Why are more accountants turning to outsourcing

1. Why are more accountants turning to outsourcing?

Over recent years, particularly since the COVID-19 pandemic, we have seen a rise in the number of businesses using outsourcing to enable them to run and grow their business.

This is also true of accountancy firms. Many are seeking an alternative to recruiting additional in-house employees. Often Accountants are bogged down with completing repetitive accounting/bookkeeping tasks rather than focusing on adding value to their clients or growing their own practice. Whilst these activities are the backbone of any accounting practice, they are also repetitive and time-consuming.

Outsourcing is not right for every accountancy practice but, in many cases, it can provide the flexible resource needed to carry out the everyday repetitive accounting tasks that take up so much time, freeing up valuable time to focus on increasing revenue for you and your clients.

So, what are the reasons behind the increase in outsourcing?

There are many reasons for seeking outsourced resources, and whether you are an accountancy firm or not, it is important to choose your outsourcing partner very carefully.

Below are some of the reasons our Accountant clients use outsourced accounting and bookkeeping services.

Reasons Accountants are turning to outsourcing

Cost-effective – Outsourcing is often more cost-effective than recruiting an employee. You don’t have the costs associated with recruitment, such as agency fees, advertisement costs, or the hidden cost of reviewing applications and interviewing candidates.

Working with an outsource company also means that you don’t have to pay additional employers costs such as Employers National Insurance contributions, Pension contributions, Holiday pay, or sick pay.

Efficiency – Having a skilled reliable outsourced team working on your everyday accounts and bookkeeping activities means you and your team can focus on other tasks. All those time-consuming repetitive tasks can be taken care of, without you and your team being distracted, allowing you to focus on your clients and the activities that drive revenue.

Recruitment difficulties – Currently, there is a shortage of experienced Accountants & Bookkeepers. Therefore many companies are looking to outsource overseas as they are not able to attract, and retain, the right resource through the traditional employment route.

Experience and Expertise – Often the reason for outsourcing in the first place is to bridge the skills gap. Outsourcing to a fully qualified and experienced team gives you access to skills and knowledge that you may not have available in your existing team.

Tech – Outsourced accounting and bookkeeping services will usually have a full suite of the latest software available, enabling them to process your clients’ accounts swiftly and accurately whilst maintaining total transparency.

Peace of mind – You can’t put a price on peace of mind. Knowing that all tasks are taken care of, from daily bookkeeping entries to accounts being completed and filed on time, provides that peace of mind.