Is outsourcing really a sensible option?
Businesses are continually looking at ways to implement initiatives which save both time and reduce costs. If we look solely at accountancy firms, over the past 3 years there has been a major push towards outsourcing, using third parties to complete many of the day-to-day tasks required. Often this will be to individuals or companies located overseas, who can provide very low service costs and often will turn the work around with 24 hours.
However, is outsourcing really a sensible option?
One of the key benefits associated with outsourcing is that an accountancy firm can take on extra clients without having to employ more staff. Often utilising companies located overseas where fees are very competitive. Companies can access skilled staff who are readily available to work on projects resulting in speed and efficiency, whilst also lowering costs and increasing profits.
Day-to-day activities that can be outsourced include bookkeeping, VAT returns, accounts payable, accounts receivable and preparation of financial statements.
So, if outsourcing can seem so advantageous why is it not a model adopted by all?
Upon initial review this model may seem to hold many advantages, but the negatives are far more apparent.
- Loss of control – outsourcing overseas means less visibility of day-to-day activities which could lead to basic errors being made where these mistakes are then passed on to the end client.
- Communications – using outsourced workers where English might not necessarily be the first language can bring issues. Combine this with different working time zones and reliance on virtual meetings where work is assigned, again errors can quickly arise. Translating what work needs to be completed can turn into a problem where misunderstanding and incorrect work delivery is experienced.
- Security – by using a third-party company a business has little control over what they do with very sensitive client data, if data is compromised then the UK accountancy firm will be at risk of investigation and potential regulatory fines.
As an accountancy firm do we outsource?
No, it is not an operating model which we feel comfortable with. For us it is very important that all our team members are located in the same location, that they fully understand what is expected of them and that our clients are provided with continuity, no matter who they speak with. We have full operational transparency and every staff member is fully trained to ensure that they uphold our core business values with everything they do. We all understand and appreciate everybody’s role in the business, we all use the same technology and business processes, we are all focussed on providing an elite customer experience. We feel none of this is possible with an outsourced business model.
Should you have any questions regarding any aspects of business accountancy then our team can offer both help and support. Please call us on 01173 700 079 or e-mail hello@steppingstonesaccountancy.co.uk.
You can also book a free 20-minute call with Yarka – https://calendly.com/yarka-ssa/20min