Accurate accounting is vital for businesses and, put simply, the idea of outsourcing this business process worries many – and rightfully so. If you’re not careful with who you give control of your company’s finances to, the potential for a disaster is high.
There are many myths surrounding outsourcing, but how many are true? Well, that depends on who you choose to handle the formation of your global dream team. Join us as we explore the most common myths in accounting where outsourcing is concerned so you can better decide if it could help take your business to the next level.
Common Outsourcing Myths
- Control: Outsourcing means relinquishing control over my company’s finances
- Cost-cutting: Outsourcing is for businesses looking to cut business costs
- Too small: Outsourcing is only for enterprises
- Security: Outsourcing means client data is at risk of a breach
- Quality control: Outsourcing would produce a drop in quality for our accounting
- Retention: Outsourcing means I’ll have to lay off staff
- Limiting: Outsourcing is only good for virtual assistance
1. Outsourcing means relinquishing control over my company’s finances
This is an understandable concern. Well, it would be if outsourcing did indeed mean handing over the responsibility of your company’s finances to somebody else. Fortunately, that’s not the case.
Firstly, it’s down to you as the employer to decide what level of access you want to provide and how much control you want to relinquish. Here at Cloudstaff we tailor outsourcing to the needs of those we partner with – it’s not a one-size-fits-all offering.
Companies decide what tasks and responsibilities they set for offshore team members, as is the case with onshore staff, so there’s no need to fret.
In fact, outsourcing doesn’t result in a loss of control; outsourcing frees up time as administrative tasks are taken care of for you.
2. Outsourcing is for businesses looking to cut costs
While outsourcing can indeed be a much more financially prudent option for accountancy businesses, it’s not only for those who need to lower their operational spend.
Whether you’re looking to free up time for existing staff or need a helping hand as tax season comes to a frantic close, the peace of mind of having capable and qualified remote assistance is a major benefit. Utilizing offshore staff expands the capacity of your team, which not only increases the amount of work that gets done but allows your company to further improve your service levels.
Not to mention the domestic skills shortage that we’re currently seeing. There are more jobs than prospective local talent available and outsourcing is a remedy for that – the Philippines produces around 5,000 Certified Public Accounts per year, for example – as it helps to support your business’ growth. It’s not solely for companies looking to reduce their spend.
3. Outsourcing is only for enterprises
This myth can easily be busted. Outsourcing is more efficient on cost, time and resources than traditional recruitment so it’s ideal for businesses of all sizes.
In fact, some may argue it’s actually the best path forward for smaller, newer businesses. It can be financially beneficial in terms of employee salaries, recruitment fees, equipment and workspace costs, finding trained and experienced staff, and much more. The benefits of outsourcing are the same whether you run a bootstrapped startup, global corporation or something in between.
We understand the unique challenges that small and medium sized businesses face and have seen first-hand how outsourcing can fulfill their needs, helping them to improve workforce efficiency and achieve growth.
4. Outsourcing means client data is at risk of a breach
Privacy laws are tightening, and financial data is incredibly sensitive. It’s important to keep such information under wraps and accurate at all times, and outsourcing does not have to be a saboteur of that mission.
Outsourcing done well will not result in any data breaches. While offshore teams require access to your systems and information over the internet, there are protocols and procedures that can be put in place to ensure security and integrity.
For instance, Cloudstaff Vault is an enterprise-grade security mechanism designed to keep highly sensitive information secure. The isolated facility ensures offshore professionals can only access what’s necessary, with zero opportunity for any data breaches to occur.
Having achieved and maintained ISO 27001 certification, as well as being GDPR compliant, Cloudstaff partners and clients can be assured that information security is top priority. The standard requires a systematic examination of any risks, threats and vulnerabilities. From there, management processes are implemented to ensure security levels are satisfactory.
Remote work of all kinds does indeed present new risks, but these risks are avoidable with the right procedures and best practice.
5. Outsourcing would produce a drop in quality for our accounting
This myth is common but not true. Our database is full to the brim with experienced professionals who have gone through all of the necessary training to assist accounting and bookkeeping companies.
A quality outsourcing firm, such as Cloudstaff, will ensure that any offshore professional that’s placed in your company has the appropriate knowledge and credentials to perform their role expertly. Our Cloudstaff Academy program provides fasttrack training for tax and accountancy for Australia and the United States, ensuring our database is only full of trained workers.
What’s better is that moving accounting roles to the Philippines saves your business up to 70% on traditional staffing roles. While you’re saving on cost, you’re not inherently losing out on quality. The Philippines produces around 15,000 accountancy degree graduates per year, of which 5,000 will pass the CPA board exam, and thousands upon thousands of the qualified professionals in our database also have experience working in either Australia, the United Kingdom, or the United States.
From bookkeeping to tax preparation, Xero to QuickBooks, our Cloudstaffers have the capabilities and experience necessary to help businesses thrive.
6. Outsourcing means I’ll have to lay off staff
It’s true that outsourcing is often more cost and time efficient, but that doesn’t mean there’s no room for your existing onshore team.
Retention is an issue for almost every business and outsourcing actually helps here. Hiring remote, offshore professionals supports and frees up your onshore team from the smaller, repetitive tasks so they can focus on high-value activities.
7. Outsourcing is only good for virtual assistance
As mentioned when dispelling the myth above, offshore professionals can be well-versed in many areas of accounting and perfectly execute a variety of business functions for you.
Whether you need to bolster your team at the end of tax season or a helping hand with management reporting, you have more than Virtual Assistance at your disposal when outsourcing.
Key business elements such as bookkeeping (AR/AP), accountants, tax and compliance, auditing, and financial planning can all be taken care of with highly skilled, remote staff.
Cloudstaff, we work for you
Interested in learning more about outsourcing? Ready to find out how exactly it can elevate your business? Talk to one of our specialists today.