Outsourcing is very beneficial to many accountants but it is important to take the time to assess your possible provider. We at QXAS have provided you with the rationale of outsourcing, the concerns and then a checklist of important aspects you should look for when choosing an outsourcing provider.

1. Outsourcinggetting it right
www.qxas.us.com
What is it about outsourcing
therefore that some accountants
have taken to their hearts and
which others do not perceive?
The use of outsourcing by accountants has long been
established; in fact the US accounts for 70% of the global market
in finance and accounting outsourcing but there is still a large
proportion of CPAs who take the “over my dead body” position.

2. Rationale for
outsourcing
UNDERSTAFFING
This is one of the main reasons why
CPAs look for help; there is under-
supply of qualified accountants
which is a problem in itself but
which is also driving up salaries.
Recruitment for the right candidate
is ultra-competitive.
INCREASING WORKLOAD
Tax season hell. Need we say more?
COST SAVINGS
The second reason links to the
previous point but is also associated
with general saving on areas such
as accounting software licenses,
associated employer costs, training,
lighting and heating etc. Cutting
costs can mean greater profitability
or more competitive pricing to
attract new business.
BUSINESS GROWTH
CPAs who acknowledge that
some elements of their day-to-
day bookkeeping and accounting
functions can be undertaken by
skilled outsourced accountants are
able to free up their time to develop
their existing clients and take on new
ones. They are then able to focus
on what they need to build their
business like skilling up and offering
additional higher billing services
such as wealth and tax management.
Concerns about
outsourcing
CPAs who outsource have
considered the risks and have
made a decision that using the
right supplier enables them
to minimize the risks to an
acceptable level.
LOSS OF CONTROL
Other than the fact that the person
doing the work isn’t physically sitting
in the office with you, you have just
as much control over what your
outsourced accountant does, how
they do it and when. When you
work with QXAS Inc, an accountant
is appointed to you and undertakes
your work for you. You can contact
them on a local call number and they
work the same office hours as you. If
you opt for the secure remote access
model, they can work directly on
your accounts on your server so you
see what they are doing.
SECURITY
Your clients’ data has to be managed
carefully as a data breach could be
catastrophic; and yet the security
level QXAS Inc operates at is likely
be far higher than you operate within
your own office.
STAFF LOSS
Many believe that to use an
outsourcer, you have to lay off some
of your staff; the reality couldn’t
be further from that perception.
Outsourcing supplements existing
staff, enables them to do what they
are good at and focus on higher
billing work. In fact, research has
shown that firms who outsource
are more likely to increase their
workforce than decrease it.*
Outsourcing - getting it right Outsourcing - getting it right
The Accounting Industry in the Age of
Globalization and Offshore Outsourcing,
Ryan P Daley, April 2008

3. try this checklist
Check their company credentials
Check the outsourcer’s
credentials; how long have they
been trading, how profitable is
the company? If you can, pay
them a visit and meet the people
who will work on your account.
Data security standards
Check how they would handle
your precious data; where is
it stored, does it go out of the
country; what security do they
have in their offices?
The right experience
Do they have people who have
worked in US accounting and
taxation and do they maintain a
regular program of training?
Take up references
Ask to speak to some of their
other clients, preferably
businesses like yours to get a
good understanding about how
they operate, the pluses and
negatives of their operation.
Working hours?
Do they work your hours or their
own? Whilst a quick turnaround
time is great, if you are never able
to speak to the people working on
your account, that benefit will be
very short lived.
Commitment clarity
Do you have to commit to months
of work or will they work ad hoc?
Make sure they are happy with
ad hoc work and that you don’t
have to commit to purchasing
hundreds of hours of their time
each month (unless of course you
want to).
Give them a trial job
You could give them work you
have already undertaken yourself
to assess how it compares or even
give them some work you need to
get done; check how quickly they
turn the work around, look at the
accuracy, the presentation and
look for value-adds like analysis
for example.
Which accounting software can
they use?
You need to ensure that they work
with the same software as you do;
you don’t want to have to translate
files from one format to another.
What work can they do?
Do they have the capacity to look
after all of your bookkeeping for
you or are they just interested in
the basics?
If you are planning to work in partnership with someone you would want to know all about them – talk to
QXAS Inc about how they operate, let them take the checklist test, talk to some of their clients – and then
become a CPA who understands why many accountants use outsourcing.
Thinking of outsourcing?
NEW JERSEY
248 Lorraine Avenue
Upper Montclair
NJ 07043
T: +551-227-8165
E: contact@qxas.us.com