What does outsourcing accountancy services offshore mean for the accountancy sector?

Cameron McCann joined Adlestrop Consulting in 2017 to focus on the independent accountancy market for audit, advisory and and tax. Cameron shares his thoughts on the increasing trend of offshoring accountancy work and what it means for the industry. 

As the world of finance evolves, offshoring is being viewed by many larger firms as a silver bullet to aid both service standards and profitability.

We have all encountered offshore contact centres as part of our daily life but would we be happy using this way of working in handling accountancy work that has always been provided by a UK practice.

Is it good or bad for the British accountancy market?

There is wide spread discussion within the accountancy field about the pros and cons of outsourcing work outside of the UK with differing opinion.

A firm immediately increases their capacity to take on more work and improves strategic flexibility. This allows them to grow quicker without having to employ more staff,reducing the costs associated with expansion.

It has also been suggested that outsourcing work provides firms with an opportunity to access scarce skill sets without the need to invest in training or employing an experienced personnel in a specific field. Thus, allowing firms to increase their service offering and become attractive to potential clients as they can now provide a service in a new area of accountancy that they previously didn’t have access to.

Outsourcing firms now employ people with British qualifications using commercial and professional software that is used by firms in the UK which some say removes the risk around standards and quality of work.

Will it reduce roles in the UK accountancy market?

One reason for looking overseas has been a suggestion that there is a lack of qualified talent available.

If firms are beginning to move large quantities of work offshore it will have a direct impact on the number of opportunities in accountancy practices as there won’t be a need to have teams based in the UK.

Will it simply just be a business development function?

Without the need for qualified accountants to be based here, the only requirement for accountancy firms to have staff in the UK could be to perform a business development function and to manage the communication with clients.

By simply moving work offshore, it removes opportunities for young professionals looking to building a career in accountancy.

What is the importance of a client and accountant relationship?

It raises questions around ethics and the relationship with clients that should be built on confidence and trust.

Building relationships with clients helps to gain a good understanding of a client's business, how they work and the type of support and advice required.

Outsourcing services could undermine the value of a client/accountant relationship; with clients simply becoming a number.

Accountants should be viewed as a confidential source of professional advice – how can this be the case if an accountant practice isn’t providing all of the work on a client’s finances and accounts?

Business should be built on relationships, regardless if it is accountancy, recruitment or marketing. Relationships should be the foundation to fully understand requirements, issues and expectations.

Outsourcing accounts removes the relationship between client and accountant – the individual working on the accounts simply sees figures, there is no understanding of the business or the people in the business. Those who are running practices in the UK know their clients, building an understanding of the issues they face and where they want the business to go but this cannot be communicated effectively when being outsourced.

The distance presents significant problems around control and management which could lead to a lower standard of work and running the risk of ruining reputations.

Is the technical quality going to suffer?

Outsourcing firms now employ people with British qualifications using commercial and professional software that is used by firms in the UK removing the risk around standards and quality of work.

It is all well and good that outsourcing firms offering accountancy services employ individuals with ACCA and ACA qualifications but they lack experience in the UK market, there is no knowledge of how things actually work in practice. This leads to mistakes and poor quality of work, resulting extra costs in order to correct and poor level of service to clients.


There is also a heightened security risk, reports of instances of financial crime and security around client data and intellectual property. These risks are posed when outsourcing an area of a business process but it is a significant risk when this is highly sensitive financial information.

All successful businesses aim to improve processes, become more efficient and to reduce costs but this shouldn’t come at the expense on the service provided to clients. At the end of the day it is a competitive market and clients can always choose another supplier.