What UK Accountants Really Think Before Outsourcing to India

For most UK accountants, outsourcing is not a decision they take without serious thought. Understanding what UK accountants really think before outsourcing accounting and bookkeeping to India reveals the complexity of this strategic decision.

Before choosing to offload any accounting or bookkeeping task, they have many discussions—about risk, quality, client relationships, and whether the cost benefits actually stand up.

This analysis honestly considers the issues UK accountants consider when deciding to outsource accounting and bookkeeping, the issues they encounter along the way, and what they tend to learn once they address those issues.

By understanding the issues at play, the UK business owner or accountant can make more informed decisions about this option.

Data Security & Client Confidentiality: The Most Pressing Issue Data security is at the top of the list of many accounting practices.

No question about it.

UK accountants work within regulatory parameters—GDPR playing the most significant role—and any process involving confidential client financial data warrants cautious contemplation.

Sending sensitive financial information to an external party outside a protected infrastructure prompts the following:
- queries about data security & storage
- concerns about unauthorized access & possible breaches

Fulfilling regulatory and professional guidelines is mandatory. The UK accountant is accountable to professional organizations such as the ICAEW or ACCA.

These organizations have specific standards relating to the distribution & protection of data, and accountability for failure—regardless of where on the planet it occurred—rests with the UK firm.

Therefore, if a decision is made to move forward with outsourcing, there must be detailed documentation on encryption, security & access criteria.

If there isn't, the discussion usually ends right there and then.

Don't forget client trust. In addition to the regulatory perspective, there is also an obvious impact on the work we do with the client's business.

Many UK accountant clients—especially small businesses—have very sensitive feelings about bookkeeping data being taken "out of house" and feel very uncomfortable about the prospect.

This is well understood by accountants.

Therefore, the internal discussion becomes the following:
- How can we communicate this effectively to clients?
- Will they be receptive to it?

Some firms have clients where every single one is fine once the advantages have been properly explained.

However, the possibility of push-back is high and best not left to chance.

UK Accountants' Cost Concerns About Outsourcing to India

Cost savings may initially look attractive, but for many UK accountants, the issue that really arises is
- What if the work goes wrong? Wrong entries, missed deadlines, reporting that is inconsistent with what clients expect?

Quality control issues are therefore a key concern, especially for practices with their PC bookkeeping workload operating at a high volume.

Consistency is king. Bookkeeping is much more than data entry.

It requires contextual judgment about the following:

- handling ad hoc or unusual transactions
- applying UK-compliant tax & VAT codes
- processing transactions & responses in a uniformly logical manner.

Handling work remotely presents its own unique set of challenges around the following:
- standards of consistency
- a need for processes that are precise in order to avoid errors.

Practice managers who have researched outsourcing solutions report their processes often not operating smoothly for a period of time, with "errors being made" while they learn how best to brief & coordinate the remote team.

This therefore becomes a cost center within the practice and takes planning & time that costs money.

Communication issues—why they matter Working hours are not the only factor that can cause delays in a remote relationship.

Time zone differences, delays in communication & misinformed expectations about response times & turnaround schedules can cause significant slowdowns that are not obvious until the relationship is well underway.

UK accountants planning to work to HMRC deadlines know very well how difficult ambiguity in communication can be.

The accounting practices that have figured out how to outsource successfully put huge investment into processes, operational checkpoints & structures for communication so that errors, delays & misunderstandings are avoided.

In effect, they build a system within the practice to minimize the chances of things falling through the cracks.

The 3rd Issue: Unknown costs & longevity There are obvious short-term & initial cost advantages of utilizing outsourcing—organizations often assume the long-term savings will follow.

However, seasoned UK accountants tend to look beyond those early savings to the hidden costs involved with transitioning to a new, more remote administration:
- management time
- leading the onboarding team
- moderating quality assurance reviews
- re-checks & re-submits

All of this impacts the financial benefits that may initially have attracted you to the idea.

Understand the hidden measures Some practices greatly overestimate the internal time management task involved in managing outsourced systems.

It can take:
- someone on the Practice team translating the work for the remote team
- additional management of reviews & queries
- ongoing relationship managers.

That person also costs the practice money.

And, as the practice expands, the level of effort involved with overseeing & managing remote assistants grows at the same rate.

Practices often comment that taking existing workloads outside of London typically works up to a relatively defined level & is less manageable as the practice grows & priorities become more complex & varied.

Consider an Alternative There are a number of UK practice owners who, with initial difficulties on the hiring side of the decision, now find that working through a UK recruitment bureau & outsourced assistant company, they gain better control.

These practices bring UK expertise in staff recruitment & operations to add value to the outsourced side of the practice, providing the following:
- Well-trained & dedicated staff
- complete understanding of the UK-based HMRC environment
- Local knowledge of the respective practice & the needs of its clients.

This enables the practice to avoid many of the risks associated with offshore outsourcing.

This approach may or may not be suitable for all practices, but it is certainly a choice worth serious investigation in its own right.

What UK Accountants Think About Outsourcing Decisions

- UK accountants gain assurance that the outsourced partner is GDPR compliant, handling all data securely & protecting their practice name at the same time.
- The UK practice will hold the accountable position with regard to professional body compliance issues—even when dealing with experts from the other side of the world.
- Financial margins may be impacted by hidden rework issues & retraining needs that reduce the nominal financial saving.
- Well-communicated policies on outsourcing tend to achieve client buy-in much more effectively than those that omit putting the communication plan into action before moving the task abroad.

- Working with UK specialist recruitment agencies & offshore assistant services helps to preserve the practice within the UK while still offloading some of the workload.

Summary: The decision to outsource accounting and bookkeeping tasks is complex & complicated within any UK practice.

There are legitimate & very real professional & regulatory & customer & quality constraints. Awareness of these issues will certainly better inform the process of decision-making and prevent costly surprises.

Practical & measured practices tend to navigate the concerns of accountants more gracefully & make better decisions based on what actually works & what works much less well.

Targeted UK-based staffing support can achieve many of the benefits that ultimately made outsourcing attractive without bringing the risks of offshore work.

Partnering with a UK recruiting and outsourcing specialist means you'll have access to a committed, knowledgeable support system—one who already gets your UK market, your compliance issues, and your clients' needs.

Exuberant Global partners with UK enterprises to deliver just the practical, down-to-earth backup you need—be it candidate search, virtual recruiters, or payroll support.

If your firm is being pushed to the limit in a saturated hiring environment, it might be best to get up to speed with something such as this earlier rather than later.