Accounting is an essential aspect of any organizations business operations, and financial data contained in income and expenditure statements for example, helps businesses make informed decisions and formulate successful strategies for growth. For accounting firms, while they may spend most of their time working on their clients’ financial accounts, their own are of course, just as important.
Fortunately, outsourcing tax preparation services can alleviate much of the burden for busy accounting firms, but to ensure the outsourcing journey runs without a hitch, there are a few things to keep in mind that can prevent relationship-damaging errors from occurring:
- Your outsourcing goals must be properly and clearly defined
Outsourced bookkeeping, accounting and tax preparation can be enormously beneficial for accounting firms, but only when that firm has clear goals that have been communicated to the third party service provider.
Whether you want to save money, save time on basic but repetitive accounting functions, or gain access to specialist services, what you expect to achieve from the relationship must be clearly communicated to the outsourcing provider, otherwise you may well not get the results you expect.
2. Use only those services that you really need
It’s not uncommon for an outsourcing provider to try and convince you that you need to sign up for multiple services, but it’s important that you have a clear understanding of your needs before entering into any discussions about additional services.
Once you know what you need, and have found a company who can meet those needs without pushing you into signing up for other services, you can begin to move things forward.
3. Carefully assess your chosen outsourcing company
Find out as much as you can about a third party service provider before signing up with them, and ideally, this should include your own independent research, followed by a telephone or video call with their management team. If something doesn’t feel right, go with your gut, and move on with your search.
4. Don’t always opt for the company offering the lowest prices
While many times, the sole objective for accounting firms wanting to outsource, is to save money, that doesn’t mean that choosing a company based purely on their prices, is the most sensible solution. Paying less might not mean that you get the quality of service you need, and could even add to your workload instead of reducing it, particularly if you’re having to chase them up over deadlines or correct inaccuracies. Paying more than you anticipated for outsourcing can still save you money in the long term, and could mean that your clients are more satisfied, too.
5. Make your requirements official before signing anything
While a conversation with your chosen outsourcing provider via email or over the phone to voice your expectations is great, nothing can compare to the legalities of a written agreement, signed by both parties. Whether you choose to outsource bookkeeping, accounting or tax preparation (or a combination of all 3), formally document such things as the number of hours you expect them to work, how you will communicate, how often certain tasks should be carried out (like reconciliation), and how problems should be tackled.
You may still make mistakes when outsourcing, but if you keep the five things listed above in mind, it’s doubtful that you’ll go too far wrong, and should be able to enjoy a fulfilling experiencing that reduces your stress and labor levels, while keeping your clients satisfied.
