7 Factors to Consider Before Outsourcing Accounting and Bookkeeping Services

The decision to outsource your accounting services can be difficult, especially if you’re unsure whether this is the right move for your business. However, outsourcing accounting can be extremely beneficial in the long run. From cost savings to time savings to immediate scalability, there’s a lot of pros that come with outsourcing.

If you’re considering outsourcing to a specialist, it’s important to keep in mind a few things before you sign the dotted sign.

7 Things to Look for Before Outsourcing

Clarity on business goals: The decision to outsource can be the result of a variety of reasons. However, it’s important to be clear about the business goals you wish to achieve. Are you focused on cost savings? Do you require assistance with scaling your business? Have a detailed discussion regarding your exact business goals and revisit them regularly. When you’re clear about what you wish to achieve, you can work better with your outsourcing partner to match those expectations.

Data security: When working with an outsourcing specialist, you’ll be sharing confidential financial information with them. It’s important to do your due diligence and check whether the outsourcing partner has all the checks and balances in place to ensure airtight data security. QXAS, for example, is GDPR and SOC 2 Type 2 compliant, along with being Cyber Essentials Plus certified.

Infrastructure and technology: It’s crucial to choose an outsourcing partner who has the infrastructure and technology expertise to help your business achieve its goals. So, when considering potential partners, do a thorough check regarding their technology expertise. What tools and software are they capable of handling? What are the qualifications of their staff? How up-to-date are they with their systems?

Meeting deadlines: Quality and timeliness are two factors that you should not compromise when selecting an outsourcing partner. Any delays in delivering the agreed-upon deliverables will lead to significant bottlenecks in your business. So, ensure your outsourcing partner adheres to the timeliness and quality. It’s a good idea to check references for your partner before hiring them to gauge their expertise and delivery.

Minimal supervision: When hiring an outsourcing specialist, it’s expected that they’ll handle your requirements with minimal to no supervision. If you have to constantly check in on them and micromanage the process, then it doesn’t make sense to partner with that company. Therefore, it’s essential to choose a partner capable of handling your requirements independently and without too much assistance from your end.

Service Level Agreement (SLA): The SLA is one of the most critical documents in your outsourcing journey. It’s crucial to ensure that it details every minute detail of your partnership with the outsourcing firm. The more clarity you have regarding your expectations, deliverables, and other information, the better it is for your business. Furthermore, it’s a good idea to get a lawyer involved when drafting up your SLA.

Communication: This is the most critical factor you should consider when zeroing in on an outsourcing partner. You need to choose someone who will promptly handle all your queries without delay. Good communication skills will only improve your outsourcing relationship and enable you and your partner to clarify any issues that may crop up easily.

Conclusion

It can be challenging to find the right accounting outsourcing provider for your business. By keeping in mind the factors mentioned above and doing your due diligence, it’s possible to build a fruitful relationship with the right outsourcing provider.

Are you looking out for an accounting outsourcing partner?

QXAS is an experienced and accomplished outsourcing partner with a comprehensive range of accounting, tax and bookkeeping services. If you have any queries about accounting outsourcing, reach out to our experts at [email protected] or call +44 208 146 0808.