Outsourcing accounting function has seen an accelerated trend in the past year. The Pandemic has caused many disruptions, one of them is newer challenges to the outsourcing industry.
Managing expectations is a key challenge at first. Whether you’re outsourcing for the first time or considering a regular shift to remote working, managing expectations is the first challenge. Remember, there is no one-size-fits-all type of solution with accounting outsourcing.
At Pransform, we take a customized and scalable approach in dealing with the accounting outsourcing needs of our clients. It helps us to offer tailor-made solutions to our clients.
Top Challenges Faced with Accounting Outsourced Function
At Pransform, we believe in transparency of relations with our clients. Setting clear objectives and manageable customer expectations are only the first steps in our long-term serving relations with our clients.
Let us discuss the top five challenges faced with accounting outsourcing services.
1. Confidentiality
Many first-time outsourcing clients refer to confidentiality as their biggest concern. Sharing financial and accounting data with a third-party service provider can be risky. It can pose several challenges with increased risks over shared services.
Remote accounting is becoming an increasingly popular practice, especially in the aftermath of the Pandemic-hit economic world. However, accounting outsourcing providers can overcome the confidentiality challenge with investment in input technology.
At Pransform, we take pride in offering the latest cloud accounting solutions to our clients. Cloud accounting provides the latest security features. Our professional team ensures the confidentiality of client’s information at every level.
2. Data Privacy and Protection
Privacy and protection of data is another major area of concern for clients looking for outsourcing services. Data shared with service providers can get lost easily. Cybersecurity challenges keep arising with the advent of newer technology too.
Data privacy and protection risks in a highly transformative digital world are real threats. The complexity of digital transformation requires a proactive approach in managing these risks.
At Pransform, we initiate the process by understanding the preparedness of our clients to deal with data privacy and protection. We ensure our clients understand the value of data for their competitive advantage.
3. Communication Barriers
Some businesses may be reluctant to contract accounting outsourcing due to communication challenges. These challenges may arise due to fears of lack of language compatibility, lack of understanding of the local laws, cultural differences, and so on.
Perhaps communication barriers come as a misconception. We at Pransform, have a team of professional accountants who can communicate clearly with our clients in the US. We have an experienced and qualified team that is well-versed with the US tax and regulatory environment.
4. Transfer of Knowledge
The ability to transfer information and skills with outsourcing services can be challenging. It is a major concern for many clients. It is an expectation gap that has lived up for years with below-par services from many outsourcing firms.
If the accounting service provider does not take a collaborative approach, the transfer of knowledge is impossible. The ability to collaborate with clients on key issues is critical. It also concerns clients when they make a value-for-money comparison. Hence, it’s critical that we transfer the right information and share valuable knowledge with our clients.
5. Quality Control Concerns
Quality control in the accounting function relates to the services renders by accounting firms. Clients often go through bulky reports that do not contain valuable outputs for them. It happens when a service provider fails to capture the right data. It also becomes challenging when service providers fail to turn data into valuable information.
Accounting service providers must analyze the bigger picture behind the calculations and input data. Quality controls must ensure that correct costs, expenses, and revenues are captured. It must also ensure to turn this data into valuable insights for the clients.
Lack of quality data will block the management decisions. It may happen due to erratic data, poor organization of data, misinterpretation, and false assessment of key performance indicators for the clients.
Pransform Can Help to Overcome the Outsourcing Challenges
If your accounting firm is also facing these top challenges, we can help your overcome these issues. At Pransform, we offer the right tools and skill-set that can help you defeat these challenges when offering services to your clients.
We believe in building partnerships that are built on trust and confidentiality. Our team helps clients in a way that ensures their success. We do as we are as invested in our client’s success as they are.
We have helped our clients find answers to their problems. You can reach us HERE to find out solutions to the challenges you’re facing.