Whether it’s cost savings, scalability, or internal fraud risk reduction, outsourcing accounting services has proven to work for countless firms across the globe. But with its benefits also come drawbacks that need more than just a look-see.
If you consider offshore accounting a viable option for your business, then you would need to understand its intricacies, especially the most common concerns and issues that come with it. And as you explore, you’ll also probably come across misconceptions that need debunking.
This blog offers practical workarounds to help your firm break the limitations of outsourcing in accounting and dispel misconceptions about outsourced accounting services.
Are There Any Chief Disadvantages of Outsourcing for Accounting Firms?
Outsourcing can work wonders for your accounting firm, especially if you tap the right team. Don’t fall short of maximising the benefits that offshore accounting services can bring you. Here are the top 6 Cs you should do enough research on when offshoring some of the key functions of your firm.
1. Concerns Regarding Quality
Most accounting firms that come to us need additional manpower to serve their clients – but not so much their internal operations. With ample quality control, outsourced services for accounting firm clients produce great results: accurate tax filing, exceptional bookkeeping skills, and ultimately, increased conversions. Never lower your standards when it comes to accounting staffing services.
2. Cultural and Language Barriers
3. Cost-Related Issues
When you partner with a trusted outsourced accounting team, you won’t have to deal with hidden charges, unexpected expenses, and currency conversion miscalculations. It’s important for your accounting firm to outsource a team with a proven track record in accounting skills proficiency.
4. Challenges on IT Security and Compatibility
With cyber threats on the rise, accounting firms feel uneasy about the idea of trusting strangers on the other side of the globe. On top of the growing cybersecurity concerns, lack of software compatibility and training also adds to firms’ reluctance to build an offshore team.
To mitigate these risks, you must partner with a trusted offshore accounting service provider with a proven cybersecurity track record and a solid list of accounting tech partners.
5. Compliance Issues
6. Consequences of Overdependence
Finally, there is also the issue of overdependence on your accounting staffing services. If one of your staff files for maternity leave, your operations might be put to an indefinite halt. Moreover, the number of turnover decisions in your outsourced team could increase, especially if compliance issues are also in the mix.
1. Cost-Effectiveness is the Best Possible Reason for Outsourcing
To drive business growth, securing an elite pool of accounting talent that’s aligned to your company’s goals and values is key – be they an in-house or an offshore team. And while cost-cutting is rational when it comes to your business operations, top talent knows no nationality or territory. To put it simply: if you find gold, you find gold.
2. Outsourcing is Only for Short-Term Projects
The truth of the matter is that high-impact and long-term projects don’t require in-house teams – they require driven, digitally adept, innovation-oriented, and quick-thinking brains. Top-quality outsourced teams are determined, goal-oriented, and willing to align your vision with theirs. They honor and respect the mission, values, and ethos of your accounting firm, while still being able to bring fresh ideas to the table.
3. Security Risks are Inevitable When Outsourcing
Whether cloud, blockchain, or any other type of data storage, certain security risks will arise, especially when it comes to client-owned data. This is where tapping reputable companies come in – those who honor legal regulations, observe stringent cybersecurity standards, and possess a proven track record of high employee morale through awards and certifications, like this one.
So, Is It Worth Hiring Outsourced Accountants?
Figuring out the outsourcing process (and how to get it to work to your firm’s advantage) can be quite a puzzle. The options in the market seem to be endless – from freelancers with high accounting expertise all the way to overseas firms offering business solutions packages that promise unbridled profitability.
But what matters at the end of the day is the quality of your experience with outsourced accountants, which largely depends on the kind of global team you tap. And while this mostly boils down to your level of research, your business most likely takes up all the time you have.
It can be quite confusing and tedious when it comes to deciding on which firm or agent to work with, especially with the difficulty that comes with background checking, quality control, and hidden cost concerns, among other possible problems.
This is where TOA Global comes in.
How TOA Global Addresses the Challenges of Outsourcing
Considering the issues above on outsourced accounting services, TOA Global addresses these as discussed below:
1. Guaranteed Top-Quality Accounting Work
TOA Global is partnered with Ab2 Institute of Accounting, which offers courses on accounting that are catered to the level of mastery in accounting required by your firm. With over 4,000 enrolled students and 1,000 firms operating in 4 countries, Ab2 Institute of Accounting prides itself on producing accounting staff with global competence.
Some courses include tax training, software and management courses, and other crucial courses on accounting. With TOA Global, account mismanagement risks are significantly reduced – or even eliminated – thanks to our elite team of accounting professionals.
2. No Struggle with Cultural and Language Barriers
One of the best non-native English speakers who are heavily influenced by the West, Philippines-based accounting professionals break any cultural barriers that you might be worrying about. With morning shift employees for Australia and New Zealand-based clients and night shift teams for North American clients, there are no time disparities that could get in the way of your communication with your offshore team.
3. Slashed (and Straightforward) Costs
With our cost calculator, you can choose the level of expertise of our outsourced accounting team members with transparency. Whether selecting a fresh graduate as an accounting executive assistant, or a senior-level accountant for your large-scale business, you can reap all the cost-slashing benefits of accounting outsourcing services without having to deal with hidden or unexpected fees with TOA Global.
4. Tried-and-Tested Cybersecurity Measures
TOA Global prides itself on standardised and up-to-date software and technological systems. We also have a centralised ticketing system to streamline IT-related concerns among our talents, as well as enterprise-grade cybersecurity programs and applications. TOA Global also implements a ban on employee offsite access to company accounts to maintain ultra-enhanced cybersecurity for our client accounts.
5. Detailed Contracts
With TOA Global, contract details are a top priority – working hours, compensation, and compliance with laws are all considered and implemented. We honor and prioritise the requests of our clients, so we hire compliant and trustworthy accounting teams.
6. Good Professional Relationships
Professional is how we operate. We supply the accounting-related demands of your business while keeping your day-to-day business operations smooth. At TOA Global, you can request for an intern to substitute for your main accounting staff who goes on a maternity leave. Upon the return of your team member from leave, your accounting interns can stay for up to 2 weeks for a seamless handover.
Accounting Revolutionised: Experience the TOA Difference Today
An elite outsourced team is what accounting firms need, especially for their client-centered accounting tasks. It takes the necessary regulations for accounting professionals off your plate and into its system, while still giving you the benefit of significant cost reduction that an in-house accounting and/or bookkeeping team simply cannot give you.
For over 10 years, TOA Global has operated in and mastered offshore accounting solutions for accounting firms of various sizes and scales in North America, Australia, and New Zealand. We have global teams specialising in auditing, accounting, bookkeeping, and executive assistance that can help you grow your firm exponentially.
Start outsourcing your accounting teams today by getting in touch with TOA Global.