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Client Accounting - Risks and Rewards of Outsourcing

01 August 2022 851 Views
Client Accounting - Risks and Rewards of Outsourcing

The two main reasons that an agency decides to outsource are to reduce costs and to have the ability to focus on core business goals and planning. I am sure that amongst other things over the last few months, these two reasons have not been far from top of the list. The challenge can often be finding the solution.

When it comes to choosing an outsourcing company what can you do to make sure they’re the right partner for you?

Team up with the right company and they will deliver on the outsourcing industry’s promise of ‘Saving You Time and Money.’ Partner with the wrong one and you could lose a whole lot more than just money!

Choose the wrong outsourcing company and relationships with your landlords will certainly be damaged, employees will feel undermined and as a consequence your agency’s reputation will inevitably be tarnished.

So where do you start? The first thing to do is work out how much or how little you want to outsource.  

Using client accounting as an example:

Would you want your outsourcing partner to provide a complete start to finish service?

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.

Or

Would you be happy to continue to do things like posting contractor invoices and registering tenant deposits ‘in house’?

Right.  So now you know WHAT you want done, who’s going to do it?

You need to put the time and effort to find out about your potential outsourcing partner.

Do your homework.  Ask the 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 is an award-winning and nationally recognised client centric company The Letting Partnership is 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 please call 01903 477 900 or email sarah.davies@thelettingpartnership.co.uk.

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