Understanding the Outsourced Bookkeeping and Accounting Process: How Does It Work?

Outsourcing isn’t alien to the accounting community. The fact that you are here on this page reading this blog means that you are aware of outsourced bookkeeping and accounting, and it has piqued your interest at some point.

The outsourcing industry in the UK saw a 41% increase since the pandemic, with many new and old market players outsourcing at least some aspect of their business. Several accounting firms have joined the wagon since, outsourcing their most time-consuming jobs to qualified experts.

Yet, we often get asked in client meetings and events: How does outsourcing actually work?

While you may be familiar with the process of finding an outsourcing provider and beginning your journey, the actual way work is done after you’ve onboarded resources might still be unclear. After all, entering uncharted waters is daunting!

In this blog, we’ll look at the actual outsourcing process, focusing on how work is done after you onboard your outsourced team and what you can expect from your outsourcing provider. Let’s dive in.

Why Do Companies Outsource Bookkeeping and Accounting?

First, let’s understand why outsourcing is important and how it can help your firm. There are a number of reasons accounting firms outsource their accounting and bookkeeping:

• Access to global talent
• Cost savings
• Focus on core competencies
• Increased efficiency and productivity
• Access to the latest technology

The most important step in outsourcing for a firm is finding the right service provider. This can entail tremendous research and consideration, but once you find the right service provider that understands your needs, half the job is done.

How Does Outsourced Bookkeeping and Accounting Work?

Let’s get to the stage where you have already onboarded your outsourced resource or team. Next, you must give them an overview of your business, clients, and processes. Once that is done, the outsourced team quickly springs into action, taking up the responsibility of your mundane accounting and bookkeeping tasks.

Step 1: Delegating

One of the most common questions clients ask about outsourcing bookkeeping is: How do I send my work across?

Outsourced teams use secure virtual technology to remotely log in to your systems to access the necessary data and information. Alternatively, you can share files and assign tasks to your extended team through a secure FTP portal. This file transfer is completely safe and encrypted, ensuring your clients’ data remains secure.

If you prefer a more secure and hands-on approach, you can hire onshore resources to work from your office in the UK.

Step 2: Processing

Once the work is delegated and all necessary data and files have been shared, the outsourced team begins working on the tasks. They use the software you use or prefer to process jobs and deliver the required output.

During this stage, the outsourced team or the assigned team leader provides regular updates on the progress of the tasks. If you outsource your bookkeeping to a reputable provider like QXAS, you can track job progress through their secure tracking portal or application.

Step 3: Review & Feedback

Upon completing a designated job, the outsourced accountant or team leader shares the completed files for review. It’s important to note that a market-leading outsourcing provider like QXAS ensures a two-level review before the files are shared with you. This ensures you spend minimum time re-reviewing and correcting their work.

After reviewing, you can share your feedback with the outsourced accountant or team and request changes if required.

Step 4: Implementing Changes

If you’ve requested changes for a given task, the outsourced accountant or team works on those and reshares the files. If there are no changes required, this step can be skipped altogether.

Step 5: Final Report

Once a job is completed, the outsourced bookkeeping and accounting team shares a final report with review notes. You can then assign them the next task, following the same process.

How Much Does It Cost to Outsource Bookkeeping and Accounting?

For an accounting firm in the UK, outsourcing bookkeeping and accounting services to India can cost between £1,500 to £3,500 per month for a full-time resource, depending on their experience and industry expertise. The pricing is subject to change if you hire an onshore resource to work from your office in the UK.

Learn more about the pricing structure here: How Much Does it Cost to Outsource Accounting Services?

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Summing Up

Outsourcing may seem like a complex process if you are new to it. But in reality, it is a straightforward and worthwhile investment. By delegating your mundane, time-consuming tasks to specialised experts, you can free up your in-house teams to focus on clients, expand your service offerings, or upskill themselves.

If you still have questions or want to add outsourced bookkeeping and accounting professionals to your team, our experts are just a call away. Reach out to us at +44 208 146 0808 or write to us at [email protected] to get the conversation started.