Outsourcing is fast becoming the secret weapon of successful accounting firms, but still hesitancy exists – primarily due to inaccurate or misleading preconceptions.
In this article, we debunk the most common myths surrounding outsourced accounting.
Myth 1: You lose control of your business
The beauty of outsourcing is you control the tasks being performed by your provider and these are generally limited to transactional tasks, not client service tasks.
A reputable outsource provider will have a secure portal that allows you to assign specific tasks, track progress and communicate directly with the people doing the work for you.
Myth 2: Outsourcing is just a cost cutting exercise
Of course, with outsourcing you do achieve lower operating costs, but you also get the benefit of an extensive pool of talent that can be accessed as needed.
If you need to scale up quickly, your outsourced provider can usually provide you with the additional ‘arms and legs’ you need quickly so your firm doesn’t miss a beat.
Myth 3: There is a lack of product or service knowledge
Outsourcing is more than just the management of specific tasks, it’s about a provision of services performed by qualified accountants with the expertise needed to ensure accuracy and quality.
If in doubt, ask your potential provider about the qualifications and experience of your outsourced team.
Myth 4: Outsourcing is only available to big business
It’s not just big business that can benefit from outsourcing.
Small and Medium businesses also engage outsourced services, particularly as their lower headcounts and lower operational budgets mean they need may need to rely on third party help to ensure they can maintain top quality service for their clients.
Myth 5: Privacy and security is compromised
While your outsourcing should be more concerned with retaining your business long term than putting the relationship at risk with potential privacy and security breaches, the ISO 27001 certification provides an additional level of protection for both accounting practice and outsourced provider.
Look for an outsourced company with the ISO 27001 certification to ensure you and your clients data is protected.
Myth 6: Delivers lower quality service and outputs
The primary objective of an outsourcing provider is to ensure quality and integrity in their outputs to clients – otherwise their unlikely to have that client for very long.
Many outsourcing companies will only employ qualified and experienced personnel, and some also offer a quality control check as part of their process to ensure all work performed on your behalf meets the highest possible standards.
Myth 7: Outsourcing is unethical
In many Western countries, offshoring has become a dirty word that is nearly synonymous with job loss – but also there is concern for the welfare of the outsourced workers.
People are concerned for the conditions that the outsourced workforce is working under, and they are concerned for the relatively low pay that they receive.
The reality is the outsourcing workforce in India is paid very well compared to other members of their community and the economy as a whole. And India, through its labour laws protects the rights of works who are formally employed.
Myth 8: Outsourcing is complicated
In the age of the internet and communication, businesses can access data from any part of the globe, often in real time.
Your outsourcing company will guide you through the set-up process and once everything is up and running, working with your outsourced team is simple through online communication portals.
Outsourcing has become a major player in the accounting industry over the last few years and its popularity shows no signs of slowing down any time soon.
For firms who want to reduce costs, scale their businesses and add more value for their clients, engaging with a reputable and experienced outsource provider could be a game changer in the future success of their practice.