Get A Quote5 Questions You Must Ask Your Outsourced Accounting Provider in 2022
The pandemic has finally accelerated the adoption of Outsourced Accounting Services. Despite the growing popularity of remote accounting firms, pre-pandemic, it was COVID-19 that triggered the switch. Not so surprisingly, it was also the 2008 crisis that first resulted in the aggressive growth of the outsourcing industry.
Benefits of Outsourced Accounting Services:
Outsourcing the accounting services simplifies the access to expert accounting resources across the world at an affordable price. By augmenting the current accounting capabilities with external support outsourcing can help businesses get their work done in less time with fewer resources. And this frees up the resources – time and money which can be directed towards more strategic purposes.
In a nutshell, outsourced accounting improves accuracy & productivity while cutting down the time and money spent on back office functions like accounting. But more importantly, accounting helps a small and medium business gain edge over its competition by giving it access to the best accounting expertise which wouldn’t be possible otherwise.
However, all the benefits above are only possible when a business joins forces with the right remote accounting firm that can perfectly cater to their accounting requirements.
So how do you find them?
How to choose the right Outsourced Accounting Service Provider?
Even the best remote accounting firm in the market may not be a right fit for your business if their services and expertise do not match your requirements. Every accounting firm has a specific area of expertise, tech stack and experience that caters to a specific business. To know whether a remote accounting firm can be an ideal outsourced accounting services provider you need to dig into the specifics of the business. To help, we have prepared a list of 5 questions that can help you choose the right accounting service provider for your business.
5 Questions You Must Ask Your Outsourced Accounting Provider in 2022
What is your core expertise and experience in the outsourced accounting industry?
A remote accounting firm with expertise and track record in all accounting functions is rare. Even among the rare ones, it can be difficult to find accounting firms with experience in your line of business/industry which is usually the most ideal case. To verify their expertise and experience ask for the testimonials of clients in a similar industry. Look for the qualifications of the founder (important) certifications of the resources and check out their blog (underrated).
Can you be flexible enough to assist with my unique accounting needs?
Accounting needs can be versatile. Especially small and medium businesses will need skilled assistance across different branches of accounting. So it is important to ensure your accounting firm is in a position for all the help you will need in the future – Effective Accountancy.
What technology stack is employed for accounting services?
We are in a digital age where accounting technology plays a key role in the efficiency and performance of accounting and bookkeeping functions. Access to cutting-edge accounting software and tools has always given the large players an edge over their competition.
By simplifying the access to this advanced technology stack, outsourced accounting services can help small and medium businesses accrue all the benefits. So it is important to ensure that the outsourced accounting provider is equipped with the right set of modern accounting tools and software that can help you improve your accounting performance. Cloud accounting tools, software, Accounts Payable and receivable automation tools, and tax suites, are mainstays in the technology stack of today’s remote accounting firm.
What is your availability and turnaround time?
Timelines are key when it comes to outsourcing. Now that you have ensured that the outsourced accounting firm is well equipped to serve your needs, confirm the availability and turnaround time. Have a clear list of TAT expectations (even better if they are documented) and communicate them to the firm beforehand. Ensure you include both standard and non-standard accounting requirements that need to be completed – along with their turnaround time.
What are the security measures for employees at our facility?
Accounting is a function that can be highly benefitted from outsourcing. However, it is also the most vulnerable one owing to the sensitiveness of the information that it entails. Since the data in remote accounting resides in remote data servers, the online security standards of the firm need to be evaluated beforehand.
So probe into both physical and online security practices employed by the firm – physical security measures, password policy, encryption methods employed, cloud security and management, data breach policies & document management.
An expert and experienced remote accounting firm will adequately answer all the above questions. If you are unable to find a remote accounting firm that satisfies all your requirements in your budget, our accountants at Effective Accountancy can help.
