Outsourcing Professional Audit Support Services in the UK: How Does it Work?

Years after the collapse of leading UK corporate giants such as Carillion, Patisserie Valerie, and BHS, due to shocking audit failures, the UK auditing industry still reels in uncertainty. However, in the midst of this ambiguity lies a lucrative opportunity for smaller accountancy firms to step into the audit market and open doors to a new revenue stream.

Recognising this opportunity, many accountants are planning to make a move to auditing. However, as the accounting industry battles numerous challenges simultaneously, this decision isn’t an easy one. In fact, most accountants are caught up right at the basics- building a team of skilled auditors and switching to the latest accounting and auditing software.

Consequently, professional audit support services have risen in demand substantially over the last few years. Outsourcing audit support to a trusted accounting outsourcing firm enables accountants to resolve their staffing and technology issues, thus creating capacity and facilitating scalability.

HOW DOES AUDIT OUTSOURCING WORK?

In order to better regulate the country’s financial audits and ensure their quality and authenticity, the UK government announced the creation of the Audit, Reporting and Governance Authority (ARGA). Currently, all the audits in the UK are regulated by the Financial Reporting Council (FRC).

Based on the rules laid down by these regulatory bodies, the way auditing and outsourcing firms function has changed significantly. Nonetheless, the core process of outsourcing accounting audit support remains the same.

Let’s understand the step-by-step process of outsourcing professional audit support in the UK.

Step 1: Research

The first step to outsourcing your audit work is research. Research is critical to the outsourcing process, as it is to any significant business decision. This is the stage where accountants delve into the service in detail, understand its nuances, and find the right outsourcing partner for their firm.

This is the longest and most intricate stage of the outsourcing process. The right outsourcing partner for an accountancy practice is a firm that understands its vision and goals, works around its challenges, and provides customised audit support services UK.

Since there are numerous outsourcing companies out there, it may be tricky to narrow down the search and find the most suitable provider. But with adequate research and due diligence, the process can be made easier.

In order to determine the most suitable service provider to outsource to, accountants must look up the internet, speak to colleagues and peers, evaluate the reviews and testimonials of potential partners, and ask all the relevant questions.

Step 2: Candidate Selection

After you have found the right partner to outsource your accounting audit process, the next step is to find suitable candidates for your team.

Although the UK auditing industry is slowly returning to normalcy following the corporate shockers, there still looms an atmosphere of mistrust. Many clients are skeptical about individual auditors and auditing firms and demand absolute credibility. To bag the right opportunities in this situation, accountants need skilled and highly experienced resources. Therefore, you must choose your outsourced staff vigilantly.

Outsourcing providers have a vast pool of skilled and experienced auditors. Your service provider shares the profiles of the candidates that can be a good match for your auditing requirements. Accountants can review the profiles of these candidates and interview them to understand their skills and expertise in detail.

Following the interview process, accountants shortlist the most suitable candidates and share the same with the audit support services provider.

Step 3: Agreement

The third step in the outsourcing process is preparing and signing the agreement. After accountants have shortlisted candidates to work with, both parties decide and agree upon the terms of service.

Following the agreement, the outsourcing provider drafts the service contract and both parties must sign it mutually. This lays the foundation for the outsourcing association and guides accountants along the way.

A typical agreement for audit support and preparation services includes both practice owners’ and candidates’ roles and responsibilities. It also details the duration of service, legal rights and liabilities of both the firms involved, compensation, and other details.

Before signing an outsourcing contract, accountants must read the entire document carefully and get any doubts clarified. The document must be preserved carefully and kept handy at all times.

Step 4: Onboarding

The final step in the process of outsourcing professional accounting audit support is onboarding. Many accountants believe that the outsourcing process is successful once you have signed the contract. However, onboarding is an equally crucial part of the process and affects your outsourcing journey significantly.

For several reasons, most accountants in the UK opt for audit support services in India. Since the outsourced resources are based offshore, onboarding them effectively is crucial.

To begin with, coordinate with your outsourcing partner to facilitate smooth onboarding. Interact with your offshore staff before they join your team. Organise a detailed induction for them and introduce them to your in-house staff. Speak to them about their prior work experiences and expertise and brief them about your project.

While this may seem unnecessary as outsourced resources are highly experienced and well-trained, it is, in fact, crucial as it sets a foundation for your offshore staff. It also helps them feel comfortable, valued, and heard, which can help you build and foster a successful business relationship with your audit support services provider.

Further, prepare and train your in-house staff to accommodate the new resources/team and support them in order to achieve success collectively.

PROFESSIONAL AND HASSLE-FREE ACCOUNTING AUDIT SUPPORT WITH QXAS

Finding the right outsourcing firm that understands your practice’s requirements and tailors its services is challenging. With QXAS, your search comes to an end!

QXAS is a leading global outsourcing provider specialising in professional audit support and preparation services. We are a team of over 1000+ dedicated accountants and auditors with certified expertise in the latest UK auditing regulations.

Started in 2003, we have a rich experience of over 19 years in serving distinct accountancy firms over the years. Our customised services and unique ‘People First’ approach have helped several accountants reduce operational costs, increase profits, and scale their practice.

What sets us apart from our competition is that we have robust communication and data security systems. We are India’s first GDPR-compliant accounting outsourcing company with a 100% score in all BSI audits.

To learn more about our audit support services, book a free consultation with one of our outsourcing experts today. To explore how outsourcing can benefit your firm and transform your practice, call us at +44 208-146-0808, write to us at [email protected], or log on to Outsourced Accounting, Bookkeeping, and Payroll Services | QXAS UK (qxaccounting.com).