Outsourcing for Accountants - Is It a Wise Choice?

Introduction

The outlook for the profession of accountancy in the UK is tighter than it has ever been. Outsourcing for Accountants – Is it a wise choice? This question has become increasingly relevant as practices face mounting challenges.
Practices are faced with greater demands from deadlines, increasing expectations from clients, and the ongoing battle to hold on to good employees - all while trying to keep their businesses profitable.

Outsourcing for accountants has become a convenient answer to this situation, and the question many practice owners are contemplating is whether it truly pays off.
This article reveals the actual benefits of outsourcing accounting work, discusses the fears that hinder practices, and reveals how working with a professional offshore team can unlock your practice's potential.

It's not just about saving money. It is about working smarter.

Why UK Accountancy Firms Choose Outsourcing

The practice of outsourcing is not a practice-driven phenomenon - it is driven by common-sense, levels of expertise, costs, and a lot of other practice research carried out by accountants.

Across the UK, the shortage of accountants has made even the most talented ones scarce and all too expensive.
Therefore firms are more often than not stuck in a situation wherein raising their fees may not necessarily be feasible while the costs of day-to-day operations keep rising.

The skilled workforce has shrunk

  are unable to fill job vacancies - not because talent is not out there, but because even the most capable of candidates are over-burdened.

Firms do not have the luxury of time, money, or the added temptation of hiring and keeping a team of full-time, permanent employees.

Connecting with a professional firm such as Exuberant Global from New Delhi, India, provides immediate access to a large skilled workforce for UK accounting firms without the hassle of recruitment.

It's been 11+ years experience specifically serving UK practices and understands their needs and underpinnings - from technology, processes, to accounting standards.

Flexibility without freeze-ups

One of the benefits of outsourcing that is often underestimated is the flexibility it affords.

Your practice is naturally going to have a fluctuating client base with busy and sleepier times of year.

Having a full-time team available to provide your practice with the additional help during the peak times can be expensive and somewhat redundant outside of those times.

Partnering with an outsourcing organization enables practices to adjust their resources to match their actual workflow throughout a year, providing part-time support during the fallow months and building up to a considerable increase when needed.

This kind of agility proves to be arduous to mimic through a series of cost-efficient hires.

Why and What Services Can Be Outsourced?

A misbelief among many practices is that outsourcing can only be used for accounting entry-level jobs.

In fact, an offshore practice that is well-equipped and trained can perform a far higher number of responsibility-heavy functions - and perform them well.

The responsibility-heavy accounting functions that outsource well

Bookkeeping - the easiest to outsource, for various reasons.

It is repetitive and time-consuming and does not necessarily need an accountant in-house.

After this, practices are outsourcing the production of accounts, tax work, financial reporting, and payroll.

Accounts payable and receivable management works well with remote delivery also particularly when the processes are defined in the beginning.

In the case of Exuberant Global, they have provided all the above services (amongst others) to UK accountancy practices and their team has experience with all of the software solutions used by UK accountants - from Sage to IRIS to Xero and many more.

This has relevance because they have no prolonged onboarding process, and the team can fit themselves readily into your practice processes.

Quality assurance need not be compromised

The fear among many practices is that the standard of work produced by a remote practice can be compromised.

Fortunately, this is not always the case and a provider who has defined procedures, established communication lines, and proven quality measurements would be able to meet your expectations.

Exuberant Global has put together a service-specific operational guide which they follow 100% of the time.

Indeed, they have been operational for over 11+ years developing processes, procedures, and collaboration techniques specifically for UK clients' needs that form the crux for delivery and quality assurance.

Addressing Valid Skepticism About Outsourcing

The knowing skepticism about any and every decision to go ahead with a third-party provider of services should be lauded.

This is a sign of astute thinking and not dismissiveness.

However, some of the more common arguments - concerning confidentiality, communication, and control - merit an honest look.

Confidentiality and data security

A huge concern for practices when considering an offshore practice should be protecting client data.

Any agreement with an outsourcing practice should always specify the security measures taken to safeguard data, confidentiality clauses, and compliance regulations.

The reputable practice of Exuberant Global operates with extreme security measures in place and understands that strict confidentiality and best security practices must adhere to regulations, which include GDPR, and recommendations by professional bodies such as the ICAEW and ACCA.

It is not at all unreasonable to seek detailed information prior to completing an agreement about where data resides, who can access it, and the steps taken to ensure confidentiality.

Time zones and working practices

Many owners dismiss outsourcing owing to the time difference, however this is not always the source of headwind that most practices find it to be.

Indeed, practices such as Exuberant Global take great pains to align their working hours with that of their clients in order to be available cross-border communication.

As well as using collaboration tools, like Teams and Slack, most practices that work with a remote company maintain regular contact so that workflow is always managed efficiently.

The best approach is to have clearly laid out processes before you start working together and have scheduled conference calls to stay aligned with one another.

Summary

- Outsourcing is not a way to save money in the short-term but is instead a way to optimize time, practices, and efficiency.
- Processes such as bookkeeping, tax, payroll, and financial reporting can be delivered efficiently by a third-party vendor.
- Practices, like any other time and cost-sensitive organization, will benefit greatly from the flexibility outsourced labor can provide.
- Confidentiality and data safety are concerns that, when partnered with an informed, compliant organization, can be substantially mitigated.
- Exuberant Global brings 11+ years of experience in serving UK accountants in all their processes, always using software familiar in UK practices.
- Outsourcing is an effective strategic enhancement to practice profitability and growth, rather than a cost-cutting necessity.

In Conclusion

Involvement of outsourcing in the practice is not a luxury but a strategy growing exponentially among UK practices.

It combines quality talent, low costs and flexible processes in a way that genuinely works for practices of all sizes.

The firms that are against it usually do so out of routine or to avoid a reasonable fear, whereas those that have embraced it tend to find that capacity quickly increases, stress levels drop and they can actually grow.

Over more than 10 years Exuberant Global has demonstrated that outsourced accounting support services can be of a very high standard, handled securely and really be tailored to UK practice requirements.

Whether you need an external resource from time to time or a permanent remote workforce, the infrastructure, skills and experience are in place already.

The real question is not does outsourcing work - but can any practice afford not to?

FAQ

What are the real benefits of outsourcing accounting support services to a UK practice?
Many smaller practices do not have the budget for a full complement of dedicated, permanent employees and are often overwhelmed by the sheer volume of work.

Outsourcing enables smaller practices to access a well-run, highly skilled workforce without the overheads of salaries and pensions.

Whether outsourcing can be used for the mundane day-to-day tasks such as bookkeeping or payroll processing or to free up critical resources for developing relationships with clients and providing advisory services that actually grow a practice in the long term, the savings are significant.

Is the personal data of my clients safe if I outsource to a foreign provider?
Data security is of extreme importance and any reputable outsourced service will recognize that.

Exuberant Global employs rigorous confidentiality management procedures, convenient secure data transfer methods and an understanding of GDPR compliance issues.

Practices should, however, ask for safeguard assurances and security policies and procedures documentation from any firm they in turn outsource with and will want a watertight NDA in place from day one.

What accounting packages is Exuberant Global familiar with?
Full familiarity with the range of standard operating systems used by UK companies can mean that no adjustments need to be made to the firm's processes, or indeed a change of software, which some practices see as riskier than outsourcing itself.

Exuberant Global can integrate seamlessly with Xero, QuickBooks, Sage, IRIS and other standard financial accountants.

Can I outsource for only part of the year, say only during busy periods like self-assessment?
Yes - this is where outsourced support really scores and tailors to individual firms' needs.

Outsourcing support can be sought for as short or as long a period as desired, so in the
self-assessment peak, for example, an additional pair of hands can be called in to lighten the workload and taken away once clients are satisfied.

This could be in the form of a part timer or full time remote company secretary and bookkeeper extension for the entire busy 6-month tax season, or on an ad hoc basis during particularly busy cycles.

What is the practicality of telecommuting, avoiding huge time differences?
The extremely serious and growing issue of significant time difference can be managed well, and many outsourcing providers will adjust working hours to suit their UK customers.

Whatever communications software is in place, a busy posting schedule and occasional real-time conference calls can be established to ensure lines of communication remain open, straightforward and instant.

While great patience is required, following a preparatory stage, many firms find that the working flow feels natural.

How long does it typically take from the start to establish a remote service?
The speed of implementation depends on a range of factors, but proactive firms with systems and procedures in place tend to deploy quickly.

While there is generally some transition period, experienced 3rd party providers who are accustomed to working with UK clients are able to get running with little delay in a matter of weeks.

The greatest delays come from unprepared workflows and internal procedures, so the clock starts ticking when the firm is ready.