Dispelling the myths of outsourcing client accounting
The rental market shows no signs of slowing with ongoing high demand, fuelled in part by the pandemic, creating a buoyant market throughout the UK.
2022 is a great time to expand your business, but owners are often time limited and under pressure to juggle all the elements which make the business successful, before they even think about growing.
Fortunately, there is a solution. Outsourcing will help meet demand and free up vital time to work on other areas of the business.
Outsourcing has experienced rapid growth in recent years, and since April 2019 we have observed a sharp rise in demand for our outsourced client accounting services. The pandemic further focused attention on businesses as owners had to redeploy their teams to cope with these unprecedented circumstances.
Business owners should consider: how much is their time worth?
A study by Deloitte highlighted the top reasons businesses decide to outsource which include: to reduce costs (59 per cent); to focus on core business (57 per cent); to solve capacity issues (47 per cent).
When it comes to deciding whether outsourcing client accounting is the right choice, there are several myths which are holding business owners back from taking the next step.
Here are some of the commonly held myths around outsourcing:
1. MYTH: It will cost too much
Providers of outsourced services to the lettings industry should offer significant economies of scale as well as real expertise.
Business owners should consider: how much is their time worth? How could this time be better spent?
Many agents overestimate the cost of outsourcing. Instead, they take on the task themselves or delegate it to an administrator who may lack the skills or training to perform this efficiently. Allocating this time to focus on other areas of the business can earn significantly more money than the cost of outsourcing in the first place.
2. MYTH: I can’t trust an external supplier to succeed at this job
When letting agents doubt an external supplier can perform this job well, consider this: outsourcers are specialists and carry out these tasks, day in, day out.
Seek reassurance. Look for a provider which boasts professional indemnity insurance that is robust enough for the business they undertake – an outsourcing company should be happy to be completely transparent about this. Ensure too, that outsourcers have specialist cover suited to their business.
Be wary of any Client Accounting Service Providers who refuse to set up individual client accounts for you. Pooled client accounts or sweeping client money to an account beyond your oversight should ring alarm bells.
3. MYTH: I will lose control
As the business owner, you are the decision-maker, and this won’t change.
Companies who provide outsourced services should be able to deliver a virtually seamless transition and a consistent level of service. They should also offer genuine transparency where your information is always available to you.
At The Letting Partnership our agents have 24-hour access to their Client Account.
4. MYTH: The outsourcer won’t be able to work with my systems
It’s true that there can be issues with legacy systems and integrating software, but if in doubt all you need to do is ask.
When it comes to client accounting, letting agents should expect an outsourcing partner to be able to work with major software providers.
There should not be any need to buy a new piece of software to work with your provider.
Agents who adapt to utilise their team’s strengths stand the best chance of not only surviving but thriving in the current market conditions.
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