Using an outsourced solution to deliver transformation

 Change management, or ‘transformation’ is high on the list of priorities for most UK accountants. Investment in new technologies such as cloud accounting software and the automation of recurring tasks is increasing. Developments in artificial intelligence (AI) are helping accountants look critically at the way they communicate with clients while ensuring they remain available to provide personal, expert advice when needed. 

In summary, modern technologies now support different models of service delivery and this includes outsourcing work to an offshore provider. 

In this article, we discuss how UK accountants are outsourcing services to deliver their transformation plans.

Transforming the way services are provided

While accountants have invested heavily in modern technologies, many fail to review the way services are provided to secure the best possible outcomes for profitability and growth. The automation of tasks and embedding of cloud-based software provide wide scope for transforming the way services are delivered. The ‘digitisation’ of accounting records means there is no need for accountants to work from a traditional office space – information can be accessed from anywhere using an internet connection. 

In terms of the services an accountant may outsource, the work does not need to be confined to transactional functions such as bookkeeping or payroll. An outsourced accountant can support the onboarding of clients and provide continuous feedback on the services a client might need, such as tax or specialist advice. The outsourced accountant can help look forward and meet the real-time reporting needs of clients.

The outsourcing of compliance work helps accountants manage short term pressures such as peaks in workload or to eliminate backlogs of work. This can be at the individual accountant level, when capacity is most stretched at key points in the accounting cycle, or to help drive growth in new client numbers and services. Outsourcing work helps accountants provide professional support and the expert advice clients need without increasing the permanent establishment of the Practice.

Transforming client relationships

Many accountants are looking to scale their businesses quickly through growth in new client numbers. The onboarding of new clients can be resource intensive with the additional pressure to make the best possible first impression. Outsourcing can manage many of the administrative tasks involved in taking on new clients, such as registering information with HMRC and Companies House and submitting required documentation.

Outsourcing such work creates the capacity for in-house accountants to better understand the needs of new clients. Expensive mistakes can be avoided where a client is unsuitable or where expectations about the services to be delivered for the agreed fee vary. When onboarded successfully, automating communications with customers as work is delivered improves turnaround times.

The outsourced accountant can manage the flow of communication with a client for the work they are responsible for, enabling the UK accountant to focus on adding value to the client relationship.

Many potential clients now contact accountants via websites or using app technology. Some accountants employ customer service professionals to deal with such contact and other non-accountancy related tasks. Every interaction with a client can be measured and evaluated, and new ways of providing information to clients can be explored.

Some accountants are successfully using ChatGPT to respond to questions from clients. Others are using automated messaging to progress work. The best outsourced suppliers adapt to the changing demands of UK accountants and their clients, supporting continuous improvement in services. To evidence improvement, real-time data can be used about every task the outsourced supplier completes and compared to the equivalent in-house performance. 

Advances in cloud-based accounting software and the increase in entrants to the UK accounting market offering Software as a Service (SaaS) solutions mean small business owners are comfortable maintaining their own accounting records, requiring the support of an accountant only at key points in the accounting period.

This can lead to significant peaks of work where a high number of clients have the same year-end or need personal tax services in the lead up to HMRC’s deadlines. While accountants seek to increase the number of such clients through competitive pricing, they often overlook opportunities to provide professional insight and data. By outsourcing tasks such as the preparation of VAT returns, personal tax returns or year-end accounts preparation, accountants can create the additional capacity for more direct contact which adds value to the client relationship. 

Outsourcing services to add value

Throughout the COVID-19 pandemic, accountants went the extra mile to help clients access government support, offering help and advice without seeking any fee for such work. Understandably, profits suffered but accountants secured better client loyalty and relationships. 

As economic conditions become more normal, accountants are looking at ways to use this goodwill to engage customers in their growth plans. By encouraging clients to accept different, more efficient ways of delivering services, accountants will secure the maximum benefit from any transformation work. Most clients are comfortable with an outsourced supplier preparing their accounts or tax returns where the arrangements are complemented by improved communications and better outcomes in terms of quality and delivery. 

Using an outsourced supplier to manage recurring communications with clients ensures a consistent quality and timeliness of contact to improve the overall customer experience. Measuring such outcomes is essential to understanding the impact of transformation on each customer.

Outsourcing work to enhance organisational culture

Outsourcing work succeeds where management is clear on how the arrangements will support staff and nurture the desired culture. Accountants most likely to implement outsourcing successfully are comfortable with innovation and delivering change. Being open about the aims and benefits of outsourcing work will address any concerns individual accountants have about their role being diminished or removed completely. Outsourced partners offer a wide range of flexible options, from short-term hourly resources to full-time equivalent accountants who work as part of an on-shore team and who report directly to practice managers. Integrating the outsourced accountants into training, team meetings and other staff updates helps build relationships and contributes to the overall culture of a practice.

While larger practices have used outsourcing successfully for many years, smaller practices (and especially sole practitioners) often perceive barriers to engaging an outsourced partner. However, the investment in new technologies means smaller practices can introduce outsourced partners into their day-to-day operations with the minimum of disruption. This allows practices to increase their capacity and range of services to clients without taking on the additional risk and costs of direct employment. Investing time with the individuals provided by the outsourced partner will introduce accountants to new ways of working, a different mindset for delivery and more diverse teams.

How Initor Global can help deliver transformation 

Initor Global has been providing offshore services to accountants since 2006. Its customers include sole proprietors, as well as small and medium sized UK accountancy practices. Its outsourced tax, accounting and payroll services are suitable for all client engagements – from sole traders and micro businesses to SMEs and large companies. Initor Global offers services paid for by the hour, half-time equivalent, or a full-time equivalent employee basis. 

Initor Global services include:

• Digital bookkeeping 
• Year-end accounts
• Company tax 
• Payroll 
• Personal tax
• VAT 
• Secretarial services

To arrange an informal discussion and a free, no obligation trial, please contact Initor Global:

E: hello@initor-global.co.uk 

W: www.initor-global.co.uk

T: 0203 519 2121

Robert Grant is Head of Customer Experience at Initor Global UK.