Is Outsourcing Right for your Business?

Businesses across the U.S. are struggling to deal with globalization, staffing issues, managing workflow and freeing up resources to focus on strategic growth initiatives. Financial professionals, accounting firms in particular, are looking for strategies to ease seasonal staffing and time management problems as well as ways to add more value to their clients. Outsourcing is addressing these key challenges.

Many businesses still are very hesitant to embrace outsourcing as a means to growing their practice and increasing productivity. To help you decide whether outsourcing is right for your business consider the following common questions:

Q: How can I be sure private client data will be secure?

A: Superior security measures and processes; make sure you have a signed service agreement (including confidentiality guarantees). Some important security features to look for when choosing a vendor are if they support a paperless monitored work environment. Consider network security such as if their site is encrypted and uses a firewall. Also, verify how they hire their employees. Do they adhere to stringent background checks and do they require a particular level of education or training?

Q: Is it against the law or code of ethics to utilize outsourcing?

A: No, as long as disclosures are made to the client. There is typically a provision in most privacy statements that disclose that the firm may be a need to disclose client information to third parties who provide help in servicing their accounts. Most firms reference outsourcing directly or indirectly in their privacy statement in order to comply with the Graham Leach Bliley Act. In either case, as long as the taxpayer is assured that his/her return will be reviewed by the firm's tax department prior to filing, they generally respond favorably to outsourcing.

Q: How can I be assured that the work being done meets the high quality standards that I guarantee my own clients?

A: Again, investigate whether the vendor employs a skilled staff. Verify that the vendor performs quality checks and audits by seasoned U.S. staff and conducts rigorous and continual ongoing training of the tax and accounting team.

Q. How can I ensure outsourcing will be successful for me?

A. Communication with vendor. In the end, it is up to both the vendor as well as the client to make sure the lines of communication are open. The more the vendor understands the needs and workflow of the client and the more the client understands the outsourcing process, the better the relationship will be for both parties.

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