Accounting 101

Five Common Outsourcing Myths

There is no reason to still be afraid of outsourcing.

Outsourcing is a term that is often met by either hesitation or criticism. Fear of a data breach, shoddy turnaround of work, and lack of communication with the outsourced team are just some of the reasons that stops people being from outsourcing.

The accounting industry is no exception. The thought of accounting outsourcing is unappealing for many CPAs and accountants. Many of their reasons stem from the bad reputation that outsourcing garnered back in the 1990’s, when it was at its infancy.

But the scene has changed since. Accounting outsourcing service providers are knowledgeable, professional, and highly trained to do low-margin jobs like bookkeeping and payroll.

Most accounting business process outsourcing companies in India hire their staff only after rigorous tests and interviews. Communication skills are a must because the job demands that the outsourced team interacts with the employees of those companies utilizing the outsourced services .

If you are still wondering whether or not outsourcing is ideal for you, here are five doubts that CPAs commonly have about accounting outsourcing:

1) My CPA firm is too small to outsource.

Small companies have a larger competitive advantage if they decide to outsource services such as bookkeeping or payroll, as it puts more focus on high value services like corporate advisory which your clients will appreciate more. Plus, such services are also profitable and help the firm grow faster.

Most accounting business process outsourcing companies in India are experts in turning around bookkeeping, tax returns, and payroll jobs faster than an in-house team. Leverage that.

2) My practice staff will be left without work.

That will never happen. Accounting outsourcing providers are not here to take your jobs away from you. Instead they are here to take care of admin tasks which otherwise are time-consuming, tedious, and mundane.

Your practice staff, on the other hand, can be contributing value to your firm by expanding functions like forecasting, sales, auditing and even human resources!

3) My data is not secure with outsourcing partners.

In reality, your data is secure. We understand you are worried about losing control over data or dealing with a cybercrime in the future, but please be assured that many accounting business process outsourcing companies in India take proper precautions to keep sensitive info safe.

From installing firewalls, anti-virus, spam and spyware managing systems, and multiple internal server backups to having a data contingency plan – the accounting outsourcing providers cover it all.

4) My business is too complicated.

No problem! The outsourced staff is well-trained in various fields and businesses. In fact, they can work closely with you to understand your business and help you achieve a specialized reporting system and more efficient workflows.

If you want their advice over a decision, you can take so without any hesitation. They are here to help you grow your business, make it profitable, and ultimately be successful!

5) I won’t be able to manage a virtual team.

Wrong! In fact, you will find it much easier to keep tabs on your outsourced accounting team via Skype, Slack, and other project management tools. With proper planning, you can create a sense of transparency between your in-house staff and outsourced team.

Over to you.

Don’t let these doubts hold you back from outsourcing. It is a smart business move for those CPA firms that are looking to scale faster. Make your business more profitable with outsourcing.

Laurence is a manager at QX Accounting Services & Founder of Accounting Leaders. QX Accounting offers outsourced accounting services, tax return preparation, bookkeeping and payroll compliance for small to medium sized accounting firms. Laurence focuses on freeing up small practitioners in order to get them to focus on growing their practice.

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