Myths of Accounting Outsourcing

Managing a company isn’t easy. Managing everything at once is a challenge for any accounting firm, whether small, midsized, or large. It is impossible for them to ignore any aspect of the business.

The majority of the time, however, they struggle to balance all the different things in their kitty without interfering with other routine tasks, such as accounting. When it comes to achieving 100% success, it’s best to run some tasks automatically.

Outsource your accounting! This mantra works as a magic mantra for overburdened accounting firms and is no longer a secret. Despite their reluctance, accounting firms are baffled by the idea of their outsourcing accounting.

Let’s bust some myths about accounting outsourcing. Keep reading!

Myths about Accounting Outsourcing

MYTH#1: Small- to mid-sized accounting firms should not outsource.     

There is no such thing. Small and mid-sized accounting firms need to spend more time with themselves to do such things as build their brand name and acquire large client bases, as well as cater to the needs of the existing clientele. Providing services to growing firms is always a good idea, which is why outsourcing firms are prepared to provide those services.

MYTH#2: Loss of control over the company

You might be surprised to learn that the outsourcing firm’s team will work as an extension of your in-house team. The outsourcing team will follow your protocols, work towards your KPIs, keep you informed about their performance, and deliver on time reports as per your instructions.

In any case, accounting firms should make sure that the outsourcing firm clearly defines and agrees upon the regulations in advance.

MYTH#3: Data security is compromised!

Data security is of utmost importance to accounting outsourcing firms, and they won’t compromise on it. Don’t worry about data breaches. It is important to choose an outsourcing partner that complies with GDPR. Make sure the firm follows security standards like ISO 27001 as well.

MYTH#4: Quality cannot be compromised!

It affects the team of accounting outsourcing firms the same way it affects your own firm. Especially when the firm has seasoned accountants who are adept at accounting, bookkeeping, taxation, payroll, and audit support.

It may be necessary to properly evaluate the outsourcer. Ask the outsourcing partner for testimonials and ask about the experience of existing clients (Accounting firms).

MYTH#5: Communication is difficult!

Offshoring accounting work to a foreign company is believed to be a myth. Indian accounting outsourcing firms are proficient in not only English language communication but also bookkeeping, accounting, and taxation.

MYTH#6: Cost-cutting is the only thing happening!

Definitely not! The goal is not just to cut costs, but to improve your company as a whole. Skilled workers are available for a fraction of the cost of your in-house accountant, thus saving you a lot of money; however, they also help you reach –

• Reduced workload for your in-house team, enabling them to focus on other aspects of the business.
• Scalability was improved by outsourcing more work on short notice or by outsourcing to more or fewer people.
• As a result of outsourcing, you will be able to spend more time thinking about your clients than on drudgery.

MYTH#7: Outsourcing companies must be large

Contrary to the above myth, outsourcing firms of any size can handle large amounts of work. In order to meet the needs of accounting firms, they acquire the right knowledge, the right strategy, and the appropriate resources.

Be sure they share testimonials of their clients, and/or offer a trial that can be used to gauge the quality of their work.

You have probably read the blog in its entirety and have removed any uncertainties you may have about accounting outsourcing if you have reached this point.

For more information on how we can help you grow your business and provide a satisfying customer experience, contact us or email us at info@neilaccountant.com.