Does your accountant outsource?
Posted on 13th July 2018 at 07:40
In recent years, increasing numbers of accountants are outsourcing clients accounts, tax returns and payrolls to contracted service providers in the UK and overseas. What does this mean for clients? And does it matter to you?
Why would an accountant outsource?
Accountants can make considerable cost-savings by outsourcing.
It’s cheaper for them to outsource than to employ in-house staff, which involves extra costs such as employer National Insurance contributions, holiday pay, sickpay, pension contributions and ongoing training costs.
And if they outsource overseas, it’s likely to be even cheaper than a service provider in the UK.
Does outsourcing affect you?
As business owners ourselves, and in this age of cloud technology and concerns over data security, we believe it’s important that you know who’s working on your accounts and ultimately who has access to your financial and personal data.
Your relationship with your accountant is built on mutual trust and a shared understanding of your business. When your accounts are outsourced, a third party becomes part of this relationship.
An unknown third party is unlikely to have the in-depth knowledge of your business that you rightly expect from your accountant.
You may also have concerns such as:
• What qualifications do they hold, if any?
• Have they signed a Non-Disclosure Agreement?
• What technology do they use? Is it secure? And does it comply with the new Making Tax Digital regulations coming into force from 2019?
• How safe is your data? Do their data processes comply with the General Data Protection Regulation coming into force 25th May 2018?
Will my accountant tell me if they outsource?
They may do, but it may be in the small print. If you’re unsure, check your accountant’s Terms and Conditions.
If the Terms and Conditions aren’t clear to you, don’t be afraid to ask your accountant if they outsource.
Does Effective Accounting outsource?
No. We don’t outsource - and we never will.
We value our relationship with our clients. We strive to get to know you, understand your business goals and provide an exceptional service tailored to you.
We are qualified accountants (fellow of ACCA and member of AAT) so you can be confident we have the right skills and knowledge to manage your accounts.
Want to know more, get in touch!
Nicola J O'Sullivan -
Founder | Xero Champion | IR35 Expert
Tagged as: Accounting Jargon, For - Contractors, For - Employers, For - Limited Companies, For - Property Owners & Landlords, For - Self-Employed, Founder's Notes
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