QX LTD – Accountancy Outsourcing Company

QX LTD – Accountancy Outsourcing Company

This month we are profiling Accountancy Outsourcing Company QX LTD, who specialise in providing Management Accounting Services to AIM quoted companies. QX LTD is an ICAEW member company, based out of Skipton, North Yorkshire with state-of-the-art centres in Ahmedabad, India and a team of over 150 professionals. They currently provide their services to AIM listed companies ranging from under £10M to over £200M.

The QX management team is headed by Chris Robinson (ex-KPMG) and consists of qualified Chartered Accountants, all of whom are well versed in UK GAAP. QX’s management team has over 100 years of combined accounting experience. Their security and confidentiality policies are based on ISO 27001 security standard guidelines. Why does QX stand out from the crowd? They guarantee to help companies save at-least 50% on their total accounting expenditure which is a bold statement but certainly got our attention. However, rather than take over completely, QX ensures Financial Directors retain control of the process by providing a dedicated Indian team reporting directly into the FD. Through this structure, QX guarantees that ‘you lose the cost, not the control’. In fact, one of their clients’ operations managers (who was previously sceptical about outsourcing) commented after 1 month of roll out: ‘Why the hell didn’t we do this years ago?’.

Does it work - apparently so. HCL plc is one of their AIM quoted clients and is in the top 5 specialist health and care agencies in the UK with a turnover of £135 million. Offering recruitment and workforce solutions, over the last 5 years HCL plc has completed 13 acquisitions and were listed on AIM in 2005. With highly trained consultants based in the UK and worldwide, they offer international, national and regional searches for medical professionals including Doctors, Allied Health Professionals and Social Care Specialists, through their group of agencies. They have received several industry awards, including recognition of excellent quality of service.

The challenge given to QX Ltd was to find an integrated payroll and accounts management system at a lower cost. QX took on the challenge with a detailed analysis of the client’s functions, identifying 11 of the client’s group of companies for the outsourcing process at the first stage. A team of QX’s accountants, headed by a Chartered Accountant, were positioned at the client’s office. Over the first week, the team took a close look at the client’s payroll and basic accounting functions.

The team then went through on-the-job training for 2 weeks, understanding the processes and making observations. At the same time, QX and the client defined the service delivery parameters; setup the technology in place at both ends; and documented policies and agreements. At the end of the first 3 weeks, the payroll function was migrated to QX overnight, while the accounts team moved on to working at the client’s site for 2 more weeks. At the end of this period, the accounting function was also moved to QX in a phased manner, beginning with further training of the team in India.

Once all the functions had been migrated, QX shifted the focus to an ongoing review of the delivery. Performance metrics are now generated on a monthly basis and discussed between QX and client’s management. QX has since brought about several improvements in the processes, and all work continues to go through stringent quality review.

The benefits to HCL plc have been:
• Enormous cost savings (60% savings on annual accounting expenses).
• They now have a dedicated offshore team headed by a Chartered Accountant who reports to the Finance Director, thus giving him 100% control of the process.
• They have vastly improved quality and turnaround times.

When asked, FD commented “The quality of the payroll has exceeded all expectations and we are looking forward to even further progress with QX. There has been a very positive response from all areas of our business toward the QX team and the quality of their work."

QX go on to work with other private and quoted companies and we see great value in the services they can offer. If you are interested in contacting them, call Krunal Desai on 0870 803 1033 or email him at [email protected]. You can also find out more at www.qxltd.com

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