How To Choose The Best Outsourced Accounting Partner

Small companies usually do not have the resources to deal with their accounting and finance and are not equipped to do these capacities into activity on a day-to-day basis.

In today’s dynamic market, outsourcing is a blessing to any business because of the many benefits it offers. For example, outsourcing is highly cost-effective, reliable, and helps to make better business decisions faster.

But out of the hundreds and thousands of outsourced accounting service providers, how will you know which one would be the best to employ? You don’t need to look any further, we researched and have noted down the 4 most effective ways to shortlist your potential financial services partners.

1. Understand the skills you need to outsource 

Before you start looking for that potential outsourcing partners, you need to decide which skills you want to outsource. The strategy that is driving the outsourcing decision has to be identified and should be communicated to all of the company’s stakeholders. Examine your business first and decide on your specific business needs and the possible solution that will lead you to achieve your goals.

It is best to understand that outsourcing does not mean the ‘plug and play’ approach. By doing so, you will have a clear scope of work for your outsourcing partner.

2. Excellent Communication Skills

Communication is key in building any relationship and this is also important with your relationship with your outsourced partner. Sometimes efficient communication gets lost along the way which will result in a bigger problem. Look for a company that shows reliability and assurance. So before you sign that contract, better review that Service Level Agreement (SLA) and double-check those definite tasks and its corresponding timelines.

3. Cost-Effectiveness, Comprehensive Plans, and Resources 

In most cases, the deciding factor is usually the cost of the service. However, companies should also consider the number of resources a financial service provider has to offer in terms of workforce and technology. When you outsource, access to expert advice and advanced technology are the top items on your wishlist.

You want a company that can extend their accounting and bookkeeping expertise while having the tools to safely store your data. An example of such a tool is Xero, cloud-based accounting software that allows its users to deposit financial records and provides a dashboard with a clear financial overview.

4. Scalability

Scalability by its definition is the ability of something to adapt over time to changes. This in itself is a major factor in determining what to outsource and to whom, particularly for Small and Medium Enterprises (SMEs). They have the greatest need for scalability since they are the ones with the biggest potential for growth. The level of capacity of the outsourced partner should be critically considered so if the initial contract goes smoothly and you want to outsource more work, the partner would be able to handle it.

Finding the right outsourced partner is very important. The items listed above will surely help you on that journey in categorizing and selecting the right fit for your business.