By Stephen Hogg
At the Class Ignite 2024 event, I had the opportunity to attend a session by Kloud Connect’s CEO, Dan Beck, who spoke about metrics that matter to accounting firms. The session emphasised the importance of lead and lag metrics – predictive versus outcome-based measurements – that drive success. It got me thinking – are accounting firms really using all the tools at their disposal to their best advantage?
Does Offshoring Support These Metrics?
The right metrics – supported by an offshore team – can drive meaningful results for your firm:
Client Engagement
Regular client meetings (a lead metric) are critical to client satisfaction. With a dedicated offshore team managing back-office tasks, firms can focus more on client engagement and advisory work, improving long-term client retention (lag metric).
Increasing billable hours per FTE
Increasing billable hours per employee is essential for revenue growth. By offshoring routine tasks such as bookkeeping and compliance, your on-shore staff can focus on high-value work, driving operational efficiency and boosting revenue per FTE (lag metric).
Employee Performance & Engagement
By reducing the administrative burden on staff, outsourcing allows on-shore employees to focus on more meaningful work, improving satisfaction (lead metric) and reducing turnover (lag metric).
Compliance & Risk Management
Frequent internal audits ensure that compliance is maintained. Our offshore teams, trained in Australian regulations, can assist with these tasks, ensuring your firm stays compliant and avoids costly breaches.
From our interactions with accounting firms across Australia, it is evident that some of the most successful firms have dedicated offshore teams that account for 10-15% of their on-shore capacity. Strategic offshoring has enabled them to reduce overall cost, increased revenue per FTE and increased profit margins. With the accounting industry facing a shortage of qualified talent, our offshoring model helps firms meet their goals by providing access to a skilled workforce. Drop us a line to discuss how Solutions Centric can support your firm’s growth and profitability.