Top five reasons to outsource client accounting

Responsibilities of a professional agent include managing client funds in accordance with industry regulations. Non-compliance can lead to severe repercussions, including fines and legal action. To ensure compliance is adhered to an increasing number of agents opt for specialised Client Accounting Service Providers (CASPs) to handle this crucial aspect of their business.

Propertymark Industry Supplier, The Letting Partnership defines the advantages of entrusting client accounting to a CASP and the compelling reasons to consider this option.

Expertise and Experience

Navigating the intricacies of client accounting demands precision and meticulousness. CASPs are seasoned professionals, with specialised knowledge and training and are adept at managing client funds. They ensure adherence to industry standards and regulations and handle all aspects of client accounting, from paying landlords and settling contractor invoices to registering deposits and reconciling accounts.

Compliance and Risk Management

Armed with a thorough understanding of the regulatory environment, CASPs manage funds with a keen eye on risk. They implement internal controls and can identify potential issues early. They also maintain accurate and up-to-date financial records so agents no longer need to spend hours reconciling accounts and can focus on core operations without trepidation.

Time and Cost-Efficiency

Outsourcing client accounting not only slashes costs by removing the need for additional staff or expensive software but also furnishes a tailored, cost-effective solution. This liberation from overhead expenses fosters increased profitability while freeing up time and resources. Moreover, concerns regarding staff contingencies such as sickness or turnover become irrelevant with outsourcing.

By freeing up time from routine accounting tasks, agents can dedicate energy to business growth. They can explore new properties, expand their portfolio, and devise long-term strategies for success.

Enhanced client satisfaction

Outsourcing client accounting to a reputable CASP can significantly enhance customer service for both landlords and tenants:

• Landlords receive their rental income promptly
• Tenants benefit from streamlined processes, such as smooth rent collection and swift deposit handling
• Agents have more time, allowing them to prioritise customer interactions and focus on client relationships
• Enhanced transparency builds confidence among landlords and tenants
• Compliance minimises the risk of disputes or legal issues
• When queries arise, agents can provide reliable financial information promptly

Scalability

As an agent’s portfolio grows, so does the volume of financial transactions. To continue to meet these mounting demands in-house it may be necessary to hire additional staff, invest in new software, or upgrade infrastructure. Outsourcing the client accounting to a CASP allows seamless scalability without having to worry about these challenges.

What makes The Letting Partnership the CASP of choice

A specialist CASP providing outsourced client accounting services and support to agents throughout the UK, The Letting Partnership’s USP is that they are powered by people, not technology. They are also able to open a designated ring-fenced client account on behalf of the agent and are one of the few CASPs accepted by CMP providers.

Member agents are looked after by a small, dedicated team who specialise in the agent’s software and work directly on it, so no need for change or upheaval. Agents will be on first-name terms with their account managers, who are on hand to help with any queries that arise.

Winners of The Negotiator ‘Supplier of the Year 2022’, The Letting Partnership also received the prestigious Queen’s Award for Innovation for their Client Money HealthCheck service.

If you are experiencing problems opening or keeping a client account, or considering outsourcing client accounting then give The Letting Partnership a call at 01903 477903 or visit their website.