Why UK Practices Should Outsource Their Work

Outsourcing is no longer just a cost-cutting tactic; it’s a strategic move that enables UK accountants to stay competitive, reduce administrative pressure, and scale efficiently. We are sure you must have come across accounting outsourcing, which is increasingly being preferred by practices and accountants because of the benefits it offers.

In this blog, we’ll explore why more and more accounting practices are outsourcing their work, the key benefits, and how it can future-proof your practice in today’s changing regulatory and digital landscape.

Why Are Accounting Practices Preferring the Outsourcing Option?

There was a time when accounting practices had all the expertise about the accounting tasks and regulatory requirements, and they did not have to look anywhere else. However, you will agree with us that the situation no longer exists due to the rapid changes in the UK accounting industry.

These days, accounting practices are coming under increasing pressure from:

• Complex HMRC regulations and frequent updates (e.g., Making Tax Digital)
• Talent shortages in the accounting industry
• Rising operational costs
• Increased client expectations for faster turnaround and real-time insights

Therefore, to stay updated and competitive in the accounting world, accounting practices are finding outsourcing to be a viable solution. By utilising outsourcing services provided by service providers, accounting practices have been able to maintain quality, meet deadlines, and free up in-house staff for higher-value tasks such as advisory services, tax planning, and client relations.

Key Reasons Why UK Accounting Practices Should Consider Outsourcing

These days, you will find many accounting practices using accounting outsourcing services to handle some vital accounting tasks on their behalf. Such trust by accounting practices on professional service providers has come due to some powerful benefits or reasons. Let’s go by each of those reasons in detail:

Focus on Core Activities

You must be increasingly getting bogged down with routine accounting tasks, such as bookkeeping, VAT returns, payroll, and year-end accounts. By outsourcing these routine tasks, you will gain more time to focus on core accounting activities and value-added services, such as client strategy, tax optimisation, and business development.

Access to a Skilled Talent Pool

According to ACCA, nearly 41% of UK accounting firms are facing talent shortages, which is becoming a significant roadblock to their growth, and outsourcing can help fill this gap. A professional outsourcing provider will give you access to professionals who are experienced and trained as per the UK accounting standards. These professionals are also proficient in operating the latest accounting software, including Xero, QuickBooks, and Sage.

Substantial Cost Savings

Hiring an accountant or expanding your UK accounting team comes at considerable expense, which includes salary, pensions, National Insurance (NI) contributions, software, and workspace. All these costs can be reduced or eliminated through outsourcing.

Faster Turnaround and Better Productivity

Many outsourcing teams are based outside the UK, thus enabling overnight processing and faster task completion. Additionally, outsourcing service providers have built-in proven workflow strategies for UK firms, which have helped accounting firms fast-track their accounting work.

Flexibility and Scalability

Scaling up your services during tax season and scaling them down during the quieter months was a challenge for accounting practices because it requires hiring and firing staff. Through outsourcing, you will gain the flexibility to handle sudden workloads and start or stop services as needed.

Improved Accuracy and Compliance

Compliance with the latest UK accounting standards was becoming a challenge for accounting practices to keep up with. However, that challenge is taken care of by an experienced outsourcing provider that already has trained staff who are regularly updated on the latest standards updates. Additionally, professional service providers have stringent quality controls in place, resulting in fewer data entry errors.

Business Continuity and Risk Management

A professional outsourcing service provider already has a robust system in place that can ensure business continuity. Under this system offered by service providers are:

• Disaster recovery plans
• Data backups
• Encrypted file sharing
• GDPR compliance

This reduces the risk of service disruption due to staff illness, resignations, or holidays.

What Type of Work Can UK Accounting Practices Outsource?

Here are common functions accounting practices successfully outsource:

• Bookkeeping
• VAT Returns & MTD Compliance
• Payroll & Auto-enrolment
• Management Accounts
• Corporation Tax
• Personal & Self-Assessment Tax Returns

How to Choose the Right Outsourcing Partner

Choosing the right outsourcing partner is a critical decision for any UK accounting practice. The wrong choice can lead to compliance issues, missed deadlines, and reputational risk. The right one, however, can help you reduce costs, meet client expectations faster, and scale your firm with confidence.

In this guide, we break down the five key areas you must evaluate before onboarding an outsourcing provider.

Knowledge of UK Accounting Laws and HMRC Regulations

Your outsourcing partner must be well-versed in:

• UK GAAP and FRS standards
• HMRC tax compliance (VAT, PAYE, CIS, SA100, CT600, etc.)
• Making Tax Digital (MTD) rules
• Deadlines, submission formats, and common UK workflows

They should be familiar with best accounting software such as Xero, QuickBooks, Sage, TaxCalc, and more. Hence, take a look at the case studies and staff qualifications while choosing your outsourcing partner.

ISO-Certified Data Security Protocols

When outsourcing, you’re not just sharing tasks—you’re sharing sensitive financial and personal data. That’s why ISO 27001 certification (the international standard for Information Security Management Systems) is non-negotiable.

It ensures:

• Data encryption during transmission and storage
• Restricted access control and user authentication
• Regular internal and third-party security audits
• Disaster recovery and backup protocols

Hence, while scanning for an outsourcing partner, ask for certain clarifications like:

• A valid ISO certification
• Examining their IT infrastructure and security policy

GDPR Compliance and Signed Data Processing Agreements (DPA)

As a UK accounting firm, you remain the data controller, even when outsourcing. Your provider must be GDPR-compliant and willing to sign a legally binding Data Processing Agreement (DPA).

The DPA should cover:

• The scope and purpose of processing
• The type of personal data handled
• Roles and responsibilities
• Data retention and deletion policies
• Incident reporting timelines in case of a breach

Transparent Pricing and Scalability

A good outsourcing partner will provide you with precise, upfront pricing that is transparent and free from hidden costs and offers the flexibility to scale services up or down as your needs change. Hence, when searching for an outsourcing partner, request their packages and services to determine what they offer, allowing you to make informed decisions.

Check Reviews and Client Relationships

Nothing speaks louder than a track record of trust. Reviews, testimonials, and case studies demonstrate the outsourcing provider’s performance in real-world conditions.

Frequently Asked Questions (FAQ)

Conclusion

Outsourcing does not mean that your in-house team will become irrelevant; it is about enhancing your capabilities, staying one step ahead of your competitors, and allowing you to grow strategically. Therefore, it is essential to select the right outsourcing partner that can reduce costs, improve turnaround times, and shift focus to higher-margin advisory work.

When it comes to choosing the right outsourcing partner, we would like to inform you that your competitors are increasingly finding Corient to have a capable candidate for providing outsourcing support. Corient has established itself as a trusted provider among accounting practices by offering tech-savvy and compliant accounting outsourcing services. Whether it’s bookkeeping, payroll, corporation, or VAT, we have got everything covered for you. Share your requirements or queries on our website contact form, and our executive will contact you as soon as possible.