The sync and coordination between your accounting outsourcing teams and in-house accountants is like a relay race, where the participants comprise members of both teams. If there is a lapse in communication or coordination, you could incur huge losses. When outsourcing your accounting practice, the firm leaders must treat this business process as more than just a means to reduce cost. With the right outsourcing practices, you can change the course of your business for the better. About 37% of businesses are outsourcing their accounting process, and it is constantly rising. This is proof that this model is working.
Global outsourcing teams are gradually blending seamlessly into modern accounting businesses. And the holistic success lies in this integration. There is a need for a strong framework that makes room for collaboration, communication, and goal alignment. Without this, the benefits of outsourcing can go for a toss.
Challenges in the integration of outsourced and in-house teams:
Many firms struggle to bring both teams on the same page. The problem with this is that at the end of the day, clients suffer. Before we get to the solutions, let us navigate through the challenges. This will help you spot the problems within your firms and find a solution that will work for you.
- Cultural and geographical differences: Most firms in the US outsource their accounting tasks to India or the Philippines. Each country owns a distinct work style, communication choice, and corporate and cultural values. These cultural gaps can be difficult to understand, leading to challenges in communication gaps and misaligned approaches.
- Time zone differences: Working across different time zones can pose a threat of delays. This, in turn, leads to delayed communication and progress of projects. Another challenge is the language barrier. Both teams must end up speaking the same language so that both of them understand what the other is trying to convey.
- Organizational cultural differences: Outsourced teams have different organizations and workflows, decision-making processes, and team dynamics. This can be difficult for internal teams to create a synergy with the internal teams. Initially, it can be difficult for accounting firms to keep the pace and flow of their outsourcing counterparts.
- Expectation alignment and performance standards: Both internal and outsourcing teams need to stay aligned in terms of goals, expectations, and performance metrics. However, with different global teams, it can be difficult to meet at the center of these goals and expectations.
Finding the balance between two teams – Success integration measures:
Use clear communication channels:
Communication lays the foundation of seamless outsourcing integration. It is important to convey ideas, thoughts, process improvements, etc, to reduce misunderstandings and make the processes seamless. Here’s what teams can do:
- Use Real-Time Communication Tools: Tools like Slack or Microsoft Teams allow for real-time updates, chat, and video conferencing, ensuring quick resolutions to any questions or challenges. This also allows both teams to stay connected.
- Establish Regular Meetings: Daily stand-ups, weekly reviews, and monthly progress meetings create a cadence for ongoing collaboration. When outsourcing, teams work from geographically different locations. Regular meetings allow them to stay connected and keep up.
- Provide Communication Training: Cross-cultural communication training can help bridge language and cultural barriers, making communication smoother and more effective. English is widely spoken globally and ensuring teams who can speak English fluently can be the cornerstone of success.
Aligning goals and expectations:
One of the major reasons why outsourcing partnerships fail is often because the teams are not on the same page. They have different expectations and varied ideas on how the goals will be met. Here’s what you can do:
- Strategy Sessions: It is the due responsibility of the accounting firms to ensure that the outsourced teams are brought up to speed with the scope of the project, KPIs, timelines, and expectations. They should also encourage the teams to speak their minds when in doubt.
- Ongoing Collaboration: In outsourcing, collaboration is not a one-time thing. Continuous dialogue and collaboration can help adjust expectations and re-align goals when necessary.
Collaborative project management tools:
There is no dearth of advanced technology, allowing global teams to work together. There are plenty of project management tools that can keep everyone aligned and ensure transparency in task progress.
- Leverage Tools to your advantage: Tools like Asana and Trello enable shared task lists, deadlines, and priorities, allowing internal and outsourced teams to track project progress seamlessly. This also allows accounting firms to know what their extended teams are doing and address their concerns on the platforms spontaneously.
- Shared Ownership of Goals: Empowering your outsourced teams is as essential as that of the in-house teams. Giving both teams the necessary autonomy can help them share ownership, achieve milestones, and give a sense of shared responsibility.
Thorough knowledge transfer:
The first step to the success of an outsourced partnership lies in a robust onboarding process, where both teams take the other through their processes and workflows, and come to a consensus on how things will work.
- Thorough Onboarding: Provide clear documentation, process flows, and access to internal tools so that outsourced teams can quickly understand your business needs.
- Mentorship Programs: Establishing mentorships between internal and external team members fosters collaboration and helps build a sense of unity.
Leverage the time-zone differences:
While many firms pursue time zone differences as a challenge, this can work in your favor. Your outsourcing partnership will maintain a “follow the sun” approach. This means when you are resting, your extended teams work. Most of these outsourcing partner also have a team working that matches your time zone. This ensures that your tasks are done in advance. But following a few things can make it easy:
- Assign tasks in advance: Assigning tasks in advance will allow the outsourcing teams to pick up these jobs even when you are not available, ensuring there is no time lapse.
- Use the project management tools efficiently: Since these tools act as a clear dashboard, encourage your teams to put their queries and concerns out there and you can address them when you are available. This helps reduce the dependency and unnecessary wait period.
At Finsmart Accounting, we have been catering to accounting firms for the past 17 years. We understand that the integration of both teams can be challenging, especially for those who are outsourcing for the first time. Hence, we have curated an Embedded Outsourcing model, which helps ensure that our teams are seamlessly integrated into your organization and that we act as an extension of your team.
To know how we can help you become successful, write to us at connect@finsmartaccounting.com.
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
