Why Accountants are Outsourcing
Every accountant and their dog is talking about how they plan to move to an advisory practice and offer high value services, to help their clients grow their businesses & wealth. The fact is however, that it’s the time consuming compliance jobs that bring customers to your door. It’s not that you don’t want to do this work, it’s just that you know that you could be doing so much more. Furthermore, it’s a consumers market and clients want more, for the same or lower price.
Outsourcing has gained a lot of ground and been welcomed in the accounting industry as firms strive to respond to these challenges, improve efficiency and deliver more for clients than ever before.
Here’s a list of reasons why you should consider outsourcing for your practice:
Lack of skilled or willing resources
Currently in the market there appears to be a lack of experienced and affordable resources. Many fresh graduates are unwilling to do their time in practice on bookkeeping and compliance tasks. Those that do perform these tasks quickly disengage and are always on the lookout for something new and exciting. Because of this, those that have done the 2-3 years of compliance work to learn the ropes, are quickly snapped up and are often overpaid. The solution for some firms is to simply move these tasks elsewhere.
Focus more on “higher value” services for your clients
By transferring time consuming tasks offshore practices have more time to offer advisory services that really help their clients. To remain competitive in today’s industry, accounting practices need to offer more personalised services to attract and more importantly retain clients long-term.
Expedite processes and service delivery time to clients
Outsourcing allows you to have extra hands on deck that are all highly-qualified and experienced. The processes through which services are delivered are tried and tested resulting in a quicker turnaround. The speed of service delivery is one of the most important factors potential clients consider when choosing firms so this is very beneficial side effect of outsourcing.
Provide additional services to your clients
Outsourcing allows practices to tap into a pool of skilled and trained resources, who are experienced in performing the tasks you want to offer. For example, you could grow your practice by offering outsourced bookkeeping services. The outsourcing provider already has skilled expertise in place, eliminating the need to hire staff to support this additional service option.
Implement new technologies
A reputable outsourcing company will offer a range of accounting system platforms so that they can integrate with many businesses. They’ll also take on the responsibility of ensuring that the technology is the most up-to-date version available and will manage upgrades as needed. This results in your firm having access to new technologies without having to bear the full costs.
Provide real time data to your clients
Using the technology provided by an outsource service provider, your clients get to access real-time data that is guaranteed safe and secured. The data is backed up by Cloud technology with redundant security measures too so unauthorised access will be prevented.
Practices can reduce overheads by removing the expenses that come with having in-house staff, such as new hardware and equipment, employee benefits, and other operating costs. In addition to this, the average wage rates of an accountant in the Philippines is 60% less than what you would pay an accountant in Australia.
Good outsourcing providers will provide scorecards for firms to gain insight into their own efficiencies by tracking KPIs. Reports should also be provided regularly to keep track of the outsourcing objectives within a specific time frame. Continuous improvements can then be made.
Outsourcing can be a positive change factor for a firm, improving efficiency and productivity, and allowing key staff the time to offer more services to clients. In this highly competitive industry many practices are already outsourcing to receive these benefits.
If you want to know more, see us at the Accounting Business Expo
Happening from 20 to 21 March in Sydney, ABE 2019 is all about being better, bigger, and bolder. We’re excited to announce hammerjack’s participation with an exclusive ABE-only offer!
Visit Stand B13. Register your free ticket here until 19 Mar: Register.
For more, listen to this podcast by hammerjack’s director Nick Hastings on Accountants Daily Insider.