Outsourced Accounting Challenges and How to Overcome them
Outsourcing is very beneficial to companies for its efficiency and cost-effectiveness. However there are also a few challenges when it comes to outsourced accounting. In this blog, we prepared solutions to the hurdles that hinders you from enjoying the benefits of outsourcing.
Accounting Outsourcing Issues
Breaking the Language Barrier
Language barrier is really more of an illusion rather than a real challenge. The Philippines is a home to professionals fluent in the English which comes as a strong asset as a top outsourcing destination. Their strong command of the English language gives them a great advantage in dealing with foreign clients because they can communicate and deliver messages across without reservations.
Crossing the Cultural Divide
Cultural divide, when ignored, can cause miscommunication, or even personal conflicts.
In order to bridge the gap, you can provide lectures that give your employees a background about your outsourcing destination and your outsourcing destination a background about your country. Additionally, you can do cultural immersion by sending one of your employees to your outsourcing destination and vice-versa.
Working with Time Zones
Working as a team on different time zones is problematic, if you do not have proper time management. However, this is a challenge that can be turned into an advantage. Synchronization and clear-cut communication is the key. Critical information should be passed on via phone calls or live chats, while messages can be sent through e-mail. With proper time management, you can have what you need before the start of the business day in your time zone.
Outsourcing within your Budget
While outsourcing your accounting functions come in handy, this also comes with a price. Outsourced accounting pricing will depend on your budget, and in your requirement.
You may opt to outsource an accountant per hour or full-time, or only during the busiest seasons of your team. Your outsourcing engagement can either stretch or be terminated immediately according to your fund allotted for the offshoring services.
Select the Right Accounting Outsourcing Partner
Choosing the right partner is the most important decision that can make or break your outsourcing experience. You’ll waste time and resources solving the challenges above if you don’t have the right outsourcing partner. Luckily, there are some things that you can look for in finding the right partner.
Expertise ensures the quality of work being done. Some companies have quality assurance teams to guarantee that things are done with the highest standards. Consistency enables the firm to continue operations even when the employee is on leave due to sickness or any other reason. Good partners have back-up employees, ready to take on the job at any point in the business process. Finally, there is excellence. This separates the good from the great.
Excellence is your partner’s ability to handle complex tasks. There are a handful of outsourcing firms that have teams able to do specialized tasks and deliver with speed and precision.
With the proper execution and leadership, outsourcing certain functions can take your company into greater heights. Though outsourced accounting challenges may still arise, coordination with your partner firm can help in solving the problem.
Looking for the right finance and accounting outsourcing partner? Contact us and see what the right outsourcing partner can do for you. You may also download our free guide Outsourcing: How to Make it Work to know how we can contribute to the achievement of your business goals.
This post was first published 31 August 2015 and edited 15 September 2020.