What should I check before outsourcing my bookkeeping tasks abroad?
Make sure to carefully vet the firm you outsource your bookkeeping to.
Your relationship with the IRS depends on how well your books are kept. And also your reputation with the clients depends on their work.
Quality over expedience every single minute of every single day.
It’s also very relevant to the area that you work in. If you’re in the middle of blue collar America, and you think your clients are going to be OK with you outsourcing ‘American’ jobs, I’ve got a bridge to sell you.
It can be a good strategy, I have had clients that used it successfully and my firm employed outsourcing successfully before it was sold. It’s a nice benefit to know that someone somewhere is doing your work at a more reasonable rate while you sleep at night. Waking up with one less task to do is pretty sweet.
If You’re interested in learning about the firm that I used for outsourcing, just let me know. I have no affiliation with them but they do good work. You need to be willing to work on and build the relationship with the people doing the outsourcing in order to get the results you seek, it’s not as easy as ‘plug and play’ like many would like to suggest it is. It takes time and commitment, like any meaningful strategy.
Consider whether you really need to do your accounting in-house or whether it could be outsourced without having any negative effects on the business, your employees and, most importantly, your customers.
Check whether the outsourcing company has got the appropriate skills to do the job.
They should have a pool of qualifications in their company such as ICB (Institute of Certified Bookkeepers), ACCA (Association of Chartered Certified Accountants) CIMA (Chartered Institute of Management Accountants), and AAT (Association of Accounting Technicians). They should also be flexible enough to use various accounting software such as advance spreadsheets, Sage, MYOB, IRIS, QuickBooks and Xero.
Consider how well respected they are in the market and how their current customers grade them. Ask for testimonials.
Check the conditions if you want to end the contract of outsourcing and, how flexible is the service level agreement?
Kennith Yost is a Virtual Bookkeeper at Efficiency Partners, known for helping businesses implement streamlined processes and accurate financial management systems that create financial clarity for business owners.