Question 1

Why Outsourcing?

Accepted Answer

You could save your accounting costs by 50%.
You could focus more on growing your business (by offloading repetitive/process driven tasks).
You could avoid the hassle and cost of recruiting accounting staff (and managing them).
You could avoid overheads cost on recruiting accounting staff.

Why best performing companies often outsource?

Top performing companies in every industry offer three things:
Better customer experience.
Faster response time.
Cutting edge service.

Doing all of this, while managing every task involved in running a business takes a great deal of time. The time is better spent doing jobs required for your customer rather than focusing on the non-core tasks (like accounting). Time spent on doing accounting adds no value to customer relationship or business growth. That's why best performing companies choose the path of accounting outsourcing.

Question 2

How to plan for outsourcing?

Accepted Answer

Planning is the most critical element of outsourcing. With our outsourcing experience and knowledge on this subject, we can tell you why outsourcing goes wrong. It goes wrong because of three reasons:
Poor planning.
Hurried execution.
Wrong choice of outsourcing partner.

When you decide to outsource, you must identify the right outsourcing partner, plan it properly and give it sufficient time for execution. Your outsourcing partner should be flexible to match your needs, culturally a good fit for you, have ability and track record of executing the project and more importantly bring in knowledge and a value addition to you.

The companies that went with clear outsourcing strategies have enjoyed great success in outsourcing and have outgrown their competition. To stay competitive, it is important for you as a business to rethink your strategy. Find out areas where you do not create value to the customers and offload these tasks to an outsourcing partner.

Accountancy outsourcing is now an important strategic option available to you. It allows you to cut costs while giving you the time to focus on the growth areas. Many profitable companies are enjoying the benefits of accountancy outsourcing for some years. Why don't you join them now?

Question 3

What's Your Outsourcing Strategy?

Accepted Answer

Achieving success in outsourcing depends on carefully planning your outsourcing strategy before engaging in a relationship with your outsourcing partner. The strategy should be created based on long term goals of your business. In our experience, the top 4 goals that help to formulate outsourcing strategy are:

Streamlining process.
Increasing productivity.
Achieving efficiency.
Saving money.

Streamlining process

Streamlined business process is essential if a business wants to sustain its growth while maintaining or increasing its profitability. A streamlined process helps the business to provide its customers a stable and high-quality service every single day.

A company such as McDonald's serves 1000's of customers every day and is still able to serve its customers on time, with consistent quality. It continues to grow its business despite severe competition and market saturation. Their growth is attributable to consistent quality and service level. This growth is made possible because of its streamlined process. While planning your outsourcing strategy, make streamlined process as your number 1 priority and goal.

Increasing productivity

Higher productivity per hour means higher prices, quicker turnaround of each job and more project completion per staff. Increasing the productivity must be a continuous on-going goal for every company irrespective of whether they employ outsourcing or not.

However, when mulling the option of outsourcing, it is very important to work together with your outsourcing partner and find ways to increase your productivity. We have helped many accountancy practices and businesses increase their productivity (complete the jobs quicker and with same or better quality of output) when they outsource accounting jobs to us.

Achieving efficiency

If productivity is one headache, needless to say efficiency is another major one. Achieving efficiency means working less and achieving more. Highly efficient companies tend to achieve higher profit margins. The ultimate goal of any company should be to increase their profit margins, and not just sales numbers.

Most accountancy practices that outsource to Pinnacle Outsourcing Solutions achieve profit margins of 50% and in some cases even 60%. This is possible because of highly efficient operation. You must always have the goal of achieving better efficiency when you outsource.

Saving money

Process, productivity and efficiency when coupled together at the right proportion, can result in cost savings. Not just some cost savings, but phenomenal cost savings. Even though outsourcing industry started off with the primary aim of cost savings, nowadays it is not the only goal. Now saving money is a by-product of better process, higher productivity and efficient operation.

When you base your outsourcing strategy based on the 4 most important goals of streamlined process, increased productivity, efficient operation and cost savings, you will achieve success with accounts outsourcing.

With our local team in the UK, we can work with you closely and help plan your outsourcing strategy right from the beginning. We will share our experience and case studies of similar successful outsourcing engagements with you. Our hourly and fixed rates are the best in the market for such a premier service. Contact us today for a no-obligation free consultation.

Question 4

How to choose outsourcing partner?

Accepted Answer

When you are looking for the right outsourcing partner, you must look for certain characteristics in your outsourcing partner. Those characteristics are:

Domain experience and track record.
Local presence and ability to provide instant support.
Competitive rates and ability to deliver quality service.
Flexibility, scalability and adaptability.

Domain experience

Successful execution of similar projects in the accounting outsourcing domain is a good indicator of the ability of the outsourcing supplier. It is better to choose a domain specialist outsourcing supplier than a general outsourcing supplier. Domain experts will typically have the knowhow, latest processes and methods. So if you want to outsource accounting then choose a specialist accounting outsourcing provider.

Local presence

Communication and transition of work is very important especially in the early stages of the outsourcing relationship. This will be greatly aided if the outsourcing supplier has a local presence in your country. This provides an opportunity to quickly find if the supplier is the right match and it can save a lot of your due diligence efforts.

Price and quality of service

Quality comes at a price. But a balance can be struck. Watch out for the guaranteed quality of service at a competitive price. The service level agreement should include the expected quality and agreed in advance with your offshore partner.

Flexible partnership agreements

Ability of the outsourcing supplier to scale up the operations and do it quickly is crucial. Flexibility to adapt to your exact requirements is very important in an outsourcing partnership.

Apart from the above, history, track record, strength of senior management, stability of the outsourcing provider are a few other factors to consider.

Why think twice when selecting outsourcing partner?

Outsourcing is like a marriage. You don't get into a marriage unless you really know the person whom you are getting married to. Likewise, you cannot choose an outsourcing partner without fully knowing about them, their strengths, weaknesses, cultural fit and a lot more.

In marriage you share important information, form trust while sharing good and bad times. A good level of transparency must exist for the marriage to be successful and long lasting.

Just as in marriage, even in outsourcing, you are giving control of an important function of your business. You want it to be in safe hands. You want your outsourcing partner to advice and guide you through good and bad times. Failing this ends up in messy divorces. That is why you must think twice when selecting your accounting outsourcing partner.

Question 5

How do we ensure data protection?

Accepted Answer

Because of the way the Data Protection Act works, we cannot actually be classified as a “data controller”. This gets very technical, so we have written a special briefing note on our data security policies, which you can then incorporate into your own.

You want your outsourcing partner to be aware of their data protection responsibilities as you do. We understand this and that's why we take every possible measure to assure your peace of mind. We have taken very detailed and elaborate measures to ensure your 100% peace of mind.

Our offices

CCTV cameras to monitor all our work floors.
24/7 security personnel at our office building.
Biometric fingerprint reader access to prevent entry of un-authorized personnel into offices.
A detailed disaster recovery plan.

Systems and networks

All our computers are secured by multiple levels of password protection.
Secure online data transfer system is similar to that of used by banks and credit card companies.
Data transfer system uses 128-bit encryption technology.
All computers are monitored using activity monitoring software.
USB storage devices and DVD/CD drives are disabled on our computers.

Staff

Trained on data protection principles.
NDA (Non-disclosure agreement) and Confidentiality agreement with every staff member.
Independent security screening before commencing employment.

Apart from implementing all the security procedures, we are also bound to the confidentiality regulations as we are a limited company. You are not dealing with an unknown foreign company. You can be rest assured that your data is 100% safe with us.

Question 6

How will it work?

Accepted Answer

Step 1: You send us the information

You collect files and papers from your clients. You scan and upload these documents on the necessary platforms for us to access. Wherever possible, you can send the login credentials, spreadsheets or PDF documents in relation to relevant platforms/material.

Step 2: We prepare the accounts (as per your instructions)

We will review the information you send. If we need any additional information, we will email you. Upon receiving all necessary information, we will prepare and finalise your work. We align with the same accounting software used at your office. Any adjustments or corrections will be made during this stage.

Step 3: You send it to your clients

We will send the working papers, backup files and reports as per your instructions. You can do a final review and send it to your clients. We can also submit to HMRC on your behalf.

What information do we need from you?

Bank statements
Credit card statements
Your client's receipts
Bills
Invoices
Credit notes
Purchase orders
Previous year's accounts
Any other relevant documents

How to send the information to us?

You upload your information to drop box or Google drive. (or)
Save documents in your computer and give us remote access. (or)
You can also post the documents to our UK office.

How do you communicate with our accountants?

You will have a dedicated account manager.
Your account manager will be available to you on a day-to-day basis.
You can communicate with them via Skype, Email, Go to Meeting etc.

Getting started

Contact us via email or phone.
We will connect with you and gather your requirements.
We will send necessary paperwork.
You are now ready to start.

Question 7

GDPR Compliant & ISO Certified Organisation

Accepted Answer

GDPR regulatory compliance

We were always committed to implementing the GDPR by 25 May 2018. Our team had been working hard to ensure that our clients and our businesses are prepared for GDPR before the deadline and getting compliance framework validates the measures we have taken to enable security, confidentiality, and availability of our customer data.

ISO Certified

Our company proudly holds ISO certification, signifying our dedication to upholding the highest standards of quality, efficiency, and customer satisfaction across all facets of our operations.
ISO certification serves as a testament to our unwavering commitment to continuous improvement, risk mitigation, and regulatory compliance. It provides assurance to our clients, partners, and stakeholders that we adhere to stringent standards, prioritize excellence, and consistently deliver products and services of exceptional quality.

GDPR Compliant outsourcing partner

GDPR impacts data controllers and data processors alike, making it imperative for outsourcing companies (as data processors) to ensure that their data processing activities are carried out in accordance with the data protection principles set out in the GDPR. Failing to get data protection right is likely to damage your reputation, your customer relationships and, ultimately, your finances.
GDPR article 28 “Requirements of a Data Processor” mandates that a data controller shall use only those processors that provide sufficient guarantees to implement appropriate technical and organisational measures.

GDPR Compliance & ISO Certification - What measures we have taken

Data security has always been of paramount importance to us, but GDPR & ISO Certification makes the security and privacy aspects even more important.  As data processors, outsourcing suppliers have to commit to enhancing their data inventory and mapping processes and revising written data processing agreements (DPAs).
To become GDPR compliant & ISO Certified, we have implemented the following features:
As required by the framework, we now offer all our accounting, finance and accounts, payroll and recruitment clients with a Data Protection Agreements (DPA) with GDPR clauses as a standard. This enables us and our clients to comply with GDPR & ISO requirements. All our revised written contracts are based on the ICO (Information Commissioner’s Office) guidelines, which include these terms:
We have adequate levels of data protection controls in place for the transfer and processing of data
We only process personal data on documented instructions from our clients
We have a process which anonymizes and encrypts data
We securely delete data after the required retention period /at the end of the contract

FAQs

Frequently asked questions