Accounting outsourcing has now received significant attention from companies seeking to cut expenses on their balance sheets and improve the efficiency of their financial management services. In this way, companies may address a specific need for expertise, increased efficiency and better core business performance through leveraging the service provision of a reliable outsourced bookkeeping or accounting firm. However, to achieve this there are several key factors that have to be considered when selecting the right accounting outsourcing partner. Below is a checklist to assist anyone in choosing an appropriate accounting outsourcing partner.
1. Reputation
The most decisive sign of the reliability and professionalism of the accounting outsourcing provider is its reputation. A good firm works all the time towards accuracy, integrity and customer satisfaction which makes contracting them in the long run easier. The first thing you would want to do before looking at a potential partner’s credibility is to read through their client feedback, case studies, and reviews. Search for some positive things told about them in regards to their timeliness, professionalism, and punctuality. Another thing that would be useful for an organisation to do is to request references and to talk to other clients to find out for themselves how the firm handles outsourced bookkeeping.
Outsourcing partners in this context must meet the requirements of reliability as well as commitment to service quality. When finding a partner you can be assured that your money will be in safe hands and will be handled with high accuracy.
2. Data Security
Security of data is very important by the time the accounting work is outsourced since the partner gains access to important financial information. Accounting outsourcing is also very sensitive to client information, therefore an ideal partner should have strict policies on data protection. Such measures might involve encryptions, secured servers, code of authentication, and periodic assessments of the level of security measures being implemented.
During the selection of an accounting outsourcing partner, do not hesitate to ask about their data protection policies, whether they have an ISO 27001 certificate, etc., if they comply with the GDPR. Dealing with providers having a good reputation and following stringent safety protocols for their client data will certainly let you feel relieved that your financial data is in safe hands and conforms to the legal requirements.
3. Communication
Intangible solutions such as communication are critical to the outsourcing relationship. Your accounting partner’s communication should be professional and streamlined so that you can share information, voice any issue or worry and follow the progress without difficulty. Frequency of the financial report status, current works and progress and the issues/issues arising/per questions that require answers are crucial for interdisciplinary work.
Proper communication should also be evaluated in your choice of an accounting outsourcing partner. You should ask how often they deliver these updates, through what means, and with whom would you be primarily dealing. Accounting and other financial reports reach you in good time so that you can always make informed decisions.
4. Accounting Software Proficiency
An area that is crucial in the modern world is the accuracy and efficient use of accounting software. One of the critical factors your chosen partner should have prior experience with the accounting software that you are using or planning on using. This will enhance the easy flow of data, effective use of data and productivity which results from work completion for pro-recovery reporting.
Make sure that the firm you are going to outsource with understands whether you are using QuickBooks, Xero, Sage or whichever accounting software you are using. They should simply fit into the system so you can avoid scenarios whereby you have to keep on learning how to use a new software or program, which often comes with lots of errors. The right partner will also be able to leverage advanced features within your software, enhancing the efficiency and accuracy of your financial processes.
5. Expertise in Accounting and Bookkeeping
The skills and experience of an outsourcing partner affect a company’s financial flow to a certain degree. Ensure that the firms you are considering partnering with have done accounting and bookkeeping before. A knowledgeable team will possess the ability to meet your financial demands and challenges, legal requirements, and meaningful analysis of your business performance.
See what questions to ask of the team members to be assigned to your account and any other services that the business offers (for example: tax services, payroll services, and financial services). Choose a partner that understands your business model or industry because that will enable the partner to meet your accounting needs effectively and increase your financial potential.
6. Alignment with Business Needs
The accounting needs of every business differ in some ways from others. Thus, analyse your specific accounting activities and decide on the level of competence required in an outsourcing partner. There will be simple clients who will need simple services such as keeping accounts while others will need services of outsourced bookkeeping, taxation, account analysis and management of cash flows among others.
However, outline your needs to be met by a potential partner and ensure that they can provide them. Ensure that the services provided meet your needs, and you will be in a position to get the best deal for outsourcing and hence better financial returns.
7. Clear Goals and Expectations
As any outsourcing partnership starts, the business must make sure that goals and expectations for outsourcing are set right at the onset. Specify the objective of accounting outsourcing mentioning particular processes you want to outsource as well as target results from outsourcing. Such clarity will enable you to clearly define your needs and mark the performance standard of the partner you are going to work with.
Share the questions and answers about goals with the potential partners and the ways they will contribute to their attainment. If your expectations are properly aligned from the beginning, then you will have the proper groundwork for outsourcing and its benefits for your business.
8. Understanding Pricing Models
It is important that accounting outsourcing providers use different fee structures like hourly or monthly rates, or per service. This means that considering these pricing models and other extra charges is crucial for assisting the clients to negotiate a reasonable price with their selected partner.
Ask for the breakdown of their charges and explain the charges for any other service that they offer. Comparing prices with several providers will enable you to identify your partner that will offer good value at a reasonable price. Choosing an open pricing model can also cut on unforeseen charges which is ideal for planning your financial needs as a business.
Wrapping Up
Selecting the correct accounting outsourcing partner firm is an important decision that has a long-term effect on your business’s financial fitness and productivity. Therefore, by gauging aspects like reputation, data protection protocols, mode of communication, experience in handling your software, the type of business you deal with, achievable goals, and cost structures you can make informed decisions that will help grow your company. If the concept of outsourcing your accounting is properly implemented, it contributes to increased credibility of your financial data, lower costs and the best of all – time that can be spent on achieving strategic goals.
Finding the right outsourcing partner for accounting services is not just about getting a service from a third party, but they are in fact becoming part of your team.
Coreint UK is one of the top accounting firms offering a wide range of outsourcing services in and outside the UK. Our services include accounting outsourcing, outsourced bookkeeping services, accounts receivable and payable services, payroll outsourcing, tax and VAT outsourcing, outsourced audit services, and management accounting. Let us take care of your company’s accounting needs and requirements so you can concentrate on building a successful company.
Contact us today for the best accounting outsourcing services near you that can help you streamline your process and save time and cost!
