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Overcoming barriers to outsourcing work

3rd May 2024
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Initor Global UK provides premium outsourced services to UK accountants and businesses.

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Many accountants have successfully outsourced work offshore, reducing costs and increasing the range and scope of services offered to clients. Despite the benefits available to accountants from outsourcing work, many continue to perceive barriers to implementation, such as how outsourcing can support business objectives, communication with clients, delivery of work and data security.

Initor Global UK | outsource accounting | outsourcing
Initor Global UK

If you are thinking about outsourcing services but feel nervous about overcoming any barriers to implementation, the following may help inform your decision.

Outsourcing can help your Practice grow and increase profit margins

With the additional capacity outsourcing brings, accountants can focus on their core business objectives, whether that involves increasing the number of clients or offering a wider range of services to existing clients. Outsourcing recurring tasks such as bookkeeping, payroll or accounts preparation frees up time to help clients and understand their business needs, with the scope to add value to the client relationship.

Outsourcing can improve productivity, through better workflows and systems to manage work sent to an offshore supplier. Smaller Practices may need to engage a business analyst to conduct these reviews, and good outsourcing partners can help implement any changes needed. Typically, the cost of outsourcing work to an offshore accountant is 50% less than a UK resource, securing immediate reductions to your cost base.

Outsourcing provides flexible resources

Outsourcing helps accountants become more flexible and agile, able to adapt to emerging situations such as regulatory changes and more local matters such as recruitment and retention pressures, backlogs of work or a peak in demand for services. Initor Global has helped many UK accountants meet the requirements of HMRC’s Making Tax Digital regime for VAT through our monthly bookkeeping and VAT return preparation services. We also help Practices manage backlogs of work where resources are scarce and during the peak periods of work in December and January, when demand for personal tax services is at its highest.

Communication with clients and client service

Many accountants prefer to retain responsibility for client communications and outsource only recurring tasks. Other accountants are comfortable with the outsource partner using email to contact clients to progress work and can track the quality of communications through their Customer Relationship Management (CRM) system. Some accountants are concerned time zone differences cause difficulties in resolving any matters arising from work. However, most outsource providers work in UK time zones and are also flexible enough to gain advantages from overlapping work hours. Time zone differences mean work can be completed offshore outside of UK working hours, creating a longer cycle of productivity, and increasing efficiency.

Managing people expectations

A common misconception among accountants considering outsourcing is that people won’t like it and will feel their careers are threatened or even at risk of losing their jobs. However, in most cases, outsourcing allows accountants to support the career paths of individuals, ensuring they shift focus away from recurring tasks and develop the skills to meet the needs of clients. With outsourced services, accountants at all levels are empowered to focus on the key objectives of the business

Data integrity and security

Most accountants feel nervous about transferring responsibility for services and data to an outside organsiation and see risks around the protection of Intellectual Property (IP). However, outsourced providers ensure data security by using secure accounting software with systems and other physical safeguards to prevent the loss or misuse of data.

Reputable outsourcing providers are fully GDPR and ISO 27001 compliant and use cloud based solutions to ensure data cannot be downloaded, reducing the risk of data loss or IP theft.

Conclusion

UK accountants are increasingly using outsourced services to do more than reduce costs. Outsourced services are being used to add value to the business, increase flexibility and deliver growth. Any accountant looking to grow sustainably should consider how outsourcing can help.

If you are an accountant looking to outsource services, increase margins and help your client’s thrive, you can book a video call with one of Initor Global’s expert advisors using this link or send an email to [email protected]

Initor Global is exhibiting at Accountex 2024 on 15th and 16th May. You can visit us at stand 1265.