Earlier this month we spoke about the benefits of outsourcing for busy real estate agencies.
We discussed the benefits of outsourcing, busted some common myths and looked at the top 5 types of activities we see outsourced in our industry.
So the next question is, who do you outsource to?
Where do you find these companies or individuals?
How do you know they are top quality?
Outsourcing your Trust Accounting
Whilst there are many tasks you can outsource, for the sake of this blog, we are going to refer to outsourced Trust Accounting.
Just like when you bring on a new hire, you never really know what you are going to get until you get started.
Some work out. Others do not.
But we can give you our best pointers to ensure you find the right Trust Accounting outsourcing option for your agency.
Local vs Offshore
Five years ago, if you mentioned outsourcing, your mind may have gone straight to cheaper, offshore options.
Sure, offshore outsourcing has its place. It may be beneficial to some companies for certain tasks. However, it is not for us and we do not recommend it.
Here’s why.
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On the spot communication
Trust Accounting sometimes requires on the spot communication. When dealing with offshore providers, the time difference can play real havoc with your operations and response to crucial time-relevant issues. Working with a local agency in your timezone means on the spot clarification and resolution of problems.
If you are anything like us, once we see an issue, we want instant rectification.
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Experience
Are the offshore Trust Accounting providers experienced in Australian laws and regulations?
Do they have the experience that a local provider has? be sure to check this is priority #1.
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Privacy
Taking your Trust Accounting offshore does open up another aspect of privacy. Australian privacy laws are airtight – does your offshore provider’s country of origin offer the same?
Check this fact as this will be very important to your clients.
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Reliability
When outsourcing, you need your provider to be reliable, dependable and consistent.
If they cannot provide these top 3, look elsewhere.
The Cost of Outsourcing
Offshore outsourcing is known to be a cheaper option than going local.
But you get what you pay for.
We can tell you from past experience, the value of an experienced, local provider far outweighs their cost.
An experienced Trust Accounting provider:
- Is more efficient
- Gets it done the first time
- Makes fewer errors
- Save money in the long run
An inexperienced Trust Accounting provider:
- Makes more mistakes
- Spends more time rectifying mistakes
- Is less efficient
- Costs more in the long term
Once you look into the cost of Australian Trust Accounting providers and the service they can provide for the budget, they are worth their weight in gold.
Our final word of recommendation is to support local.
The country has had a rough time over the past 2-3 years – so we are always looking for ways to keep Australians in employment. To keep funds supporting local businesses and local families.
So, if you haven’t already outsourced some of your operations, it’s time to dip your toes in the water – you’ll realise it’s really not that chilly!
Jane Morgan is the Director of End of Month Angels, a consultancy firm specialising in Trust Accounting. Jane knows the legislative requirements of running a successful Real Estate office through her 25 years’ industry experience. Don’t trust just anyone with your trust accounting. Book an appointment with an End of Month Angel today.