Offshoring Accounting Services: How UK Accountants Can Increase Efficiency and Cut Costs

In the fast-paced business environment, accounting firms need to be agile and efficient to stay ahead of the competition. One way to achieve this is through offshoring accounting solutions.

Offshoring refers to the practice of outsourcing services to a third party located in a different country. This process can be a powerful tool for accounting firms to streamline their operations, increase efficiency and save costs. With the competition rising and the capacity crisis getting more severe by the day in the new financial year, offshoring will be a crucial tool for accounting firms to drive growth and stay ahead of the curve.

This blog post will explore the benefits of offshoring accounting solutions and offer tips on how UK accountants can navigate this process.

Why Offshoring Accounting Services is a Good Idea

Cost Savings

One of the primary benefits of offshoring accounting solutions is cost savings. Outsourcing to offshore destinations enables accounting firms in the UK to save up to 50% of their operating costs. This is primarily because salaries and wages in countries like India, the Philippines, and Malaysia are significantly lower than in the UK. Plus, these resources work from offshore delivery centres and are on the outsourcing company’s payroll, reducing infrastructure and payroll costs.

Access to a Large Talent Pool

Another benefit of outsourcing accounting services is access to a large talent pool. Many offshore locations like India have a large pool of highly skilled and experienced accounting professionals who can handle a range of accounting functions. Additionally, these resources are well-versed in multiple software tools and can help streamline accounting processes. This allows accounting firms to tap into a broader range of skills and expertise that may not be available in-house.

Increased Efficiency

Offshoring accounting solutions can also help accounting firms to increase efficiency. By outsourcing the non-core functions of accounting, such as bookkeeping, accounts payable and receivable, and tax compliance, to an offshore location, accounting firms can focus on more strategic tasks such as advising clients and developing new business. This can result in increased productivity and efficiency.

In the new financial year, as clients expect more from accountants beyond just the core functions, focusing on developing business is crucial. Offshoring allows accountants to delegate mundane, time-consuming tasks, thus creating the capacity to focus on higher-value services.

Offshoring Tips for UK Accountants

While offshoring accounting solutions can offer significant benefits, it is essential to approach the process with care. Here are some tips for UK accountants considering offshoring accounting solutions:

1. Do Your Research

Before embarking on an offshoring project, it is essential to do your research. Consider factors such as language proficiency, cultural differences, time zone differences, data security, and regulatory compliance. It is also essential to evaluate the quality of service provided by the offshore vendor. To do this, you may seek references from the outsourcing firm, collect testimonials, speak to your peers and colleagues, and follow them on social media.

2. Choose the Right Vendor

Choosing the right vendor is critical to the success of an offshoring project. Look for a vendor with sizable experience and a proven track record of providing high-quality accounting services. It is also essential to choose a vendor that understands the UK accounting system and can provide services that are compliant with UK regulations.

3. Start Small

It is a good idea to start small when embarking on an offshoring project. Begin by outsourcing the non-core functions of accounting, such as bookkeeping or accounts payable and receivable. Once you are comfortable with the vendor’s service quality and have established a good working relationship, you can consider outsourcing more complex accounting functions.

Many accounting outsourcing companies also offer a free trial of their services. If your potential partner provides one, you may choose to evaluate their services before outsourcing the actual work to them.

4. Maintain Clear Communication

Communication is critical when offshoring accounting solutions. Establish clear lines of communication with your offshore vendor and ensure that you have a system in place for regular updates and reporting. It is also essential to establish clear expectations regarding turnaround times and quality standards.

Communication is important not only when choosing an outsourcing partner but also after you have onboarded resources. Since your extended team will work from an offshore location and there will be time zone differences, communication may sometimes get tricky. Build a robust communication channel to ensure there aren’t any gaps in the process.

5. Monitor Performance

Regularly monitor the performance of your offshore vendor to ensure that they meet your expectations. This can be done through regular reporting and performance reviews. It is also essential to establish a system for addressing any issues or concerns that may arise.

Conclusion

Offshoring accounting solutions can be a powerful tool for accounting firms to increase efficiency, access a large talent pool, and save costs. By following the tips outlined in this blog post, accountants in the UK can navigate the process of offshoring accounting solutions with confidence. With careful planning, research, and vendor selection, offshoring can be a game-changer for accounting firms looking to stay ahead of the competition.

Outsource Professional Accounting Services with QXAS

If you need professional accounting outsourcing support for your practice, QXAS can be your go-to partner. We have been in the industry for over 14 years and understand the diverse requirements of growing accountancy firms. We are also up to date with current market trends and the latest technology and can help firms effectively enhance their productivity and profits.

QXAS has a vast talent pool of 1000+ accounting and bookkeeping professionals working dedicatedly to provide the best services to our clients in the UK. Our resources have excellent communication skills and technical expertise and can be hired quickly. You can evaluate our services with a free trial or hire resources for your firm instantly.

If you need to speak to us, we are just a call away. Dial +44 208-146-0808 to talk to an outsourcing expert or email us at [email protected]. Curious about our other services? Visit our website, read our latest blogs, and follow us on social media.