6 ways accountants are beating their offshore competitors

As globalisation continues to blur boundaries and connect economies, offshore services are posing an increasing challenge for UK-based accountants. This in turn is spurring onshore practices to reposition themselves, making the landscape even more competitive.

In a recent IFA member survey, 31.1% of respondents cited "wider use of offshore accountancy resources" as a challenge that could impact them, while 33.1% said "competition from other business professionals" was a threat.

We spoke with accountants to find out how they are staving off competition – both offshore and onshore – by enhancing their clients' experience, improving aspects of their business that clients value the most, and offering complimentary advice where it can add value for clients.

Here are six tips from two thriving accountants with distinct business models on how they're adapting in this fast-evolving environment.

1. Offer the personal touch

Chris Chapman manages three staff at McPhersons Walpole Harding Accountants in Brighton. Despite having a long-standing customer base, he recognises the looming threat from more affordable offshore options, which he tries to counteract by offering a bespoke service.

"We invest time in understanding our clients' personal lives, their families and future plans. This insight allows us to offer proactive advice, such as involving family members in the business, or optimising dividend distribution, to help them save money,” Chapman says.

"Good accountancy is about more than just reviewing financial documents. You need personal relationships to provide top-tier advice."

IFA member Asad Mughal set up his London-based accountancy Insight Business Services in 2017 and later opened a back office in Pakistan. He discovered the value of face-to-face interactions during the pandemic.

"Clients we acquired during COVID dried up quickly due to lack of personal contact. Now, we prioritise in-person meetings,” he says.

Mughal believes his intricate knowledge of the UK tax system and a personal connection with each client give him an edge over offshore competitors.

"Most offshore firms focus on bookkeeping services, whereas we stay informed about national budgetary and socio-economic developments, which offshore firms struggle to replicate."

2. Go the extra mile

Offering additional services is key to providing more value to clients – and to preventing them from looking elsewhere for services you can’t offer.

"It's about providing extra services, from cash flow management to management consultancy," Chapman says.

Sometimes, rather than selling in more accounting services, a quick conversation with a client – though technically outside your scope of engagement – will provide true value and cement your position as an adviser. Mughal says he's readily available to offer his clients advice.

"One of my clients was buying a car and wanted to know which would be best from a tax perspective. In 15 minutes, I helped him finalise the best option," he says.

He focuses on anticipating client needs before they do.

"I always look to see where a client can make savings in their business."

3. Offer flexible appointments

To compete with the round-the-clock availability of global services, Mughal has extended his business hours to 7pm during the week and is also available on Saturday mornings.

"Small businesses are focused on their core duties during the week so we've had to provide extra flexibility, and they've found this really helpful."

Of course, we also heard from IFA members recently that their weekends and other downtime is increasingly impacted by long hours and heavy workloads. Managing extended hours so that clients’ needs can be met while individuals are not overworked can be tricky.

In medium-sized firms it can be simple to ensure someone is available at odd hours, without that burden falling to the same person repeatedly. In smaller firms or those where clients are not shared, getting this right is often a matter of ensuring flexibility goes both ways.

An accountant who is available for 7pm client appointments one day each week might also take an afternoon off to play sport on another day of the week, for example, or the whole team might work long days for four days a week and take the fifth day off completely.

4. Cultivate a professional referral network

The network of professional contacts held by seasoned UK accountants can be a gold mine for businesses and individuals.

"I get a lot of requests for financial advisers, solicitors and professionals who can offer pension advice. We've built up trust with our clients so they trust our recommendations," Chapman says.

It’s well worth encouraging those referral networks to work in your favour as well, by ensuring those professional contacts understand the services you offer and how you can help their clients.

5. Look at ways to reduce your fees

In the face of stiff competition, accountants must balance pricing with client retention.

Chapman plans to harness the power of technology to automate processes where possible, which will help to reduce costs – with savings that can be passed on.

"Ultimately AI will affect everything we do,” he says, explaining that his firm will look to invest in an automated platform that can provide fast answers to simple questions, “because other bigger firms will be doing that already".

6. Consider partial offshoring

While Chapman says he may be open to offshoring basic tasks in the future, Mughal has already taken this step by establishing an office in Pakistan.

"I see many accounting practices, including my own, with back-end staff in Malaysia, India, Pakistan or the Philippines and a senior, more experienced individual in the UK who reviews the work and looks after the clients. This has helped us to reduce our cost and increase profitability," he says.

Despite this, Mughal is mindful of this impact on emerging local talent and is exploring apprenticeships and trainee programs to support the development of new UK accountants.

"We will not generate new accountants in the UK if we don't hire inexperienced staff. We have a duty to provide our youth with knowledge and experience."