The leading providers of accounting outsource services have amassed decades of experience helping major accounting firms in the UK. The country’s leading accounting firms like PwC, Grant Thornton UK, RSM, etc., have used outsourcing services for almost two decades. These firms have effectively set up two teams of highly qualified accounting professions – an in-house workforce located in the UK and offshore teams consisting of accounting professionals who are trained in UK accounting standards.
The Emergence of Outsourcing Services as a Strategic Tool
In the past, the main benefit of partnering with providers of accounting outsource services was cost reductions. Offshore accounting experts are just as competent as in-house accountants from the UK. They use the same accounting software tools to provide similar quality of work. However, offshore accountants charge up to four times less than accountants from the UK. Hence, cost-cutting measures have always been at the forefront of outsourcing strategies.
In the last three to five years, accounting firms in the UK have realized that cost-cutting isn’t the only key benefit of outsourcing. These firms are now using outsourcing services to create real sustained value for their organizations. Leading accountancy firms in the UK are now strategically leveraging their offshore partnerships to –
Address Staffing Shortages
The shortage of talented accounting professionals in the UK is a rising threat. For firms that want to expand every year, overcoming the labour shortage obstacle in a cost-effective manner is vital. Using offshore accounting teams is the best way to do so. By tapping into the global talent pool, accounting firms in the UK can even add capabilities to their workforces that they don’t have in-house. For instance, if a firm outsources its payroll management responsibilities, its in-house employees can focus on other duties like offering consultancy services to clients.
Gain Competitive Advantage
The accounting firms in the UK that have made efforts to access global pools of accounting talent have also been able to adopt technological tools faster. Since cloud accounting is currently the norm in the global accounting industry, partnering with technologically advanced offshore accountants gives local firms a strong advantage over their competitors.
Using cloud accountancy tools, offshore accountants are able to execute routine accounting, bookkeeping, and payroll management tasks with relative ease. As a result, accounting firms in the UK get to take on more work, offer more services, and stay ahead of competing firms.
Create New Accountancy Models
In the past, refusing clients was the norm for many large and small-scale accounting firms in the UK. After all, offering services such as bookkeeping meant putting in a lot of work for very little returns. Now, with offshore workforces, these tasks aren’t trivial or uneconomical anymore.
Instead of risking relationships with potential clients (by refusing to work with them), accounting firms can now take on as many tedious tasks as they want and still make the time to focus on acquiring new clients, offering advisory services, etc. If your in-house staff is efficient at building relationships with target clients and your outsourcing team is good at routine administrative tasks, the firm can focus its time and energy on all types of work.
Ambitious accounting firms in the UK now use outsourcing services as strategic tools to establish their presence in this rapidly changing accountancy marketplace. Saving money is an additional perk!
