Entrepreneurship Financing

The 8 Biggest Outsourced Accounting Mistakes You Can Easily Avoid

Creating mistakes can seriously intervene in the process of client retention and new client acquisition. Hence, the outsourcing team related to bookkeeping must avoid committing a mistake. Once they commit a mistake, they can never change the horrible outcome. They will lose the trust of the client forever. Besides, committing mistakes for just even once can garner a bad reputation to the outsourcing bookkeeping company. No company wants that, right?

Following are the 8 biggest outsourced accounting mistakes that one must avoid:

Not Having a Clear Understanding of the Industry, Client, or Business

The lack of knowledge related to the client or his industry or business is one of the biggest mistakes of an outsourcing bookkeeping team. Generally, the outsourced accounting team does not bother to invest the proper time to understand the client’s business. They feel that this much hard work will go in vain since they are not getting paid for this. Business organizations, on the other hand, want the outsourcing company to have proper knowledge about their business.

The outsourcing time must invest some part of their time in acquiring knowledge about the client’s business or company. Once the client sees how much hard work the team is putting in, he will definitely reward them for their additional work.

Not Coming Up with a Robust Brand Image

Most of the companies or business organizations are not able to distinguish one outsourced accounting company from another. This similarity is because of the lack of proper branding among the outsourcing bookkeeping firms. These firms do not take the pain to articulate how they are different from their rival companies. They do not have a strong brand image.

The lack of branding compels the clients to select these firms on the basis of their fees. Lower the fees; more is the chance of selection. A low level of fees also refers to a lack of services and enough hard work. The client will not be happy with the results. Hence, branding is extremely necessary. The outsourced accounting firms must have a robust brand image. They must highlight their USP so that the clients will be able to select the perfect firm according to their needs and requirements.

Not Being Enthusiastic and Pro-Active Enough

The lack of enthusiasm and enterprising thoughts can prove to be quite fatal for an outsourcing bookkeeping firm. It generally waits for the client to initiate a particular issue. However, a client may not be aware of the underlying issues. They are not professional, after all. That’s why they have come to seek the professional help of outsourcing bookkeeping companies.

The outsourcing team must think about the wants of the client, his goals, and how he wants to get there. One cannot simply wait for the client to provide all the details. It is the outsourced bookkeeping team’s responsibility to recognize the underlying difficulties and issues in business. The team should be pro-active always. This will enhance the brand value of the team. Clients will be happy and satisfied. This will lead to client retention.

Providing Only Compliance Services

Many clients stay frustrated with their outsourcing bookkeeping firm because of this. Clients prefer some extra services other than the core services. While these outsourcing firms offer only conventional accounting services. Clients seek those outsourcing companies which can identify the real problems.

The digital era is compelling for everyone to provide much more than conventional services. It is the era of something extra. The client will feel satisfied only if he gets extra services other than the core services. Just providing data entries and related data is not enough. Clients look forward to business advice and effective strategical guidance. Therefore, the outsourced bookkeeping companies must provide these services, too, to attract more and more clients.

Not Billing Worth Their Value

Clients indeed leave an outsourced accounting firm because of the fees. But this the partial truth. They leave a firm because they feel that the services they are getting are not worth the fees they are paying. The fee charged by an outsourcing bookkeeping company reflects its confidence in its effective services. It shows that the outsourcing firm is capable of providing efficient services according to the needs and requirements of the clients.

The outsourcing team needs to show to the client that they want to become a partner in the success of the client’s business. Such an approach enables the firm to charge premium prices from the clients.

Not Profiling the Perfect Client

A lot of outsourcing bookkeeping firm is in the habit of accepting any client who walks through the door. They do not categorize between the individual who requires professional assistance in tax return filing and the small business owner who requires the most effective bookkeeping services. It is necessary to understand that a single outsourcing firm cannot cater to all the needs of all types of clients. Trying to meet all the requirements of all types of clients, and trying to satisfy them will go in vain.

Such outsourcing teams must let their trained staff and referral partners understand the client type, their needs, and demands. This will enable the outsourcing team to provide effective service and, at the same time, enhance profitability.

Not Able to Portray the Image of a Trusted Advisor

A trusted advisor is the ultimate brand image of the entire outsourcing accounting team. It takes time to gain a trust-based relationship with the clients. The outsourcing team must bring to the fore a trusted advisor who show care and concern to the client. The client will appreciate this behavior as it is beyond the give and take relationship. Time is essential for acquiring the trust of clients. An outsourcing bookkeeping company must ensure the clients about its honesty and loyalty.

Lack of Referral Network

It is very important to attend different networking events. The outsourcing bookkeeping firms need to take time out and get out of their comfort zones to build up referral networks. Networking can improve revenue. The outsourcing team comes in contact with other professionals. This will help them to offer additional services other than core services. As a result, clients will be happy and satisfied.

An outsourcing bookkeeping firm needs to avoid committing all these mistakes to gain success and become the leading bookkeeping firm.

Author’s Bio:

I’m currently working as a Chartered Accountant with Payroll Outsourcing Company. I have a great passion for best outsourced accounting services . In the previous couple of years, I have worked with big and small clients across numerous continents. I have a keen interest in outsourcing payroll processing, accounts payable outsourcing, BPO outsourcing, outsource finance, outsourcing accounts, outsourcing bookkeeping, offshore Back office services, etc.

 

Leave a Reply