Outsourcing a portion or the entirety of your accounting functions can be a lifesaver, especially when it’s about your compliance. But it can also become an added burden. Take note, though, that its results boil down to the decisions you made before signing a contract
So how do you find a dependable accounting outsourcing provider? And how can you ensure that they’re the right fit for your business?
In this article, we’ll show you how.
How to choose an accounting outsourcing provider
Assessing your needs and doing thorough research are the first two steps you must take to find a reliable accounting outsourcing company.
On top of that, you should also identify if they’ve already handled clients from your industry.
Read on as we break down the process below.
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Identify the service you need to outsource
Consider the following when identifying the service to outsource:
a. The human resource capacity of your accounting department
Assess the capabilities of your in-house accounting team.
What are their most time-consuming and repetitive duties? Do these tasks cause delays to other value-adding projects?
From there, identify the tasks that you’re confident of outsourcing to a third party. This way, your accountants can focus on more integral projects.
Meanwhile, if you’re doing accounting by yourself, you may want to outsource a part-time or a full-time accountant who can take over your accounting responsibilities.
The good thing with outsourcing is it allows you to start small and scale up as your business grows — saving you from the financial pressure of outsourcing a team of accountants immediately.
b. Available skills and expertise in-house
Finding qualified accountants is a real deal nowadays. With top businesses competing for the top talents in the accounting industry, it can be a challenge to hire an in-house expert to take care of high-level accounting functions.
It can be a source of concern if your business is growing. To continue its momentum, you need experts on board who can help you with budget planning, financial projections and finance transformation, among others.
If it’s the case for your business, outsourcing can increase your competitiveness.
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Search and shortlist qualified accounting service providers
Once you clearly understand the services you need to outsource, start searching for qualified accounting outsourcing providers.
Here are a few factors to examine during your search:
- Track record
- Expertise
- Years of operation
- Experience in your industry
- Knowledge of your state/country’s accounting and business regulations (especially with compliance)
- Location — onshore (located in the same country), nearshore (located in a nearby country or state), offshore (located in a different geographical region)
- Cost of services
- Company culture
- Accounting software and integrations
- Scalability and flexibility of services
You can use this list as a guide when evaluating candidates. However, it is not comprehensive. Your business may have distinct requirements that you must communicate clearly with those who made it onto your shortlist.
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Conduct due diligence
Always conduct your due diligence before starting any outsourcing engagements. If you’ve already selected an outsourcing provider, take your time verifying their reliability and the risks associated with outsourcing your accounting functions with them. Go and visit your prospective provider if needed, to see how they work at the back end.
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Thoroughly review all documents
It’s more of a reminder than a step — see that you’ve thoroughly read and reviewed all documents before signing them. If possible, ask a lawyer to read it for you so they can identify if there are any irregularities in the contract. This way, you can minimise potential risks and be confident of what you’re going into.
Onshore accounting service provider for Australian SMEs
Are you looking for a dependable accounting outsourcing provider? Consider ABJ Solutions. Headquarted in Sydney, we have a presence across Australia, giving you the confidence that you can turn to us whenever you need assistance with your accounting functions. For more information about our services, contact us today.
