Choosing An Outsourcing Partner: Top 10 Questions Every Aussie Firm Should Ask

Around 80% of Australian firms outsource at least some services. And the Australian accounting outsourcing market is expected to nearly double in revenue over the next five years. Outsourcing is clearly a game-changer for many Australian businesses, especially in the accounting sector. Many businesses, including those seeking local support from accountants Brisbane, are seeing impressive results by leveraging these services.

Why is choosing an Outsourcing Partner so popular?

Outsourcing your accounting services can:

• Save time
• Reduce costs (up to 70% in staffing costs)
• Offer access to expertise that might otherwise be hard to obtain. 

But to make the most of these services, you need to know how to choose the right outsourcing partner in Australia. And what are the questions to ask before outsourcing bookkeeping? 

So let’s look at the top 10 things to check before outsourcing accounting work.

1. What is their experience in Accounting Outsourcing?

Experience matters. When choosing an outsourcing partner, ask about their track record. Do they have experience with businesses of your size and industry? A skilled outsourced accountant with proven experience can make a significant difference in delivering accurate and efficient results.

Key Considerations

• Number of years in the industry.
• Types of accounting services offered.
• Familiarity with industry-specific accounting software and reporting tools.

Why It’s Important?

An experienced outsourcing partner will:

• Understand the unique challenges of accounting for businesses in your industry. 
• Have the expertise to handle complex tasks with minimal errors.

2. How do they ensure Data Security and Reliability?

When outsourcing, especially for offshore accounting, you must consider data security. Make sure your outsourcing provider follows robust data protection practices and maintains consistent system uptime.

Key Considerations

• What encryption methods do they use?
• Do they have reliable backup and disaster recovery systems in place?
• How do they manage sensitive financial data?

Why It’s Important?

Ensuring data security means:

• Protecting your financial information.
• Preventing data breaches and data loss.
• Maintaining uninterrupted access to critical business information.

3. What are their Turnaround Times?

Quick turnaround times make all the difference. Ask your outsourcing provider about their timelines for completing tasks like bookkeeping.

Key Considerations

• Average time to process invoices or payroll.
• How do they handle urgent requests or busy periods?

Why It’s Important?

You need to look for a partner with consistently quick turnaround times to avoid:

• Missed deadlines.
• Cash flow issues.
• Financial inaccuracies.

Consider accounts receivable outsourcing to improve cash flow, minimize overdue payments, and enhance financial stability.

4. How well do they Communicate?

Clear communication is key to any successful partnership. Find out how your outsourcing partner will stay in touch.

Key Considerations

• How often do they provide updates or reports?
• Do they use tools like accounting workflow integration software for collaboration?
• What are their communication standards for availability and response times?

Why It’s Important?

Good communication means:

• You stay in the loop with your outsourced accounting team.
• Misunderstandings are avoided. 
• Prompt issue resolution.

5. How do they integrate with existing Accounting Workflow?

You want your outsourcing provider to integrate with your existing accounting workflow. Ask how they handle integration with your software and internal processes.

Key Considerations

• What accounting and bookkeeping software do they use?
• How do they integrate with your team and systems?

Why It’s Important?

Smooth integration:

• Reduces the chance of any errors.
• Improves efficiency. 
• Creates a seamless workflow between your in-house team and your outsourcing partner.

6. What are their Team’s Qualifications?

The team qualifications of the outsourcing provider can affect the quality of service. Ask what expertise and certifications their accountants have.

Key Considerations

• Are they proficient in the latest accounting software and technology tools?
• What is the level of experience within their team?

Why It’s Important?

With experts who understand your specific accounting needs, you can ensure:

• Tasks are completed correctly and efficiently.
• Smooth integration with your existing systems and workflows.
• A high level of skill and professionalism.
• Reduced risk of mistakes.
• Up-to-date skills and knowledge of industry best practices.

7. How much will it Cost?

While cost shouldn’t be the only factor in your decision, it’s still important to know how. Make sure you ask for a clear breakdown of fees.

Key Considerations

• Are there any hidden costs?
• Do they offer flexible pricing options based on your needs?

Why It’s Important?

Knowing the full price you’re expected to pay means:

• You can then check whether their outsourced accounting solutions fit within your budget. 
• You can avoid hidden fees and surprises that could affect your cash flow.
• You can ensure better planning and forecasting.

8. Can they provide Case Studies or Client References?

Ask for case studies or client references. You’ll then get a better idea of their experience and the quality of their services.

Key Considerations

• Can they share success stories from similar businesses to yours?
• Are there testimonials available from past clients?

Why It’s Important?

References and case studies:

• Offer real-world examples of how the outsourcing provider handles the kind of services you’re after.
• Help you gauge whether they will be able to meet your needs.
• Give confidence in the provider’s expertise and reliability.
• Allow you to check whether they have experience in the areas you’re after.

9. How do they handle Transition and Onboarding?

When switching to an outsourced accounting solution, you ideally want a smooth transition. Ask your provider how they handle onboarding and transition.

Key Considerations

• Do they provide an onboarding plan for your team?
• What support do they offer during the transition phase?

Why It’s Important?

A straightforward transition ensures:

• Minimal disruption to your business operations.
• Your team gets on board with new systems and processes quickly.
• Smooth integration with existing workflows.

10. How will we measure Success?

How will your outsourcing partner track and report progress? Ask about their key performance indicators (KPIs) and how they measure success.

Key Considerations

• What metrics do they use to measure performance?
• How often do they send performance reports?

Why It’s Important?

Having clear metrics in place from the start helps:

• Ensure your outsourcing provider delivers the results you expect. 
• Obtain accurate insights into how things are going.
• Offer hints on where improvements can be made.

FAQs

1. What Australian firms should look for in an offshore team?

Look for an offshore team with expertise in:

• Local financial regulations
• Strong communication skills
• The latest accounting software

Also check they have robust data security measures in place and can comply with international standards.

2. What should I consider when selecting a BPO partner Australia?

When looking for a BPO (Business Process Outsourcing) partner in Australia, consider these factors:

• Experience with your industry
• Customer service
• Scalability options
• Data security protocols
• Ability to meet deadlines. 

It’s also ideal if you can choose an outsourcing partner that aligns with your company values and business needs.

3. What’s included in an outsourced accounting checklist?

An outsourced accounting checklist should include:

• Expertise
• Knowledge of industry-specific processes and best practices
• Technology use
• Data security policies
• Pricing structure
• Performance metrics
• Communication and reporting standards
• Customer support.

4 . What is offshore accounting due diligence?

When it comes to choosing an outsourcing partner, you want to do things right. So you need to thoroughly vet your offshore provider. Make sure they meet your standards for security, reliability, and performance. Check their credentials, review their processes, and assess whether they can handle your accounting needs efficiently while aligning with your operational requirements and industry best practices.

Conclusion

Choosing an outsourcing partner will help you get smooth, efficient and accurate accounting services. 

By this point, you should know what to ask an outsourcing provider. By asking the right questions and considering the factors we’ve discussed above, you can make an informed decision.

Remember, the right outsourced accounting services provider will help you save time, money, and ensure smooth operations. All that’s left is for you to focus on what matters most: growing your business.