"John, do you have any plan as we go ahead and expand the business?", Mr Smith had called this high profile meeting to discuss the possible solutions of handling the accounting tasks. Somebody suggested going for Xero or other automated software. Others suggested hiring some more staff to cope up with the increased work pressure. John, Mr Smith's chief strategist, was sitting quietly, hearing the discussion patiently. Smith couldn't tolerate, and he asked John fiercely if he had any plan. John replied politely, "Let's go for account outsourcing". Eyebrows raised and his colleagues started opposing the plan. "It is too costly", "our data won't be secured", "we will need to review their work" etc. were the allegations. John could sense all this coming, and he was ready to counter the allegations. "Can I show you all a little presentation?", he took the permission.
"4 tips you should know before choosing an accounting outsourcing partner" was the title of his presentation.
We will take their trial services - "Smith, before choosing an outsourcing firm, we will give a small task to the firms to examine their service." We will test them on the following main points
- Turnaround time -How quickly can they complete the task and submit to us?
- The way of doing the accounting - We will check their way of doing the accounting and whether they take care of the accounting principles in doing the task.
- Analytical reports and other add-on services - "Smith we will also check whether they provide us relevant analytical reports so that we don't have to devote time in extracting the data."
We will assess data security tools
Our data is utmost crucial, and we will check the tools used by the outsourcing firm to prevent the data from unauthorised access. We will also ask the firm to walk us through the systems they use for maintaining the accounts. We will also ensure that the firm conducts process audits and periodic checks to ensure adequate internal controls.
We will go for the experience guns
Without taking anything away from the new firms which have enormous potential, we will bet on an experienced firm because it brings vast knowledge and pressure handling capacity with itself. Pro firm deals with various clients in multiple domains, so they can offer better insights and create more value for our business.
We will also see the agility of team
Change is the only constant goes right with accounting and finance also.Outsourcing firm should be flexible in adapting to the changed laws, amended tax provisions and changing innovative technologies. We want to choose a partner who uses the software which is upto date.
After watching the presentation, everyone including Mr Smith started clapping happily. They now learnt the tips required in assessing an accounting outsourcing partner. They also wanted to know about the benefits of outsourcing accounting. Rather than giving another presentation, John simply redirected to our blog on accounts outsourcing services to https://especia.co.in/post/outsource-accounting-vs-inhouse-accounting