Topics: Accounting Outsourcing, Outsourcing

6 Questions to Ask Your Accounting Outsourcing Provider Before Saying Yes

3 MIN READ | Posted on January 14, 2022
Written By Rukmani Krishna

Questions to Ask Your Outsourcing Provider

The accounting landscape in the UK has evolved significantly over the last decade. Add to this the aftermath of the COVID-19 pandemic and the way accountants do business has gone through several notable changes. Additionally, the accounting industry faces a severe shortage of staff, a lack of business skills, and a high cost of recruiting and training new staff.

Outsourcing has been the top choice for several accounting practices for quite some time now. Accounting outsourcing offers several benefits for accounting practices, such as cost savings, time savings, quicker turnaround times, enhanced data security, and faster scalability. However, choosing the right specialist for your practice can seem challenging.

Today, there are plenty of accounting outsourcing companies in the market. So, how do you decide which company you should work with? To help you out, we’ve compiled a list of six questions that you should ask potential accounting outsourcing providers.

Questions to Ask Accounting Outsourcing Providers

What type of services do you provide? 

The accounting function encompasses many tasks, such as bookkeeping, payroll, financial analysis, strategic planning, forecasting, budgeting, tax strategy, tax compliance, and auditing. Speak to the outsourcing partner about their specific offerings and decide on the tasks you wish to outsource to them.

What type of accounting software are you familiar with?

Nowadays, there are several types of accounting software available in the market. There’s no single universal solution for any practice. Therefore, it’s essential to determine whether the shortlisted company can work with the software your accounting practice uses. It’s a smart idea to choose a technology-agnostic partner as they will be able to serve you better. Don’t’ forget to ask for a list of the various accounting software they use.

What pricing models do you use for your services?

The price of outsourcing your accounting function will differ based on the provider you choose. You can choose to pay depending on the number of hours worked or even opt for a pay-as-you-go model. You can also opt for the Full-Time Equivalent (FTE) model. The cost depends on your choice. At QXAS, we offer three engagement models for our accounting outsourcing services. This includes the pay-as-you-go, dedicated resource (FTE), and block-of-hours models.

Is there a specific volume of work that you can handle?

It’s important to have an estimate of how much work you’re planning to outsource when beginning talks with potential outsourcing companies. When you know exactly how much work you plan to outsource, you can then connect with the outsourcing partner to know how much work they can take on. Sending the outsourcing partner large volumes of work doesn’t make sense if they cannot complete them on time. It’s also a good idea to check whether they’ll be able to take on additional work if needed.

What’s the best way to contact you?

When dealing with an accounting outsourcing company, it’s important to ensure good communication so that you can function efficiently and effectively. Speak to the partner about the different ways in which you can connect with them, how often you can get it in touch, and when you can expect updates regarding ongoing jobs.

How can you help me grow my business?

This is an extremely pertinent question that you should definitely consider asking a prospective vendor. Your practice needs to ascertain whether the outsourcing relationship will add value to your business and help you scale even further. Choose a partner who shows certainty and confidence in how they do business.

Conclusion

You must find the correct accounting outsourcing partner as they will feel like an extension of your practice. Therefore, ensure you do your diligence when shopping for a potential outsourcing provider. Remember to ask them some of the questions we’ve mentioned above to check whether they’re a good fit for your practice.

With the help of an experienced and accomplished outsourcing partner like QXAS, your accounting practice will be able to operate efficiently and offer high-quality returns to your clients. We offer a comprehensive range of accounting outsourcing services, including bookkeeping, payroll, making tax digital, management accounts outsourcing, etc.

If you have any queries about accounting outsourcing, reach out to our accounting experts at [email protected] or call +44 208 146 0808.

Rukmani Krishna

After a short stint with journalism, Rukmani found her calling in content. From content writing to content editing and now content marketing, she has worked in several content-related roles across sectors, such as business news, general news, online education, and digital therapeutics. Currently, she’s focused on creating relevant and useful content for accountants to help them better navigate their outsourcing journey.

Originally published Jan 14, 2022 11:01:10, updated Jan 19 2022

Topics: Accounting Outsourcing, Outsourcing


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