Outsourcinggetting it right
www.qxas.us.com
What is it about outsourcing
therefore that some accountants
have taken to the...
Rationale for
outsourcing
UNDERSTAFFING
This is one of the main reasons why
CPAs look for help; there is under-
supply of ...
try this checklist
Check their company credentials
Check the outsourcer’s
credentials; how long have they
been trading, ho...
Upcoming SlideShare
Loading in …5
×

Rationale, Concerns and Checklist When Finding The Right Outsource Provider

279 views

Published on

Outsourcing is very beneficial to many accountants but it is important to take the time to assess your possible provider. We at QXAS have provided you with the rationale of outsourcing, the concerns and then a checklist of important aspects you should look for when choosing an outsourcing provider.

Published in: Business
  • Be the first to comment

  • Be the first to like this

Rationale, Concerns and Checklist When Finding The Right Outsource Provider

  1. 1. Outsourcinggetting it right www.qxas.us.com What is it about outsourcing therefore that some accountants have taken to their hearts and which others do not perceive? The use of outsourcing by accountants has long been established; in fact the US accounts for 70% of the global market in finance and accounting outsourcing but there is still a large proportion of CPAs who take the “over my dead body” position.
  2. 2. Rationale for outsourcing UNDERSTAFFING This is one of the main reasons why CPAs look for help; there is under- supply of qualified accountants which is a problem in itself but which is also driving up salaries. Recruitment for the right candidate is ultra-competitive. INCREASING WORKLOAD Tax season hell. Need we say more? COST SAVINGS The second reason links to the previous point but is also associated with general saving on areas such as accounting software licenses, associated employer costs, training, lighting and heating etc. Cutting costs can mean greater profitability or more competitive pricing to attract new business. BUSINESS GROWTH CPAs who acknowledge that some elements of their day-to- day bookkeeping and accounting functions can be undertaken by skilled outsourced accountants are able to free up their time to develop their existing clients and take on new ones. They are then able to focus on what they need to build their business like skilling up and offering additional higher billing services such as wealth and tax management. Concerns about outsourcing CPAs who outsource have considered the risks and have made a decision that using the right supplier enables them to minimize the risks to an acceptable level. LOSS OF CONTROL Other than the fact that the person doing the work isn’t physically sitting in the office with you, you have just as much control over what your outsourced accountant does, how they do it and when. When you work with QXAS Inc, an accountant is appointed to you and undertakes your work for you. You can contact them on a local call number and they work the same office hours as you. If you opt for the secure remote access model, they can work directly on your accounts on your server so you see what they are doing. SECURITY Your clients’ data has to be managed carefully as a data breach could be catastrophic; and yet the security level QXAS Inc operates at is likely be far higher than you operate within your own office. STAFF LOSS Many believe that to use an outsourcer, you have to lay off some of your staff; the reality couldn’t be further from that perception. Outsourcing supplements existing staff, enables them to do what they are good at and focus on higher billing work. In fact, research has shown that firms who outsource are more likely to increase their workforce than decrease it.* Outsourcing - getting it right Outsourcing - getting it right The Accounting Industry in the Age of Globalization and Offshore Outsourcing, Ryan P Daley, April 2008
  3. 3. try this checklist Check their company credentials Check the outsourcer’s credentials; how long have they been trading, how profitable is the company? If you can, pay them a visit and meet the people who will work on your account. Data security standards Check how they would handle your precious data; where is it stored, does it go out of the country; what security do they have in their offices? The right experience Do they have people who have worked in US accounting and taxation and do they maintain a regular program of training? Take up references Ask to speak to some of their other clients, preferably businesses like yours to get a good understanding about how they operate, the pluses and negatives of their operation. Working hours? Do they work your hours or their own? Whilst a quick turnaround time is great, if you are never able to speak to the people working on your account, that benefit will be very short lived. Commitment clarity Do you have to commit to months of work or will they work ad hoc? Make sure they are happy with ad hoc work and that you don’t have to commit to purchasing hundreds of hours of their time each month (unless of course you want to). Give them a trial job You could give them work you have already undertaken yourself to assess how it compares or even give them some work you need to get done; check how quickly they turn the work around, look at the accuracy, the presentation and look for value-adds like analysis for example. Which accounting software can they use? You need to ensure that they work with the same software as you do; you don’t want to have to translate files from one format to another. What work can they do? Do they have the capacity to look after all of your bookkeeping for you or are they just interested in the basics? If you are planning to work in partnership with someone you would want to know all about them – talk to QXAS Inc about how they operate, let them take the checklist test, talk to some of their clients – and then become a CPA who understands why many accountants use outsourcing. Thinking of outsourcing? NEW JERSEY 248 Lorraine Avenue Upper Montclair NJ 07043 T: +551-227-8165 E: contact@qxas.us.com

×