With outsourcing a common practice among accounting firms of all shapes and sizes, more and more companies are reaping the rewards such services offer them.
From cost reductions and time saving, to flexibility, and risk management, while the opportunities for increasing your competitiveness as a CPA firm are in abundance, as are the opportunities to get it wrong, and not get the most out of outsourced services.
If you plan to outsource bookkeeping services to India, here are 8 mistakes you absolutely don’t want to make, and which the avoidance of, will absolutely enhance your experience:
- Failing to set expectations and goals that are clear
Outsourcing failures are often associated with a distinct lack of clarity when it comes to defining requirements and scope. Always make your expectations clear from the get-go, including such things as timelines, performance metrics, and deliverables, are made clear for a successful relationship.
- Neglecting to check their technical expertise
Knowing that the provider you’ve chosen has the necessary expertise to meet all of your accounting needs, can be a critical component of an effective and lasting relationship. Without the skills and knowledge required, you risk the loyalty of your clients and your reputation.
- Focusing on cost alone
Outsourcing absolutely can help you save money, but focusing all of your efforts on finding the lowest priced service provider, could mean you jeopardize your firms’ reputation, and aren’t able to offer your clients the services they value. Try to look beyond pricing to the level of experience and reliability, and if you look hard enough, you should be able to find a great provider at a great price.
- Not establishing clear channels of communication
No outsourcing relationship can ever be fruitful without clear and consistent communication, so you must ensure that regular meetings and check-ins are scheduled, to avoid miscommunication, or simply a lack of it.
- Failing to consider the long term implications
Most CPA firms don’t outsource on a temporary basis, especially not when they start reaping the inevitable rewards, so it’s essential to give due consideration to the possible implications of a long-term relationship, such as increases in cost, or possible changes to the providers company.
- Not putting processes in place for checking and reviewing the relationship
While an outsourcing partner may initially meet all of your needs, there is always the possibility that this will change during the relationship. But with regular monitoring and reviewing, you can help ensure that your needs continue to be met by your provider, for many years to come.
- Not considering differences in time zone
While a difference in time zones can be beneficial in an outsourcing relationship, there are always occasions when it may prove problematic if not taken fully into account.
- Selecting the wrong partner
Selecting tax outsourcing services that aren’t the right fit for your company or your company’s needs, can easily lead to work of a subpar quality, deadlines that are missed, and on occasion, legal complications. Always take the time to thoroughly investigate an outsourced partner before entering into any formal agreements with them, which can help avoid disappointment or problems in the future.
These 8 mistakes are easy to avoid when outsourcing, but only when you take the time to select your outsourced partner wisely, and by working hard to maintain a fruitful and trustworthy relationship between both parties, at all times.