Finding the right outsourcing partner can be a task. With hundreds of firms out there, it can get confusing. However, it is as important as carefully hiring your own staff. After all, this will be your extended team working on your projects and your clients’ data. So, how do you find the right outsourcing partner?
Striking it out on your own means you have many plates spinning in the air as you try to get your practice off the ground. You don’t have to go through it alone though.
When choosing an outsourcing provider, remember that they must really understand the needs of your start-up accountancy firm. The right partner will give you the peace of mind that the compliance side of your business is in safe hands and can make such a difference for you.
Here are some essential factors to consider:
Make sure you think about your practice needs and determine whether outsourcing should be pursued or not. Start with creating a list of tasks that can be outsourced. Ask yourself, are these tasks part of your expertise? If you answered no, then outsourcing it may be the right solution. It is in this stage that the unknowns must be flushed out and confronted. Here’s a quick video to help you out:
Speak to your colleagues, peers and even your competitors for recommendations. Check out your email inbox or your network from attending events. You will most likely find at least of couple of providers your peers know or have worked with.
Talk to multiple outsourcing providers, so you can compare them. Ask questions like:
Ask technical work-related questions too, like:
It’s always good to check the outsourcing partner’s infrastructure, recruitment and technology capabilities. It is important that they can recruit the resource needed to do your work. It might be worth spending a fortnight with your outsourcing partner to get a first-hand experience of their work ethos and culture. Get involved with them, attend the staff meetings, interact with your extended team. This is the best way to experience their work culture.
Toward the end of the first call, check if they have understood your outsourcing requirements. A good way to find out is to ask them for advice on how they could manage your compliance jobs more efficiently. A good outsourcing provider, with years of collective experience gathered from working with hundreds of accountancy practices, will offer you best practice knowledge they have acquired.
Someone may sound good on the phone and even perform well in the interview. But you should do your research and make sure they are qualified:
Cultural differences may mar business relationships. Choosing an outsourcing company is the same as choosing a business partner. Outsource to someone you know who can communicate – someone you are comfortable speaking honestly with.
No two firms are the same just as no two fingerprints are the same. It’s important your outsourcing partner has worked with a practice of a similar size to yours. Having experience in dealing with clients similar to yours goes a long way.
To figure out how they ensure security policy and procedures are followed, ask them questions like:
As the old adage says, ‘If you pay peanuts, you get monkeys’. So don’t partner with the cheapest provider you can find. They may not be able to manage your requirements proficiently. Ensure you set the prices with variances in advance before you agree to a contract.
Too many outsourcing relationships have failed as accountants do not prepare themselves for the relationship. Involve yourself. Stay in touch with your outsourcing partner. Use meetings and reports to exchange feedback on how the partnership is going. Meetings will keep your relationship on track and establish an effective governance process. To ensure success, a ‘tough love’ approach is required.
Summing up, here’s a quick downloadable checklist for choosing an outsourcing provider that you can keep handy or pin on your board.
The best outsourcing company will take care of your compliance functions so you can focus on growing your practice. So, when you choose an outsourcing partner, make sure you take care and time to find someone who’s a really good fit. The right partner will streamline your accounting processes, enable you to eliminate workflow bottlenecks and in-crease the efficiency of your in-house staff as workload is distributed.
QX Accounting Services, a market leader in the global accounting outsourcing space, is a trusted partner to over 350 accountancy firms for accounting, tax, audit support, and automation solutions. With over two decades of industry experience, we understand our clients’ unique needs and tailor our solutions to best fit their needs.
Here’s why 9 out of 10 accounting firms choose us:
Curious to learn how we can support your firm’s growth journey? Connect with us at +44 208 146 0808 or email us at qxas@qxglobalgroup.com. You can also directly book a call with our expert for a virtual or face-to-face meeting.
Considering outsourcing but unsure how to start? We’ve got you covered! Download our free guide to decode the A to Z of outsourcing for accounting firms.
Mustufa is a Chartered Accountant with 10 years of progressive experience across Indian, Canadian, and UK accounting domains. He has a proven track record of leading high-performing teams of 60+ members, managing multi-client portfolios, and driving operational excellence with measurable profitability improvements.
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