Significant Talent Shortage
What was the challenge?
ABC Ltd a mid-sized accountancy practice based in Manchester, had seen steady year-on-year growth driven by increased demand from SMEs, charities, and individual clients. Their portfolio spanned tax compliance, payroll processing, management accounting, and advisory services.
However, the firm faced a pressing talent shortage in the UK accounting labour market. Recruitment costs were rising, competition for qualified accountants was intense, and retention was increasingly difficult. As deadlines mounted, the shortage threatened service quality, client satisfaction, and the firm’s growth trajectory.
What was the solution?
The partners decided to explore outsourcing as a way to relieve pressure on their in-house team. After a rigorous selection process, they partnered with LedgerLink, a UK-focused outsourcing provider with a dedicated offshore team of ACCA-qualified accountants. LedgerLink offered not only technical expertise in UK tax and accounting but also operated a training academy that prepared offshore staff in UK GAAP, HMRC compliance rules, and Making Tax Digital (MTD) processes.
How does it work?
The rollout was carefully staged over two months:
- Integration – LedgerLink staff were introduced to Baker & Co’s cloud-based accounting platforms (Xero, QuickBooks, Sage) and were given secure remote access.
- Division of tasks – The offshore team took on payroll processing, tax return preparation, and routine bookkeeping for a defined set of clients.
- Quality control – UK-based managers reviewed all outputs, handled client communication, and managed escalations.
- Training & onboarding – LedgerLink trained its accountants to follow Baker & Co’s internal workflow templates, ensuring consistency and minimal disruption.
The partnership was built on a fixed monthly fee, calculated by skill level, workload volume, and task complexity. This arrangement provided cost savings of around 55% compared to hiring locally, without adding to office overheads.
What were the results?
The outsourcing strategy delivered measurable benefits within the first year:
- Increased productivity – Offshore staff handled 40% of compliance tasks, freeing up the UK team to focus on advisory work. Productivity rose 22%.
- Cost savings – The firm saved £150,000 annually compared to local hires, funds which were reinvested into marketing and client acquisition.
- Service quality – Client satisfaction surveys showed a 20% improvement in turnaround times and accuracy, leading to stronger client retention.
- Scalability – The firm could take on an additional 80 clients without needing new office space or local hires.
- Revenue growth – Baker & Co expanded its client base by 21%, adding an extra £480,000 in annual revenue.
- Employee retention – By offloading repetitive tasks, job satisfaction improved by 49% and staff turnover dropped significantly.
Conclusion
ABC Ltd initially turned to outsourcing as a stopgap for its talent shortage but found the partnership with LedgerLink became a cornerstone of its growth strategy. The seamless integration, robust quality controls, and substantial cost savings allowed the firm to increase capacity, grow revenue, and retain top talent in a highly competitive market.
The firm has since expanded the arrangement, with five full-time LedgerLink staff embedded in its operations, ensuring continued scalability and resilience in a challenging UK talent market.
