For small businesses, figuring out how to outsource accounting services can be confusing and intimidating. You could also lack a clear idea about the amount of work your core team will have to do.
Unlike the popular misconception, “outsource” does not merely imply taking a job from someone and handing it over to a less experienced person overseas for a lesser charge. In reality, it means taking an area of business you are weak in & letting a professional who’s not your in-house staff handle it for you.
In fact, outsourcing is something we all do at some point or another. Whenever we get our car fixed or house disinfected, we are in fact entrusting another professional who is an expert at his job to do these tasks for us. This allows the job to get done well, while also freeing up time to focus on your own work/business.
When it comes to outsourcing accounting, you should consider that option if you have too much on your plate. Accounting is a crucial part of your business, and it can ruin everything if done improperly. Thus, you should avoid taking risks of any sort, especially since it affects your taxes during tax season.
Prepare Your Business for Outsourcing
Before you proceed to outsource accounting, you must think deeply about your business goals first. Ascertain how outsourcing accounting will help you achieve them.
Go through your workflow and map out the entire process of working with clients the best you can. Concentrate on the most vital areas first, and branch out gradually as your outsourcing process and onshore team’s competency improve.
Do not forget to document this process using workflow mapping or screen recording software. After that, put together a training video or detailed instructions for every step.
Have a meeting with your team members and decide the tasks in their workflow which are the most time consuming, and they are willing to get delegated. Remember that if you select the right accounting service, the team can help you map the process.
Today, modern technology and software like Zoom, Loom, and Snagit can help you produce video content that can be process-mapped by your offshore team.
Know About Different Outsourcing Options
After you outsource accounting to an accounting company, you need to know what options you have about how close you stay to your numbers. Certain services simply take over everything completely, while others like hands-on CPAs will simply provide specialization, oversight, and a little additional aid when required.
In the case of the latter, you can still do much of the manual entry and manage your books as well. You can also choose online accounting softwares to automate your accounting. Another option is to hire an accounting company like NumberSquad to take care of all your accounting and bookkeeping needs.
Find the Right Outsourcing Team
Like all other companies, not every outsourcing team is equal. All of them share significant similarities and differences and inevitable pros and cons of their own.
Remember that an outsourcing team, though well-reputed on its own, may not be up to fulfilling your specific requirements. It will be best if you take time to research these companies and outsource accounting to one which provides services suited to your needs.
Ideally, you should go for an outsourcing company that specializes in your field and is locally equipped with offshore and onshore support staff.
Apart from the level of service you require, this also plays a vital role in compliance and legalities. If you find this process overwhelming, do not hesitate to take the advice of someone experienced in this regard before proceeding as it might trouble you when you have to pay your taxes.
Manage and Train Your Outsourced Team
After you successfully outsource accounting, you must ensure that you train and manage your outsourced team successfully. First of all, assign the role of a “champion” in your business. Apart from serving as a leader in your outsourced team, this person will also have to oversee all aspects of the same.
Proceed to develop a well-structured and organized training program with your outsourcing company.
You should lean on your company’s experience and ensure that the new team members are familiar with everything regarding your firm. Here, we are speaking about your firm’s technicalities and functioning and its intrinsic culture and values.
Your team needs to respect these aspects and co-operate in making it a memorable working experience for both of you. In order to facilitate this process, many people choose to invest in traveling. Some bring the team members to see them as well.
Assign Appropriate Tasks to Your Outsourced Team
Once you’ve completed the training, you must check in regularly with your team with the help of online communication tools. Have your “champion” as a point of contact for communication regarding assignments, demands, or other projects.
Eventually, the process will become easier for you. You will not have to provide as much training or supervision after that.
You must make sure that your outsourcing partner also provides training with the help of webinars, industry events, and in-person support. It will help enhance your growth and allow you to connect to more clients for peer learning.
To conclude, you should figure out how to outsource accounting with confidence if you are facing accounting or bookkeeping issues. It is a far better option than ignoring your accounts and letting your business suffer as a result.
With the help of a solid financial plan, every profitable business can survive tough times. You can take a step in the right direction and come up with such a project by enlisting a professional’s services when the time is right.