When is the Right Time for Accountants to Outsource Audit Support Services?

The auditing industry in the UK has witnessed several pitfalls over the last decade. With a series of shocking scandals and corporate failures by trusted audit giants, the industry lay in disarray and absolute shock.

Ever since, the UK government has been planning massive reforms to the industry. Be it increased control and regulation or joint audits, a number of plausible solutions are being scrutinised.

What may seem a curse to the accounting industry is actually a boon for smaller market players. With the government making joint audits mandatory for large corporates, small and medium accountancy practices have a massive opportunity ahead of them.

However, to bank upon this opportunity isn’t an easy task. Most small and medium accountancy firms are short-staffed and often struggle with finances and technology. Amidst these issues, adding a new service to their portfolio seems hugely challenging.

This is where audit support services could prove crucial and game-changing. But how can accountants ascertain if it is the right time for their firm to seek external audit support?

Here are a few pointers to help accountants make the big decision.

When you want to expand your service portfolio

The accounting and auditing industry is getting competitive by the day. Sustaining in this competitive market is challenging for smaller accountancy practices, particularly amidst the growing issues in the industry.

Financial audits being in huge demand by businesses and corporates in the dysfunctional UK auditing market, adding audit support and preparation services to one’s portfolio can significantly boost accountants’ credibility.

Outsourcing audit support to a dedicated service provider allows accountants to add skilled auditors to their team and effortlessly expand their portfolio without worrying about the quality and quantity of work.

When cost savings is your top priority

Until 2020, before the global coronavirus pandemic disrupted the way businesses function, the key objectives of outsourcing were reportedly shifting away from mere cost savings. However, Deloitte’s Global Outsourcing Survey of 2020 saw the accounting industry making a return to the cost benefit of outsourcing.

Cost savings is back in trend in the accounting industry that is already battling inflation and bracing for the impending recession. In this situation, if you are looking to add audit as a new service to your portfolio, dedicated accounting audit support is fundamental.

Outsourcing audit support to offshore destinations like India helps accountants save on labour costs and cut operational expenses. Besides, outsourcing helps firms streamline their processes and improve efficiency, which can ultimately lead to greater cost savings and higher profits.

When you want to end your firm’s talent crisis

The rising talent shortages in the accounting industry are real and worrisome. A recent Skills Shortage Report indicated an alarming gap of 22%, which means finding professional resources with the right skills is a massive challenge for accountants.

Several accountancy firms, especially small and medium-sized practices, have reported losing lucrative opportunities over a lack of skilled resources. In a recent survey of finance professionals, 27% of the participants reported staff and skills shortages as their biggest challenge.

While stepping into the auditing market could be a profitable opportunity for accounting firms today, finding the right resources may not be a straightforward task. However, audit support services can help save the day.

Audit outsourcing companies provide accountants access to highly experienced and skilled resources from around the world with up-to-date knowledge of the UK auditing regulations. These professionals work as an extension of your team based on your convenience, thus putting a permanent end to your firm’s staffing woes.

When scaling your practice is your primary goal

Scaling an accountancy practice in today’s competitive and challenge-ridden world is a slow process. However, if you do not make it your priority, it is easy to get lost in the chaos of the competition.

With the UK government keen on breaking the monopoly of the Big Four and giving smaller players an opportunity to boost their credibility and revenue, the scalability dream has become more accessible. Adding auditing as a new service can not only help accountants remain relevant in the market but also add a new revenue stream to their firm.

However, to survive and outshine in a new field, you require excellent knowledge and dedicated service. Outsourcing your accounting audit process can help you achieve this as outsourcing firms hire the best talent in the industry. Additionally, outsourced resources are constantly abreast with the latest developments in the auditing world and can help your business grow quickly.

When you are looking to integrate the latest technology into your process

Another major problem faced by small and medium accountancy firms is access to the latest, cutting-edge technology. It is no secret that clients now expect more productivity and efficiency from accountants at the same prices. The only way to achieve this is to integrate the latest technology into your processes to make them more efficient and error-free.

Several accountants, however, struggle to achieve this due to limited financial capability and a lack of time and resources to train their staff. Audit support and preparation services can facilitate the technical upgradation of accounting processes as outsourced professionals are extensively trained on the latest software.

Besides, some of the top accounting firms also have tie-ups with leading accounting and auditing software providers, making things simpler and more effective for practices.

THE BEST TIME TO OUTSOURCE IS RIGHT NOW!

The current state of the UK auditing industry is the most favourable for accounting firms to enter the market. Although the industry is yet to regain complete credibility, things are starting to get better.

The FRC’s 2021 report on the current state of audit identified that the quality of financial audits in the UK is improving, thanks to effective audit monitoring and regulation. In fact, the FRC estimates that in the next two years, at least 90% of the FTSE 350 audits will require no or limited improvements.

With clients gradually regaining trust in audit companies and the government making joint audits imperative, 2022 is the best year for accountancy practices to step into the auditing market.

If your firm does not have the staffing, financial or technical capacity to do so, outsourcing audit support services to a dedicated service provider can facilitate an easy transition.

Identifying the growing opportunities in this area, several accounting outsourcing firms also now provide dedicated audit support and preparation services.

Customised Audit Support Services with QXAS

QXAS is a leading accounting outsourcing firm with operations in several countries worldwide, including the UK. We specialise in dedicated audit support services with over 100+ professional auditors ready to start working on new projects immediately.

At QX, we adopt a ‘People First’ approach in all our undertakings and tailor our services to the goals and advantage of our clients. We have a rich 18+ years of experience serving a wide range of clients and helping them boost profitability and scale their firm.

We understand the importance of technology in making the auditing processes efficient and hassle-free. To provide our clients with the best technological solutions, we have partnered with MyWorkpapers, enabling accountants to ditch physical paperwork and move to a cloud-based solution.

What sets us apart from our competition is:

• Customised services and dedicated engagement models
• India’s first GDPR and ISO 27701 compliant accounting outsourcing company
• 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
• Professionally affiliated with prestigious organisations like ICAEW and ACCA
• Proud winner of a 100% score in all BSI audits

To learn more about our services or avail a free trial, dial +44 208 146 0808, drop us an email at [email protected], or click here.