Topics: Audit, Audit Support, Auditing, Outsourcing

How Much Does It Cost to Outsource Audit Support Services in the UK?

5 MIN READ | Posted on March 13, 2023
Written By Pooja Kshirsagar

How Much Does It Cost to Outsource Audit Support Services in the UK?

The finance and accounting outsourcing (FAO) sector is one of the most prominent industries globally. Ever since the UK auditing market has opened doors to the smaller players in the industry, outsourcing professional audit support services has been on the rise. Considering the benefits of outsourcing, several UK accountants have made India the destination of choice.

Outsourcing to India offers a range of benefits to businesses, especially small and medium-sized accountancy firms. Since these companies battle severe capacity and financial challenges, outsourcing is the way to go.

Cost savings is one of the most significant benefits of outsourcing audit support and preparation services. Several studies and reports on the UK accounting outsourcing trends over the years have listed cost reduction as the primary reason accountants outsource. In addition, outsourcing also helps accountants cut operational costs and boost profits in the long run.

Yet, accountants in the UK have one question they commonly ask – How much does it cost to outsource professional accounting audit support?

To understand how outsourcing companies charge their services, it is essential to identify the factors that majorly affect their pricing.

What Determines the Cost of Audit Support Services?

When pricing their services, outsourcing companies take into account several factors. Some of them are listed below.

Nature and duration of an audit

To begin with, let’s consider how complicated your financial audit is. If it is too cumbersome, involves multiple transactions, and may last longer, the outsourcing company will charge you accordingly. Conversely, external audits that are relatively simpler are charged at standard rates.

The nature of your clients’ financial audit also determines how many resources you must outsource. If you are looking for a full-fledged outsourced auditing team, your outsourcing partner may offer a discount on per-resource costs.

Engagement model

Based on the nature and duration of an audit, accountants must choose a suitable engagement model. Leading accounting audit support companies offer multiple engagement models to clients based on their needs.

An engagement model largely determines the pricing of professional audit support services in the UK. Top outsourcing companies provide both offshore and onshore engagement models to help accountants hire the right outsourced resources for their firm.

Candidate experience

Another critical factor affecting the pricing of audit support services UK is candidate profiles. Do you wish to hire a highly experienced auditor with proven technical proficiency, or would you go with a relatively novice resource? Based on the overall experience of the candidate you shortlist, your outsourcing firm will customise its pricing to your need.

Outsourcing company

Last but not least, the firm you choose to outsource your accounting audit process largely determines the final cost of outsourcing. The higher your outsourcing firm’s industry experience and market credibility, the greater the price you pay for their services.

Although a smaller and relatively newer firm may price you lesser for the same set of services, it is advisable that accountants consider significant factors such as a firm’s reputation when outsourcing. A company that has served multiple clients over the years better understands the market and can provide you with top-notch services.

Apart from the above factors, many other parameters affect the final pricing of audit support services. Since each client has varied requirements and expectations from outsourcing, audit support providers customise their prices for each client.

Outsourcing Audit Support Services to India

Owing to its cost benefit, a large number of accountancy practices in the UK prefer to outsource professional accounting and audit support services to India. While outsourcing to India offers firms a range of benefits, competitive accountant salaries and readily available talent are the most significant advantages.

Let’s take a quick look at the cost of hiring a full-time auditor in the UK versus outsourcing professional accounting audit support to India.

In the UK, the average salary of a full-time auditor is estimated at £42,365/year (Source: Glassdoor). In addition to the salary, accounting firms bear onboarding and training costs, operational expenses, administrative expenses, payroll processing and performance appraisal, leave and absence costs, etc., per employee. The cost of hiring an in-house financial auditor in the UK thus elevates beyond £50,000/year.

On the other hand, outsourcing audit support to India offers accountants a distinct pricing advantage. The average cost of hiring a full-time outsourced auditor in India ranges between £25,000/year to £40,000/year. If you plan to hire an outsourced accounting audit support professional on an ad-hoc basis, it will cost you between £25 to £45 per hour.

This is the final cost of outsourcing as accountants need not spend extra on onboarding and training, leaves and employee benefits, administration and payroll, etc.

The above figures show the alarming cost difference between hiring a full-time in-house and outsourced audit professional. Besides, outsourcing audit support services in India gives accountants access to a vast talent pool with updated knowledge, technical expertise, and language skills.

Onshore Support in Outsourcing

Some accountants are keen on outsourced staff working from their office instead of virtually for better communication and productivity. To satiate this requirement, top outsourcing firms like QXAS provide the onshore support model.

Within the onshore support model, an outsourcing firm deploys at least one resource to work from the client’s onshore workplace. This resource acts as a team leader, coordinating and managing the activities of the offshore team and serving as a single point of contact between them and the client.

The onshore support model offers several advantages to accountants, making the process of outsourcing audit support services simpler and hassle-free.

Summing Up

If you have been struggling with capacity challenges and looking to save costs for your firm, outsourcing is the way to go. By outsourcing professional audit support and preparation services to offshore destinations like India, accountants can save on auditor salaries and significantly cut overhead costs.

Top audit outsourcing companies in the UK offer multiple engagement models for accountants to choose from. To determine the most suitable model for your firm, it is vital to thoroughly analyse your firm’s goals and requirements.

Lastly, accountants must consider multiple factors while choosing the right audit support services company instead of merely focusing on costs. A top-tier accounting and auditing outsourcing firm such as QXAS can help resolve talent shortages effectively and boost profits for your firm.

To learn more about outsourcing professional audit support with QXAS, call us at +44 208-146-0808 or drop an email at [email protected].

 

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poojakshirsagar

With a rich experience of curating content for various industries, Pooja believes in the power of words in marketing and building brands. She enjoys experimenting with different forms of content and is currently on a mission to add value to the accounting industry through her detailed and researched write-ups.

Pooja Kshirsagar

With a rich experience of curating content for various industries, Pooja believes in the power of words in marketing and building brands. She enjoys experimenting with different forms of content and is currently on a mission to add value to the accounting industry through her detailed and researched write-ups.

Unauthorized copying or plagiarism of our content is a violation of intellectual property rights. We take such matters seriously and will pursue legal action to protect our original work. Anyone found engaging in such activities will be held accountable under applicable laws.

Originally published Mar 13, 2023 01:03:56, updated Mar 13 2023

Topics: Audit, Audit Support, Auditing, Outsourcing


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