Behind the Engagement: The Accounting Outsourcing Process
How does outsourcing engagement work? When does it start? What happens after I sign a contract? Let’s delve deeper into the accounting outsourcing process to focus on its nitty-gritty procedures.
After discussing the kinds of outsourcing in our previous blog, it’s appropriate to tackle the next steps you take before you engage in the collaboration and during the outsourcing relationship.
Before the engagement
Assessing your business’ needs
Take your company under a detailed observation to know what you need to look for in an outsourcing partner. Evaluate your internal and external capabilities and performance. Know what processes you have in place. Is there something you can work on with an outside help? How much support do you need for this particular aspect of the business?
After careful scrutiny, then you can decide which outsourcing process model gives you an edge in raising your team’s performance
Related: Outsourcing 101: What are the Different Types of Outsourcing
Consider the cost
When you outsource your functions to a third-party service provider, you must be ready to let go of a certain portion of your monthly or annual bottomline. But most importantly, assess if your business can handle the expense of the engagement. Aside from the cost-effectiveness it brings to the table, outsourcing also gives you access to proficient professionals in your field who maximize top-of-the-line software.
Find an offshoring partner that offers maximum value for your money, and provides the best experience for your operations.
Sign a contract
After choosing the right outsourcing partner for your business, signing a contract is a must. This will be the binding document that holds pertinent information about the partnership.
The contract should contain the following:
- Agreed payment - This will depend on your requirements. You can either have Full-time Employees (FTE) who have fixed dedicated hours in a week or fixed hourly rates. The more employees you dedicate in your outsourced team, the higher the cost. This factor will tell you how much you’re going to spend on the engagement.
- Respective functions - The contract should clarify which responsibility belongs to whom. Make sure all the agreed-upon services are distinctly laid down to make a sense of priority. This way, you can avoid misunderstandings pertaining to the workload.
Turnover of files
An important part of the outsourcing implementation process is the turnover of your documents to your contracted team.
To get things done, your partner should have access to your old files to assess their workload. They can start organizing these files and upload it in a shared system where both parties can see real-time updates and a convenient access when you need to see these documents.
Train your team
Manage your team by providing training and webinars. Build a comprehensive training program to make sure that your contracted staff has fully grasped the intricacies of the assigned job. This works best especially if they use a different software or work in a different approach. Some even bring their team members on-site to fast-track this process.
Once you are onboard with the partnership, consistent communication is a must. The accounting outsourcing process will sail smoothly if you do regular check-ins with your team.
Aside from assigning a key contact in your in-house and offshore staff, holding meetings once a month can help you track the progress of your project and inform them about what needs to be prioritized. Let them know what you expect so they can better prepare for anything that comes their way. In addition, communicating with them regularly can help make sense of normalcy and camaraderie among the group.
Read Next: COVID-19 Insights: Cultivating a Support System in your Organization
If you’re new with outsourcing, learning the accounting outsourcing process can help you ease your worries about the engagement. Make sure all your goals are met because after all, you outsourced your functions to get more work done than get your workload heavier than before.
In need of a reliable accounting outsourcing partner to help with your books? We’re here to help. D&V Philippines is a professional services firm managed by accountants with a proven expertise in the Australian tax compliance and standards. You can get our guide Outsourcing: How to Make it Work to know how we can make outsourcing work for your business.