Too much work is a nice problem for an accountancy firm to have – that is, until you really can’t take on any more. At that point, you need to take action to free up some capacity.
When capacity issues bite, many accountants assume they need to go straight to hiring new staff, or stop taking on new clients.
The first is a costly option, requiring a high investment of both time and money into your new hires. The second can seriously hamper any growth plans you have, holding you back from developing new and lucrative relationships with those prospective clients.
By contrast, outsourcing can increase your capacity with limited commitment, so you can focus on higher-value work.
Outsourcing vs. hiring
Outsourcing accounting comes with several benefits, and one of those is efficiency.
You’re handing over your workload to a team primed to complete that specific task quickly and reliably, with a much lower commitment for you than handling it in-house.
Because you don’t have to directly manage the work that’s outsourced, you’ll have more headspace and more time to focus on your firm’s core functions.
It also gives you the option to access extra support at the times you need it, and less during a lull.
For instance, you can lessen the stress of the self-assessment rush by outsourcing tax preparation work in December and January, without making a commitment for the quieter months of the year.
Outsourcing this way is both flexible and cost-effective.
When you hire a new permanent member of staff, by contrast, you’re agreeing to provide work on a regular basis through the duration of their contract, as well as making a significant investment in both time and money.
There’s the process of advertising and interviewing for the job, then onboarding and training your new hire, and then there’s the salary you’re paying them, alongside any additional benefits you offer.
All of this can absolutely be worth it if it means you’re bringing on board someone who is reliable, engaged and committed to the work they do for your firm.
But if you’re bringing someone in simply to offer a hand when things get busy, or in reaction to a capacity crunch, we don’t think this is necessarily the best option.
Get your team working on what’s important
By handing over the more basic, mundane parts of your work, you can free up time for your team to commit to higher-value tasks: more in-depth involvement in your clients’ businesses, strategic planning, and business advisory work.
In other words, work that requires more expertise and, let’s face it, tends to be more interesting than running payroll or doing bookkeeping.
By equipping your staff to carry out these higher-value services, you’re helping to develop their skills and knowledge in areas that are increasingly important for modern accountants.
With more rewarding and engaging work, your employees in turn should feel more motivated and interested in what they’re doing.
That means you can build an exciting working culture, while enhancing your quality of service and developing your firm.
To find out more about the many benefits of outsourcing accounting, get in touch.