Key Considerations for Outsourcing Bookkeeping or Accounting Services in the UK    

Every accounting firm looks deeper into their client processes and realises that they need to improve the efficiency of their operations, reduce costs, and improve the service provided to their clients. One way in which external accounting support is starting to gain considerable traction is through the outsourcing of the accounting or bookkeeping functions. However, the take up of outsourcing is a major decision and requires extensive thought and analysis to ensure you obtain the right partner and get the results that you desire. In this article we discuss what questions you should examine before sending out your accounting and bookkeeping services for outsourcing for your firm in the UK.    

Why Are UK Accounting Firms Exploring Outsourcing?    

Every client has a problem and as a firm you must first understand the bigger picture of the problem. Like every other industry the UK’s accounting industry is rather complex and multilayered. Firms are increasingly under pressure in the business space for regulations adherence, increasing payments for overheads and having to maintain great relations with their clients. Firms looking to grow often suffer from being overworked and under-resourced, which leads to essential business functions being neglected and lost within heaps of admin. This can be solved through outsourcing.    

There are a multitude of benefits that come from outsourcing accounting or bookkeeping services. The most obvious benefit is the sheer amount of time saved on non-core functions enabling focus on more crucial tasks such as client relations, business acquisitions or strategic planning. There is also a reduction in expenses, increasing accuracy, and enabling the company to benefit from highly specialised external skills and advanced technologies.    

Important Questions You Should Discuss With Possible Providers for the Services:    

It is very important for you to clarify certain details before you sign the paperwork. 

Here is a detailed list that will assist to conduct the evaluation:   

1. Credentials and Qualifications:   

How long have you worked with UK accounting firms? Do not accept vague responses. Focus on providers who have worked in the UK market and have sound knowledge of UK GAAP, taxation, and other relevant fields.   

What accounting services or bookkeeping services do you provide? Be precise in stating your expectations and confirm that the provider is able to fulfill them. For instance, do they cover from simple bookkeeping and payroll services to advanced ones like reporting, tax services, and management accounting?   

What is the background of your team? Ask what their certifications (ACA, ACCA, CIMA, etc.) are and how long do they stay with the firm on average. The more experienced and qualified the staff is, the better the service will be.   

Are you familiar with the accounting program we use? It is critical to having a smooth transition with the current systems in place. Check if the provider uses the accounting software you do, Xero, QuickBooks, Sage, or if they are willing to learn.   

2. Protection and Confidentiality:   

What steps do you take to guarantee data security and confidentiality? Data protection is crucial. 

Investigate their security protocols, data encryption strategies, access controls, and adherence to GDPR along with pertinent other regulations. Request proof of their security certifications and audits.   

What, in your case, are the criteria for communication and report submission? Set and maintain reporting and update intervals. Determine which reports and in what form will be provided and who will be your contact person. Learn what tools they use to communicate and timeframes for responses.    

What is your error or discrepancy resolution process? Even with the best processes, errors happen. Make sure you know how they resolve errors and how those errors are identified, corrected, and prevented from recurring.    

What are your service level agreements (SLA)? A service level agreement should be complete so that it defines the scope of services, performance metrics, turnaround times, and the responsibilities of both parties. Avoid signing the agreement before reviewing it carefully.    

In what manner do you deal with scalability? Some aspects of your business are likely to mature. Ensure that the provider has the ability to adjust the levels of service provision in relation to increase workload as well as decrease services when there are downshifts.    

What steps do you take in regards to disaster recovery? Your backup and recovery plans are very important to examine alongside business continuity plans to ensure your data and operation is safe in the case of unfortunate events.    

3. Cost and Contract:   

What is your model for determining prices? Be clear on their pricing models, whether based on hourly, fixed fee, or a blend of the two. 

Make sure no extra costs come out of nowhere.   

What does the contract encompass? Go through the contract thoroughly and check the terms of service, payment clauses, cancellation policies, and ownership rights.   

What is your schedule of payment? Specify the payment date and method of payment to be used.   

4. References and Testimonials:   

Do you have other UK accounting firms that you can use as references? From talking to other clients, one can learn what the provider’s strengths and weaknesses are.   

What proof do you have that validates your success? Search for claims that offer proof of them successfully achieving clients’ expectations.    

5. Cultural Fit and Communication:    

What culture and values do your company practices? Make sure to try to get a provider whose values resonate with your own. This ensures a more successful and collaborative relationship.   

How simple is it to interact with your team? Communication is important. Make sure that the teams feels approachable, and more importantly, you are able to get the information you need from them.   

Xcellency: Your Trusted Partner for Accounting Outsourcing   

At Xcellency, we appreciate the intricacies of accounting in the UK. 

Our service catalog sheds light on virtual bookkeeping, admin services, and other tailored resources geared towards clients in the UK. The professionals on our team are highly trained, motivated, and possess the skills necessary to deliver flawless, trustworthy, and affordable services.   

Building trusted long-term relationships with clients, alongside offering high-level data protection and transparent processes, is our primary objective. We are eager to attend to all of your concerns and will even provide referrals to prove our unmatched excellence.   

Eager to witness transformative growth in your accounting firm?   

Reach out to us for a consultation to better outline what you need. Using Xcellency’s outsourcing capabilities, achieving your business strategy is within grasp. Don’t allow administrative responsibilities to set you back. Get in touch with us today and fully capitalise on your firm’s potential.