Advantages of offshoring for Accounting firms
Accounting firms, big or small, are increasingly benefiting from the offshoring model. Finance and accounts are an essential part of all businesses. Even if it isn’t the core business of a company, it is still highly important. A small mistake in a process can significantly cost a company. It is meticulous work demanding a lot of time and attention to details. It is the reason companies prefer to outsource their accounting and bookkeeping, and other related services, to accounting firms.
As a result, accounting firms in the USA and UK are finding themselves overburdened with work. With every new client, they take on, their responsibility increases. But the lack of resources leads to decreased productivity and poor quality of work. In such situations, offshoring has many advantages to offer accounting firms. Small accounting firms can especially benefit from this model. Let’s take a look at some of the advantages of offshoring for accounting firms.
There are numerous tasks outsourced by businesses to accounting firms. While some tasks require the expertise of accountants, there are others that don’t necessarily demand their attention. Yet, they are required to do them because of the limited number of employees in the firm. The cost of hiring and managing in-house employees for various jobs can be monumental. So the work is delegated to the existing employees, which can lead to their focus being diverted from high-value tasks. It can cause a drop in employee productivity, which can impact the company’s reputation with its clients. By offshoring, accounting firms can hire employees for their firm at a reduced cost, which is an ideal solution for lack of money and employees both. Your in-house accountants get the much-needed assistance in work from their offshore employees.
Improved quality of work
As stated earlier, accounting errors can be disastrous for a company. A large amount of work and not enough hands on deck can mean mistakes and poor work quality. Offshoring allows you to hire talented and experienced accountants who know the gravity of their work and ensure compliance with all the state and federal rules. They are familiar with the rules and regulations and keep up with all the latest changes in their line of work. With the workload decreased, your in-house accountants are also better focused, which allows them to perform their jobs up to the standard expected of them with no errors that might lead to any audits and penalties. There are no mistakes and no delays.
There are times when a firm has had to turn away potential clients because of reaching their peak workload. Business growth and expansion can only be attained by getting new clients, and that can only be attained when you have the required infrastructure in place. Not only does that mean more human resources, but also a workspace, software and hardware, and other overheads. It can be incredibly challenging for a small accounting firm to adjust these expenses within their limited budget. But offshoring makes scaling a business easy. You can hire dedicated employees without spending on any infrastructure. It allows the firms to take on new clients without spending a massive amount to supplement their growth. It is the quickest and the most cost-effective solution for growing your firm.
Scaling up and down with ease
Accounting tasks can be seasonal in nature. There are certain services that only require to be carried out during certain months in a year, such as tax preparation. In these months, the firm’s workload usually increases a lot, leading to increased pressure and stress. But it is impractical to hire a full-time in-house employee for the whole year for a job that needs two or three months at most. It is a waste of precious resources. Offshoring allows the accounting firms to scale up and down as required. Since the offshore service providers have potential candidates available to them at all times, short notice is all that is needed to hire or let go of a remote employee. There is no hassle. The accounting firm can hire extra sets of hands during peak season, easing the workload of their in-house team, and then letting them go when the job is done. It is quick and efficient.
Additional services to clients
Offshoring allows you to hire any employee at reduced prices. Whether you need an expert accountant, bookkeeper, financial analyst, or tax preparation specialist, the offshore service providers offer a variety of services at all experience levels. It allows you to provide more services to your clients without having to worry about hiring in-house employees. With various services being offered in one place, it makes your accounting firm stand out in the market and makes you more lucrative to potential clients. It gives you an edge over your competitors.
Advantages of offshoring for accounting firms are manifold, and if you are an accounting firm looking for a cost-effective solution to boost productivity and efficiency, how about considering offshoring?