Outsourced accounting continues to be an alternative that companies chose to pursue instead of doing the work in-house. Many firm owners hesitate to outsource their accounting functions for several reasons. Few are detailed below:
- Myth 1 – Employment will go offshore
The first is the most prominent myth, as it outlines the fact that outsourcing pushes jobs overseas. This myth has been prevailing for a very long time; however, there are minimal points to back this data. The myth states that the same accounting functions that are done in the home country will now be obsolete.
If the work is outsourced, it doesn’t mean, the company employees have nothing else to do. Offshoring the high volume low-value work abroad frees up the time and resources and helps you focus on providing the outsourcing to an accounting expert. By utilizing an outsourcing accounting expert, you not only offer traditional services to clients, but you can also hire additional staff to assist with the new higher-margin services.
The above explanation debunks the myth that outsourcing causes jobs to go overseas. By taking advantage of accounting outsourcing, you not only help to upskill current staff, but you’re also in a position to offer more opportunities to the local workforce.
- Myth 2 – Lose control of accounting business
Accounting firms who consider outsourcing some of their functions get caught up and feel that they might lose control of their business over time. This myth tends to stem from the notion that since the work is getting done hundreds of miles away in a different country, it becomes much harder to supervise and maintain. It doesn’t need to be a significant concern if you select a reputed professional outsourcing company.
Ensure that all regulations and procedures should be agreed upon before any work begins and time should be spent with the new team to establish working practices. The owner should also be prepared to give up minimal control over specific processes, as they in the first place have contacted the outsourcing firm. Hence, regular audits of standards should be carried out to ascertain that appropriate procedures are being adhered to.
- Myth 3 – Security
The third myth that keeps on popping up is the security of the data that has been outsourced overseas. So, before partnering with an offshore organization, do your due diligence from a security perspective and especially when the information stored in the cloud. Ensure that the outsourced company follows world-class security standards such as ISO 27001, is GDPR-compliant and maintains Non-disclosure agreements.
- Myth 4 – Trust Issues
It is a fact that as much as the owner would protect and take care of the sensitive data and information, other companies wouldn’t. But owners need to understand that outsourced professionals also have business goals and reputation in the market. As they are professionals, they will help your company to spot any unusual business activity within your firm and will be in a better position to suggest more effective ways of running your financial affairs.
- Myth 5 – Time Management
The fifth is the time concern when a company outsources its work to a professional accounting firm, it saves and frees up both your time and that of your employees. Most outsourcing companies operate in systems, often taking benefit of cloud-based solutions to directly and conveniently store, save and exchange financial data and other relevant information between client and service provider. The technology makes it more straightforward and easy and keeps data and sensitive information confidential.
Thus, today’s technology and globalization make it easy to harness the true potential of outsourcing. In the UK outsourcing of accounting functions is on the rise, the more the business grows, the more complex your investments are likely to become. Rather than trying to guess the certain practices, consider relying on specialists who have both the time and the excellent skills necessary to keep your finances in order.