Today, the majority of accounting firms in the USA, UK, and other foreign nations have high labour rates – thus, they are preferring to outsource accounting services from other nations with affordable labour rates. It is becoming common practice – accounting outsourcing as the cost of hiring a professional accountant and CPA staff in the US is quite expensive.
But, if we leave the expensive labour point aside, still, there are multiple benefits that outsourced accounting services can bring like effective services, improved productivity, increased profits and much more.
However, outsourcing for the accounting firm’s solution hasn’t turned out to be that great for some accounting firms. Not because outsourcing is a bad option – it is because accounting companies aren’t able to implement outsourcing accounting solutions in the right manner. The majority of CPA firms don’t know how can they achieve better results from outsourced accounting companies like CapActix to grow their business. That’s because an outsourcing service provider company is eventually just going to follow your orders.
Accounting Outsourcing Mistakes
If you are not getting the desired results after using outsourced accounting services for your accounting firm, then hold down for a moment and check out whether you aren’t committing any of the following mistakes.
#Mistake 1. Don’t define your goals
Okay, so you are getting better services at low rates and minimum management, then let’s just outsource accounting work. If you are outsourcing for accounting firms with this idea, then don’t do that – because you won’t achieve anything out of outsourcing unless you form a proper plan. You need to foremost define your objective from outsourcing services.
Now, you can’t outsource all of your accounting work from an Offshore accounting company. You should outsource accounting services that are time-consuming and require an optimum amount of attention from experts like bookkeeping, payroll, tax preparation, year-end and multiple other important yet time-consuming services. For instance, if you outsource bookkeeping services, then you will have plenty of free time to focus on management and marketing aspects of your business as bookkeeping takes up lots of time, but you can’t avoid it as bookkeeping is the foundation of all other accounting processes.
#Mistake 2. Don’t think about the interview process
Will you ever hire an in-house accountant in your company without a proper interview? Of course not, then how can you hire an outsource company without a proper interview. Yep, if you are just trusting some online comments or referrals from your friends, then don’t commit this mistake and conduct a proper interview season before hiring an outsourced company.
You must be wondering how will you conduct an interview when an outsourcing company is a thousand miles away from you. Well, folks, technology has made everything possible today. You can foremost interview outsource companies using writing communication via an email, once you approve a written interview, then you can take up a telephonic interview and finally move to video interview before finalizing the hiring process. Bypassing through three stages of the digital interview, you will be able to hire the perfect accounting outsourcing company even if your outsourcing company is located all the way back to India.
#Mistake 3. Don’t hire cheap freelancers
Okay, outsourcing accounting services is a cheap solution, but it doesn’t mean you will get good services after paying a penny. If to hire cheap accounting services, you appoint individual freelancers to handle your accounting operations for cheaper rates, then that’s going to one of the biggest mistakes for you. That’s because freelancers will be able to take up a limited amount of work and won’t offer complete accounting services because they will be trained in one part of the accounting process only.
However, if you hire a good and reputable accounting outsourcing company, then you can use their multiple accounting services and support from the highly professional accounting staff consists of accountants, tax experts, auditors, and others. So, don’t get lured by the cheap accounting services offered by freelancers and spend a little extra to get flawless accounting services.
#Mistake 4. Not setting up your expectations at the beginning
What is your purpose in hiring an outsourcing accounting company? You need to be clear about your expectations from your outsourced business partner from the very beginning of the contract so that nothing creates a problem for you and your new partner. When you don’t define your expectations and won’t legalize them through a written contract, then you won’t be able to achieve your outsourcing goals. There are plenty of different pointers that you need to be fully clear in like –
- When do you want accounting work to be delivered daily or weekly or biweekly?
- Which mode of communication will be preferred daily?
- How do you want to address issues? What are the issues for you and what is an emergency situation?
- What hours do you want to deliver work each day?
- When is it appropriate to ask for a raise?
- Are they allowed to outsource the work to a friend in busy times?
- What should they do if their Internet goes down?
#Mistake 5. Not having proper communication
Well, when you are outsourcing accounting work, then indeed you don’t have to micro-manage every aspect of the work as the outsourced company’s manager will handle everything for you. But this doesn’t mean that you completely ignore your outsourced workers and won’t regularly communicate with your project managers and get a report on the work progress. If you allow work to a company and won’t follow up, then this would be an enormous mistake on your part.
The outsourced accounting team might be fully trained and experienced, but if you want to get work done according to your style, then you have to communicate with the remote team and guide them when they aren’t following your vision. Regular communication is a key to success for a business organization whether operations are handled remotely or locally.
Here you can read the 6 Classic Benefits of Outsourcing Accounting Services for Accounting Firms
Implementation is a Key
When you are outsourcing for your accounting firms, then you have to put some resources into making an effective system to implement the outsourced accounting services. The proper training to in-house staff along with the utilization of the latest technology is essential to implement the outsourcing model in your firm. Accounting outsourcing will be a profitable venture for you only if you avoid all the common mistakes and implement this model with the right approach.
Find a perfect outsourced accounting service is also an important point here because a good service provider makes a huge difference. So, you can contact CapActix by email – [email protected]. or can call on +201-778-0509 and implement the outsourced model in your accounting firm without an error.