of things to do when accountants return to work in January.
Accountants considering outsourcing can start the process by asking some basic questions, including:
- Which services do we provide which can easily be outsourced?
- Which services are we looking to grow over the next 12 months?
- Where are my resourcing pain points?
- What are the main objectives of an outsourcing strategy?
- Which delivery model works best for my Practice?
- Are there offshore Providers who can help us execute an effective outsourcing strategy?
- Will outsourcing compromise data security?
With a growing number of options available through cloud accounting and automation, 2025 may be the perfect year for accountants to outsource recurring tasks and focus on the work adding most value to their Practice and customers.
Outsourcing is an essential solution for many accountants
Many accountants look to the experiences of competitors who already outsource work successfully. Larger Practices modernised processes and invested in technology to enable the provision of services by an offshore provider. This means they are well placed to scale and grow their businesses while manging costs effectively. With contracted turnaround times often measured in hours, end-clients also see the benefit of more timely information and statutory deadlines are met with time to spare.
Smaller Practices also secure benefits from outsourcing work. They are able to offer a wider range of services delivered by qualified professionals who are always available to tackle peaks of work or clear a backlog of tasks. Accountants no longer need to recruit their way towards growth and can avoid expensive mistakes if the wrong appointment is made.
Initor Global customers consider the main benefits of outsourcing work to be:
- reduced costs and overheads
- access to a stable team of professionals
- increased quality and consistency of work
- better turnaround times
- improved client experience.
Services which can easily be outsourced
Accountants are under pressure to deliver more services at a lower cost to attract new customers and avoid losing customers to competitors. By outsourcing recurring tasks such as monthly bookkeeping, payroll, quarterly VAT returns and year-end accounts preparation, accountants will find more time to spend with customers understanding their needs and adapting services accordingly.
With the introduction of Making Tax Digital for Income Tax (MTD IT) for certain taxpayers from April 2026, the submission of data each quarter to HMRC offers a good opportunity to start outsourcing recurring work which carries a significant risk of a deadline being missed. Outsourcing work also creates capacity for accountants to look carefully at their customers and identify those most a risk of non-compliance with HMRC requirements when MTD IT is introduced.
Outsourcing can handle many of the administrative tasks involved in taking on clients, such as registering information with HMRC and Companies House and submitting required documentation. Outsourcing such work creates the capacity for in-house accountants to understand the needs of new clients and risks associated with the engagement.
The ongoing management of clients can be resource intensive, and mistakes can be made where expectations about the services to be delivered for the agreed fee differ significantly. The outsourced accountant can manage the flow of communication with a client for the work they are responsible for, enabling the UK accountant to understand any change in the risk profile in clients individually or collectively.
How offshore Providers can help execute an effective outsourcing strategy
Outsourcing work allows accountants to look carefully at the resources needed to deliver their objectives. This may involve increases in client numbers, delivering more specialist services or securing better profitability. Outsourcing work secures immediate savings through lower employment costs, which are typically 50% less than a UK resource. 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.
Accountants who implement outsourcing successfully are comfortable with innovation and delivering change. Integrating the outsourced accountants into training, team meetings and other staff updates which helps build relationships and contributes to the overall culture of a Practice.
The offshore accountant can help review internal systems and processes to integrate their work into the onshore accountant’s operations. Workflows can be updated to track the progress of work outsourced and that delivery is in accordance with the terms agreed.
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. Investing time with the individuals provided by the outsourced partner will introduce Practices to new ways of working, a different mindset for delivery and a more cohesive business.
Preserving data security
Protecting client data and Intellectual Property presents a significant risk to any accountant regardless of Practice size. When engaging an outsource supplier, the onshore accountant can mitigate these risks by reviewing internal systems and processes to ensure data can be transferred securely. This usually involves the outsource supplier accessing client servers using secure login arrangements. If this isn’t possible, most outsource suppliers use secure file hosting services or password protected documents, though risks of data breaches may increase where high volumes of client information are exchanged.
When outsourcing work, the UK accountant 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.
Internal policies and procedures will need to be updated to cover the tasks undertaken by the offshore accountant and the nature of data processed. Some accountants decide the offshore accountant should see only limited amounts or anonymised client data; others decide the offshore accountant needs full access to client information to work effectively. Including the offshore accountant in any training or staff can helps ensure awareness of the continuing risks around data security and the action required in the event a data breach occurs.
Conclusion
Using an offshore supplier is increasingly becoming the normal way of doing business for UK accountants. Outsourcing work helps support delivery of core business objectives, improves profitability, and helps Practices scale and grow.
Initor Global’s outsourced tax, accounting and payroll services are suitable for all client engagements – from sole traders and micro businesses to large companies.
If you are an accountant looking to outsource services for the first time, 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 hello@initor-global.co.uk.
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