Client Accounting – Risks and Rewards of Outsourcing
When it comes to client accounting, what are the risks and rewards of outsourcing?
The obvious main reward is to gain the time and space to be able to focus on core business goals and planning. No more worries about staff holidays, sickness or turnover. There is also the very real chance that you will actually reduce your costs.
But what about the risks?
Partner with the wrong outsourcing company and relationships with your landlords could be damaged and employees will feel undermined. The consequence of this is the inevitable damage to your agency’s reputation.
outsourcing your client accounting could be one of the best business decisions you ever make
So, when it comes to choosing an outsourcing company what can you do to make sure they’re the right partner for you?
What do you need?
The first thing to do is work out how much or how little you want to outsource.
> Do you want your outsourcing partner to provide a complete start to finish service?
This could include everything from processing client money, posting contractor invoices, making all payments, registering tenant deposits, collecting and paying over to HMRC on your behalf to any non-resident landlord tax.
> Do you want to keep some of it ‘in house’?
For example, you may be happy to continue to do things like posting contractor invoices and registering tenant deposits yourself.
So now you know WHAT you want done, who’s going to do it?
You need to put the time and effort in to find out about your potential outsourcing partner. Time spent now will pay off in the long term.
Do your research
Ask these questions and don’t sign up until you’re satisfied with the answers!
- How long has the company been doing client accounting for letting agents?
- What’s the background and industry experience of the directors, partners, and management team?
- Will there be a dedicated processor assigned to your account?
- Will they have a backup?
- Is the company a member of any recognised regulatory organisation (Propertymark, ICAEW, Property Ombudsman etc)?
- Does the company have professional indemnity insurance that covers theft and/or misappropriation of client funds?
- Is the company signed up with any of the recognised CMP scheme providers?
- Has the company got separate CMP cover in place?
- For referencing purposes can they give you contact details for clients who are similar to you?
- How long will the transition take and how will it be implemented and managed?
For owner/managed businesses the benefits of outsourcing to an experienced and client friendly company far outweigh the expense and burden of conducting the process in house.
Choose wisely, and outsourcing your client accounting could be one of the best business decisions you ever make.
The Letting Partnership
The Letting Partnership is an award-winning and nationally recognised client centric company. We are at the forefront of industry good practice, compliance, and professional standards.
With tailored service packages, using your software or our own, pay-as-you-go pricing and no hidden costs, whatever your size outsourcing your client accounting to The Letting Partnership could be the best business decision you ever make.
If you would like to know more about The Letting Partnership, or discuss the possibility of outsourcing, please call 01903 477918 or send us a message and we’ll get back to you.
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