Accountancy outsourcing: the trick up your sleeve
Studies found that 49% of accountancy firms are struggling to meet growth targets.
These findings come as no surprise – many firms now face difficulties attracting, recruiting and retaining the right talent alongside dealing with an enormous amount of repetitive, admin intensive tasks that face ever-narrowing profit margins.
Chances are, you’re experiencing at least one of these issues, to some degree, but what can be done?
The cost of doing nothing
These interconnected challenges can impact commercial performance massively if firms don’t take action.
Top-line growth in the form of adding more clients can be hindered when the resource isn’t available to support client expansion without sacrificing service levels.
Bottom-line growth, achieved by increasing productivity, is made harder when employees are already working at full capacity, albeit spending much of their time on low-value, admin-intensive tasks.
Service growth, which is essential for firms keen to obtain a competitive edge, takes a back seat when resources are low and client deadlines are looming.
Use data as a guide
The key to tackling these challenges and optimising processes is data.
Analysing data trends within your firm enables you to identify the root cause of underperformance and use that insight to develop smart interventions.
Insights from data analyses also help nurture a resource pipeline capable of meeting future needs and answer questions such as: can the trainees of today accommodate the projected demand of tomorrow?
However, it’s incredibly challenging to foster efficient processes and drive continuous improvement – even with data insights – when firms are operating with significant resource gaps.
Level up with outsourcing
By outsourcing technology and advisory services to specialist providers, firms can free up their staff from the monotony of repetitive, time-consuming & volume heavy tasks.
In doing so, they empower employees to focus on higher-value services, which are typically the elements of their role that challenge and engage them in all the right ways, helping ensure:
- Better staff retention
- Happier team
- Enhanced service to clients, adding extra value
- Ability to be proactive rather than reactive to client needs
- Healthier bottom lines
- Lower overheads
- Improved flexibility
By embracing an outsourced model, you can inject expertise and specific skillsets into your service offering, either as a short-term solution to plug an immediate gap or as part of a longer-term strategic approach.
Think volume and value
With flexible outsourced solutions, combining the right people (with the right skills), the right processes and the right technology, firms can respond effectively to change while supporting top-line growth.
The time savings that result from outsourcing tasks, including year-end accounts preparation, iXBRL tagging, payroll processing, personal tax return preparation, bookkeeping and Making Tax Digital (MTD), can be used to deliver higher-value services to client or will enable firm to take on more clients.
This immediate injection of resources that outsourcing provides liberates firms to focus on nurturing client relationships, developing new services and enhancing existing ones.
Plan now for future success
A flexible outsourcing model is a low-risk way firms can rise to the challenges of today’s accountancy landscape.
With outsourcing, accountants can create an innovative, future-proof firm that attracts and retains talent while also delivering value-added services for clients.
To learn more, watch our on-demand webinar – Resourcing: is there more than one way to scale up your firm – click here.