Outsourced/Offshore Accounting Services cut the cost of hiring in-house accountants and lower operating costs without sacrificing efficiency or productivity. As a result, offshore accounting services are unquestionably a wise and prudent business decision. Many businesses choose to outsource their accounting services because outsourcing offers the best cost-benefit ratio. The most difficult step is finding a trustworthy outsourcing partner.
Before sending it to the potential outsourcing partner, you should create precisely and focused information on the project in question for further discussion and sign-off by top management in your company:
The Checklist to Choose your Next Offshore Accounting Partner
The project’s scope
This comprises a detailed description of the job to be done as well as how you want it done.
- Standards (both the firm’s service level expectations and your evaluation criteria for the outsourcing company)
- Detailed specifications (on non-standard contractual requirements; copies of the contract or any document that is setting how you govern your relationship)
- Team for the project (requirements, wishes, expectations)
Questions about management that need to be answered
You’ll start with a set of questions that you’ll have to answer internally. These documents allow you, your key stakeholders, and the internal decision-making unit to clearly define the extent of your needs and the goals you expect to achieve through outsourcing, and they may be revisited or amended if those needs and goals change. Outsourcing partners who care about their clients’ success will joyfully and honestly answer your questions right away, giving you the most accurate picture of what a future working relationship with them will look like and whether it will be a good fit.
- What is the composition of a dedicated group? What exactly are each team member’s responsibilities?
- What are the procedures for escalation?
- How involved will senior management be in the account’s strategy, development, and other aspects? What choices do you have?
- What is the management team’s experience level?
- Give a brief summary of the implementation team and their background. Will the implementation crew also serve as the after-sales support staff?
Questions related to the team
- What training programs have you put in place for your employees?
- How do you stay up to date on the newest industry standards and knowledge?
- Are you able to scale up quickly? How much time will be required? What would the procedure entail?
- Do you employ subcontractors for any of the project’s work?
- What security measures do you have in place to safeguard my company’s intellectual property in terms of data and information?
- Do you guarantee our IP’s data security and confidentiality, and do you have all legal and technical safeguards in place?
- When was the last time you upgraded your technology, and what was upgraded?
- Do you outsource any of your services?
Ownership of Intellectual Property
- Ownership of code, process, hardware, and licensing, among other things.
- Intellectual Property Rights
Ascertain that the quality of the results is assured. Standard industry certificates should be available to demonstrate the quality of the offshore accounting partner‘s services.
- What industry standards does the organization follow in the area to ensure quality and client satisfaction?
- During the project lifetime, what are the standard quality deliverables?
- Explain how the organization conducts evaluations, tests, and measures customer satisfaction.
- Describe the company’s software domain, applications, and infrastructure expertise (e.g. databases, networking, driver development, deployment technologies, and the internet, among others.)
- Describe the company’s software environment’s availability, including databases, application servers, and so on.
- Do you keep up with software industry leaders in terms of collaboration or support? (For example, Microsoft, IBM, and others.) Recruit those businesses.
- What are the most recent large-scale software projects that the company has worked on, in terms of lines of code?
- What tools do you use to author code, collect and report on code and quality metrics, defect tracking, and change management in your software life cycle?
Some More Factors to Consider
To decide if your outsourcing service provider is the ideal partner for your business, think about their immediate and long-term business goals. You can also inquire for references from their customers to gain first-hand information.
Identifying the financial stability of your offshore accounting partner can help you determine whether or not it will be able to survive in the long run. Fundamental analysis can be used to compare a company’s worth and performance to that of other companies in the same industry.
Compatibility on a Cultural Level
It’s also critical that your offshore accounting partner is familiar with your culture, as well as your company and personnel. Even when dealing with difficulties, this makes communication more direct and easy. The goal is to recognize and manage these disparities with care.
Record and Experience
Finally, examine your partner’s authenticity by learning about their industry experience and established track records. It’s also a good idea to do some research about the firm or ask for information directly from them. Examine their portfolios and samples if they have them. Because your outsourcing partner has the potential to make or break your business, it’s critical to thoroughly assess their capabilities before committing to work with them.
These also include:
- Resources and Technology
- Market Reputation
- Agility of Team
- Reliability of Services
- Minimal Supervision
- The Management Team
- The Service Level Agreement
- Data Security Measures Adopted
- Services Offered
- Scalability Potentials
- Stable Performance
- Wider Experience Portfolio
- Scale of Operations
- Ability to Meet Deadlines
- Employee Retention
What kind of outsourcing partner are you looking for, and how do they work?
After stating your specific requirements, you must investigate your potential outsource partner; this allows you to learn more about the company’s culture, business model, employees, management, technology, solutions, success, and security, and ultimately determine whether they are the right fit for the job.
Outsourced accounting services are a lifesaver since they save your business costs and improve the efficiency of your operations. By considering these aspects when choosing an outsourced/offshore accounting partner. You’d be safe and gain a lot of benefits in terms of cost, efficiency, knowledge, and, most importantly, high professionalism. Finding a useful business partner in an outsourcing firm who can help you avoid all of the pitfalls stated above and come to your rescue if the project becomes complicated is gold and working with such a company will allow you to fully utilize the outsourced potential.
Why Should You Choose CapActix?
CapActix is an exclusive and tried-and-true solution supplier for all your accounting-related needs. With our various engagement models, we not only provide bookkeeping and accounting services but also take care of the CFO function and play an important role as a strategic partner in your company’s growth. We aspire to be a global platform, thus it prioritizes by working hard and stepping outside of its constrained borders. Contact CapActix now!