Darshak Shah
Darshak is Evource Co-Founder and an Australian CPA, who has experience of working in over 8 different industries including with employers like NAB & Cancer Council. He has a great eye for process streamlining, improvement, change management, and transitions.
Just in case you have heard the good news: You no longer have to fear Accounting outsourcing! Once legitimate concerns have been addressed by the advances of globalisation, ethical business practices, and technology. This is great news for businesses who understand the advantage of collaboration. It means you have a cost-effective, flexible option to utilise the skills of others to support your business.
Here are 7 outdated fears of Accounting outsourcing:
1. Outsourced staff won’t have the necessary skills or experience
Outsourcing provides you an opportunity to tap into a scalable base of skilled resources with global pressure to meet high educational standards, both local and overseas staff include CAs, CPAs, MBAs, CFAs, Engineers, IT experts, and other intelligent and globally recognised qualifications.
With educational facilities offering courses online and many individuals electing to travel and study overseas, it is increasingly common to find Australian qualified and experienced staff who are working overseas.
2. Concerns with Privacy and Data Security
Privacy and data security is something that quality outsourcing firms take very seriously. The companies are required to sign non-disclosure agreements, just as any worker would be expected to sign in-house. Any offshore branches are secured with 24hr CCTV monitoring on their premises, and their IT includes up to date firewalls and internet security software.
Since global communication has become such a fundamental aspect of so many businesses, there are numerous secure programs that have been developed for remote workers. RDP, VPN, and Citrix are examples of such tools, where you can restrict access to information as required.
Technological advances and security protocols help ensure that your data is as secure as it can be.
3. Additional Time Investment to work with an outsourced department
While there will be some time involved in initially setting up your business to work with outsourced backend processes, this is really no different to investing time in establishing a new employee at your own office. The act of setting up the processes will also force your business to streamline, which will save your time in the future.
In fact, Accounting outsourcing will actually end up saving you time as you no longer have to worry about recruiting, hiring and training new staff everytime your business grows or a staff member leaves. Once you’re set up with the outsourcing firm they will take care of staffing needs for their office, including training and recruitment and retention.
4. Unethical business practices
A legitimate concern of outsourcing has been whether the overseas staff is working in unethical conditions, for disproportionate pay, in adverse conditions, or under unethical requirements. The advancement of global ethics and the pressure for businesses to operate on a fair basis have helped to minimise this risk. Since living costs can vary overseas the raw dollar cost of engaging overseas workers can be advantageous to your business while still ensuring they are being paid a comparably fair and reasonable wage in their economy. Security systems, CCTV cameras, and international work agreements all help to ensure that the working conditions remain ethical and above board. Do your research and talk to your outsourcing provider if you do have any concerns.
5. Losing control of your own business
It’s only natural to fear the unknown and to be concerned with losing control when you hand over important operational aspects of your firm to an external source. However, there is no need to fear.
Outsourced workers are not working to undermine your business or to take it over. They are experienced in working with different businesses owners to support them, and the assistance they provide frees you up to really run your own business.
6. Bad talk from others
Maybe you’ve known someone who had a bad experience with Accounting outsourcing. There’s no denying that there have been some negative situations and such situations tend to be talked about far more frequently than the positive. This has given outsourcing a bad rap. That’s why it’s great to know that things change. In fact nowadays the tides have turned and 76% of businesses who have outsourced have expressed positive experiences with their outsourcing partners.
The above points have addressed many of the concerns that accompany the bad talk about outsourcing. Fortunately as time goes by outsourcing firms have heard and responded to the negative experiences. Quality firms are increasing in number and becoming more accessible to those of us who have taken the plunge to give outsourcing another go and discover how well it can really work.
7. Fear of change
It’s easy to get comfortable in your own grove. Looking at a new path can be scary as you worry about the risks and challenges that it may bring.
Change is constant in this world and if we don’t proactively embrace it we will end up perishing.
Outsourcing is the solution to a business need. It’s no different to embracing the advances made by the industrial revolution, facing the future challenges of adapting to Artificial Intelligence, or adjusting to the requirements of a market concerned with environmental sustainability.
Don’t let fear be what guides your decisions. Update your knowledge, research your options, and embrace the chance to change and grow.