Thinking of Outsourcing Accounting? Consider These 3 Things First

Many accounting firms are facing the global challenge presented by the risks of compliance and digital disruption. Moreover, they are also struggling to keep up with the competitive industry.

Outsourcing is one way to help you refocus your business and add value to your clients. It lets you pay more attention to revenue-generating activities and have your service provider take care of process-driven tasks.

Before diving into the pool of outsourcing accounting, here are three things that your firm should take note of:

  • Overall Business Goals

The primary strategic consideration when it comes to outsourcing should be focusing on how it aligns with your business objectives. The services you will be outsourcing should match your business outcome expectations. Remember that outsourcing is meant to help improve your focus on core business functions while leaving the operational processes be managed by skilled professionals. Improved efficiency and access to expertise are among the strategic goals that your firm should focus on. Therefore, you should prioritise the optimised business performance that you will gain before realising the potential cost savings.

  • Cost and Value

Some firms refuse to outsource because they were made to believe that it is expensive. Truth is, outsourcing is meant to save you money. When it comes to business, cost and value are two different things. Instead of asking how much will it cost you to outsource, think of how much it will benefit your company.

According to professional services network PricewaterhouseCoopers (PwC), the benefits of outsourcing basically falls under two categories: cost efficiency and risk mitigation. Outsourcing reduces your costs associated with incomplete returns and the risk related to non-compliance.

  • Service Provider

Finally, you need to consider which outsourcing company has the solutions to fit your needs. When choosing a service provider, check for factors like expertise, competence, and experience. It should have the knowledge and skills required for the services that you will outsource. Also, the company should have a good reputation in the industry. Check for testimonials from existing clients in order to gauge its ability. Don’t just go for the one that offers the lowest price; go for the one that gives the most competitive offering.

Outsourcing is a big decision, so your firm should analyse carefully these things in order to grow and capitalise on its benefits.

The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 896 522/0800 452 853, and download our e-book.