Onshoring Vs. Offshoring: Should Accountants Outsource Audit Support Services to India?

Over the past few years, the demand for professional audit support services has risen significantly in the UK. With the auditing industry set to undergo substantial reforms, many smaller accountancy firms are stepping into the market aided by outsourcing support.

A recent report by the UK government stated that a diverse range of companies worldwide continue to identify the UK as a favourable place to start and grow a business. These businesses are required to undergo a mandatory financial audit every year, making the auditing industry a vast market for accountants.

Following the corporate crisis in the UK audit world, the government came up with ambitious plans to restore the industry. Since the financial audits of large corporations are now to be divided between a Big Four firm and a smaller auditing company, many accountants are turning to outsourcing with the goal of stepping into the auditing market.

But wait, can audits really be outsourced? Certainly! You can hire dedicated and experienced audit preparers to work offshore from a delivery centre or onshore from your office location. This is an excellent way to free up your in-house staff for strategic tasks directly contributing to revenue growth.

However, finding the right partner to outsource to is challenging. As the industry recovers from crisis, the government has devised stringent rules to regulate every external audit in the country. This has significantly impacted the way audit firms function.

Besides choosing a suitable outsourcing firm, accountants also battle the indecisiveness of working with onshore versus offshore resources. While both have advantages and disadvantages, what is the best for accountants in the current scenario?

Let’s understand both onshore and offshore outsourcing in detail first.

Onshore Outsourcing

Let’s begin with understanding what is onshore audit. Onshore outsourcing is when an accountant hires a firm for professional audit support and preparation services near their geographic location. It is when accountants and accountancy firm owners in the UK work with outsourced auditors right in the UK, preferably in the same location as their functional office.

Advantages of onshore outsourcing

• Outsourced professionals work from your office
• Auditors have a good understanding of the industry
• Facilitates better communication
• Instant support and problem-solving

Disadvantages of onshore outsourcing

• High auditor salaries
• Operational and admin costs

Must read: Bridging the Gap: Is Onshoring the Solution to Audit Talent Drought?

BOOK A DISCOVERY CALL

Offshore Outsourcing

Let’s begin with understanding what is offshore audit. Offshore outsourcing is when you outsource audit support services to India or any location beyond geographical boundaries. It is when accountants employ auditors outside the UK who work virtually out of a delivery centre.

Offshoring is a common practice among global businesses owing to its cost benefit. The most popular offshoring destination for professional audit support services in India.

Advantages of offshore outsourcing

• Competent auditor salaries
• Reduced operational costs
• Access to global talent
• Increased flexibility
• Availability of resources irrespective of local holidays

Disadvantages of offshore outsourcing

• Communication gap
• Limited control and transparency
• Data risks

Must read: Audit Offshoring Challenges & Solutions for Accounting Firms

DISCOVER HOW IT WORKS

Onshoring Versus Offshoring: What is Better?

Now that we have understood onshore and offshore outsourcing individually, the real question remains- What should accountants choose when outsourcing their accounting audit process?

To begin with, the answer to the above question depends on the specific requirements of an accounting firm. Assess your firm’s goals and needs and determine what would work best for you.

For instance, some accountants offer certain services only to tenured and premium clients. Such accountants may want to hire an audit professional for a limited time. On the other hand, some accountants may want to expand their service portfolio and enter the audit market as a full-fledged audit firm.

For the first category of accountants, audit offshoring India may be the most favourable solution. Outsourced offshore professionals or teams work virtually out of a delivery centre as per clients’ requirements at competitive rates.

On the contrary, the second category of accountants may most likely look for a dedicated professional or team for long-term collaboration. While offshore outsourcing works perfectly well even for long-term projects, some accountants may like their outsourced team to work from their office. For these accountants, onshore outsourcing may be the most suited solution.

Also read: Decoding Audit Support Services: The Complete Guide to Audit Outsourcing for Accountants

Outsourcing Audit Support Services to India: Is it Worth it?

When it comes to finance and accounting outsourcing (FAO) services, India is a widely popular choice. It is, in fact, listed among the top five accounting outsourcing destinations in the world, alongside the Philippines, Ireland, and Brazil.

Outsourcing audit work to India offers numerous benefits to accounting firms in the UK, especially small and midsized practices. Since these firms may not have the financial capacity to hire onshore accountants in the UK, outsourcing to India is a lucrative alternative.

Moreover, India is a powerhouse of talent. There is a vast pool of skilled accountants and auditors in India, trained extensively by audit support services providers for the global market. Accountants can, therefore, avail themselves of the best skills, latest knowledge, and vast experience when outsourcing their needs to India.

Below are some of the unique advantages of offshoring audit support and preparation services to India.

• Powerhouse of talent
• Excellent technical skills
• Flawless communication
• Timely reporting and management
• Dedicated services
• Round-the-clock support

Our audit clients, including some Top 20 firms and industry leaders, have reaped unmatched benefits from outsourcing. Hear it directly from one of our prestigious clients here:

Planning to Outsource Professional Accounting Audit Support to India?

Are you planning to capitalise on the prevailing opportunity in the UK audit market and grow your firm? QXAS is the one-stop destination for all your outsourcing needs.

QXAS, the accounting outsourcing arm of QX Global Group, one of the fastest growing outsourcing companies in West India, specialises in dedicated audit support services for growth-focused accounting firms. We have a rich experience of over 18 years, serving diverse clients across the accounting industry and helping them scale their firms.

We understand the current crisis in the UK auditing market and the risks and opportunities ahead for accounting firms. Our dedicated team of over 1000+ accountants and auditors is extensively trained on the latest UK auditing regulations and works diligently to help clients achieve their goals.

QX thrives upon the core values of Quality and Excellence and is committed to making outsourcing a seamless experience for accountants. What sets us apart from our competition is our unique ‘People First’ approach that has consistently helped us serve clients with top-notch services.

Why Work with QXAS?

• Vast team of highly skilled and dedicated auditors
• Multiple engagement models and risk-free service evaluation
• First GDPR and ISO 27701 compliant accounting outsourcing company in India
• Fully compliant with ISO 27001 for information security and ISO 9001 for quality
• Leader in IAOP’s 2022 Global Outsourcing 100 List for eight consecutive years
• Proud winner of a 100% score in all BSI audits

To explore our services in more detail or speak to an outsourcing expert, call us at +44 208-146-0808 or drop an email at [email protected]. To avail a free trial of our services, click here or log on to Outsourced Accounting, Bookkeeping, and Payroll Services | QXAS UK (qxaccounting.com).