Time has come when accountancy practices must do usability analysis of their outsourcing process. As the work transferred does not work on “As is” basis , real viability of whole process is a big question.

The Biggest question  is , are we outsourcing TASK or PROCESS. or do our outsourcing partners have capability to manage process , rather them task.

I have seen lot of accountancy practices who wish to outsource their backoffice work because they know, it is happening all over. But there is an difference in understanding how it works for some organizations and doesn’t work for others.

Effective outsourcing is where processes are managed in a system and then outsourcing option is chosen for cost effectiveness and time advantage. But small firms who does not have managed practice (and rather they are dependent on one or two persons for routine compliances work) cannot get desired benefit from outsourcing.

As per my experience on a scale of 100 bookkeeping or accounts preparation work is just 20-25% of total time spend/work done for client. Rest of the time is spend on other activities including follow-ups with customers, HMRC,CH, advisory services to clients , billing collection etc.

Business segments who uses outsourcing on “As is” basis , generally have fair idea of viability of whole process and they do not deploy more resources on outsourced process. But accountancy practices doesn’t have much options as 75% of work is till done by their people, which some time is very time consuming.

The resources which are used in outsourcing can be used to manage the process rather then task and accountancy practices have to do through analysis of their existing processes to achieve the better viability from outsourcing.

The crux of this topic is to look for ways for effectively managed practice rather then just outsourcing as the only solution .