Navigating the Challenges of Outsourcing in Modern Accounting Practices

1. Navigating the Challenges of Outsourcing in Modern Accounting Practices Driving change in an accounting practice is notoriously difficult Fin-eX Outsourcing runs through the change aspects that you'll need to grasp to make outsourcing or offshoring successful The metronome that is accounting and tax work, often makes for a workplace and culture that is change averse This is not a criticism. All organisations have rhythm and some order to what they do whether farming, construction or indeed accountancy But a lot has changed, and is changing, in the world around us more quickly than ever. That means the rules by which practices operate, the technology they use, and the needs of the clients, are shifting. Utilising outsourcing or offshoring requires change and for practices, looking to move their critical production work away from the confines of their office (or indeed the country in which they operate) can be a scary and risky proposition. A step change So, what changes will an accountancy firm go through when outsourcing or offshoring? As previously stated, you will have people potentially far away undertaking work on behalf of your firm. And if they are isolated, they will never be able to support your firm effectively. So, you must understand that you and your service provider will need to keep collaborating with each other. Wish list Your accounting practice will then need to run a procurement process, and starting that off requires you to set out a 'wish list of what you are looking for from your provider. This could include: physical and IT security accreditations; values and cognisance of the law relating to employment/privacy IT security. There are also ethical questions too, as a profession, accountants should be beyond reproach- your outsourcer should mirror that.

2. Outsourcing vs offshoring It sounds counter-intuitive that offshoring (the setting of someone to work on your firm's behalf, full- time) is a slightly easier change process to manage than outsourcing (where multiple people could work for you as required) Basically, if you have someone new to work for you, they are trained and utilised- which would effectively be the case with an offshored member of staff. But if the project presented is AdvanceTrack is supporting us with outsourcing, then more structure is needed in place in the latter, it's vital to remember that outsourced provision is still human. Good signs We've discussed the traits of practices that work well with us before (click here to read more). But it's worth pointing out that any kind of change project requires senior support-leadership must be upfront and clear about what the project is looking to achieve, why and what change it is likely to involve. Of course, involving those most affected by the change early on is a great way to achieve buy-in. What's missing? Outsourcing and offshoring projects, like all other projects, sometimes fail. We have seen some not work out. Open communication and collaboration, as mentioned before are crucial If those lines shut down then it will fail... you will see staff that are meant to utilise the support just not bother (we told you it wouldn't work'). And that's more likely to happen if they weren't involved enough during the earlier stages of the project. Remember that change is scary for those directly involved- particularly if it is framed around their roles changing or disappearing Secondly, if metrics aren't put in place to measure the project's success, then it can't 'stick up for itself. Improvements in work turnaround, lock-up, and revenue per head should follow the use of outsourcing or offshoring, so they're core metrics to gauge the project's success. The outsourcer's role Advance Track doesn't sit quietly on the sidelines while these projects unfold... we have world-class processes and delivery models. It is inevitable that a firm working with us will have to modify what they do in some way shape or form. This may even come down to the fundamentals of the work that your team undertakes if we pick up lots of production work thon that usually frees up your team members time to undertake evaluation and review work, or have more client communication Secondly, many outsourcers see themselves as offering 'extra bodies', where we see tech and systems as integral in making this work as smooth and efficient as possible. Good systems and processes should support you in your measuring and benchmarking too. While tax and accounting rules develop annually. the fundamentals of how accountants work has been relatively stable since software became widespread in the 1980s. But the ability to operate in the cloud, Al, outsourcing, the digitisation of compliance, and Increasing client requirements are driving accountancy forward. Are you and your people willing and ready to meet change head-on?

3. FAQ What do I tell my team about outsourcing accounting, and what it will mean for them? Any internal communications require sensitivity and timing. None more so than when going through a change project Communication around outsourcing accounting and offshoring accounting requires careful consideration. it is, after all, a change management project-and change can be disruptive. The most successful outsourcing and offshoring migration projects have all been guided by some of these key points: 1.Ensure you have a clear accounting migration strategy While it it may may seem obvious, the first communications about outsourcing to those impacted must be before rollout. However, timing is a sensitive matter. The firm's leaders must be clear in their minds that, strategically, outsourcing or offshoring is going to work for them. Too many voices' too early in the decision-making process will make it difficult to build a consensus. Check out our ultimate guide to building a successful outsourcing strategy for accountancy and tax practices. 2. Communicate any team restructuring changes clearly Jobs will be impacted by the introduction of outsourcing or offshoring, though in our experience these changes are generally for the better and it is rare that people lose jobs because of such a strategy Therefore, communicating that jobs are safe is critical in initial discussions with the wider business. 3. Select ‘champions' to support your accountancy migration project The next vital step in communication involves picking 'champions' within the within the firm to both support project management and relay information up and down the chain. Again, your choices here are important-we have seen 'naysayers' picked as champions, and it is important to have some representation of viewpoints (alongside distinct roles or responsibilities) Subsequently, it is important that the people feel genuinely involved. We strongly believe that the vast majority of outsourcing and offshoring projects enhance the working lives of people impacted by the change, it might not always be appreciated by those involved, but there is a communication hurdle to clear in terms of the focus not just being on cost-savings- roles will develop and that should create opportunities and a 'better' or more interesting working environment to be within. For example, perhaps the hours worked will be lower and more consistent.

4. Ultimately, the benefits of outsourcing and offshoring should be clear, but bear in mind that change can be disruptive to working patterns and can therefore be seen as unwelcome and resisted. Approach the communication aspect of change as clearly as appreciating and desiring the benefits.