Accounting is a critical area for any business.
Dealing with large amounts of financial data can get overwhelming pretty fast, after all.
Companies that don’t want to add on in-house staff often consider outsourcing accounting functions.
This way, they save on operating costs, scale faster, access niche accounting talent, and ensure 24/7 operations (due to time zone differences).
However, it’s not without its challenges. For instance, you might want to avoid these common pitfalls when partnering with an outsourcing firm.
Vague Outsourcing Goals
One of the most common pitfalls for many business owners is not having a clear idea of why they’re outsourcing.
Are you trying to save on costs? Or maybe your company needs a specific skill that’s scarce within your country?
Before enlisting the help of any staffing agency—like Remote Staff—identify which tasks you plan to outsource.
You wouldn’t want your outsourced accountant or bookkeeper to linger if you just need them for a project.
So, always have a clear idea of what you want to accomplish when outsourcing.
Cutting Corners
Some business owners aim to reduce their operational costs.
As a result, many of them opt for the cheapest outsourcing services.
You might end up hiring an independent contractor who is marketing their services for, say, a dollar per hour.
This isn’t to say that their performance won’t be good, but you do have to be wary.
They might not perform well and your financial reports might suffer as a result.
So, don’t pinch pennies when it comes to hiring.
There’s a reason why skilled professionals charge the way they do – they know they can deliver the results you need.
If you’re not sure where to start looking, you can hire through referrals or via established staffing firms.
Neglecting Your Due Diligence
Another one of the most common outsourcing mistakes is failing to do your homework.
It’s a recipe for a disaster because you won’t have any idea of what to expect.
You might end up hiring the wrong remote worker or your company’s financial data might fall into the wrong hands.
Thus, always look into the background of any person you’re about to hire.
Or to save yourself the trouble, you can partner up with reliable staffing firms like Remote Staff, who can do all the vetting for you.
Outsourcing Complex Tasks
As a business owner, you might think that outsourcing the most complex and challenging tasks is a smart move.
However, that’s not always the case.
Some complex accounting tasks are best kept in-house because they deal with sensitive financial information.
However, if your company needs an extremely niche skill set and can’t find talent within your geographic location, then you can indeed outsource.
Falling for Upselling When You Don’t Need It
Another one of the most common pitfalls is paying more for outsourced accounting services than you need to.
Some firms will try to upsell their services, and you might be swayed by their words, despite not needing these in the first place.
This is why you should have a clear idea of what your business needs.
It will help you stand your ground and say no to unnecessary add-ons.
Failing to Set Expectations
When outsourcing accounting functions (or any role for that matter), always establish your expectations early on.
This way, the other party understands what you expect from them.
Should you go through a service provider, communicate these to them as well.
Not Providing Feedback
One of the last pitfalls to avoid is failing to give feedback.
Let your outsourcing partner know how they’re doing.
If you need to further scale your outsourced team or correct any mishaps, then providing constructive feedback is the way to go.
When you don’t speak up, your outsourced accountant or bookkeeper will keep going—regardless of whether you like their performance or not.
Outsourcing Accounting Services
Outsourcing is a huge step for any business.
Thus, you need to go into it with both eyes open.
Done correctly and with the right staffing services, it should connect you to highly qualified people who can bring your business to new heights.
If you don’t know where to start, let us help you out. Remote Staff has been around for 16 years (and counting), so you can bet that we know what we’re doing.
Have an accounting role (or other positions) you need to fill ASAP? Schedule a callback today!
Herschel Lili has a collective four years of professional writing experience. She enjoys reading anything under the sun, but in recent years, she has turned her attention to books that leave her feeling profound. At present, she looks forward to learning everything she can about remote working and sharing the knowledge through succinct write-ups.
