By Analytix Editorial Team
Many small to mid-sized businesses struggle to balance performing critical operational tasks, such as accounting and bookkeeping, with functions essential to the core of their business. CPA firms are no different. Many of their own administrative functions that are necessary are also very time-consuming. These tasks often detract from the CPA firm being able to proactively focus on its business development activities.
For CPA firms, this also holds true for some of the more task oriented services that they deliver to their clients (such as bookkeeping). It also can prevent them from focusing on higher margin activities where they may not have enough skilled manpower to dedicate to these higher level projects.
Outsourcing some of these functions can help CPA firms increase their productivity by allowing them to choose where their efforts are spent by delegating more mundane tasks to an outsource provider. They can also choose to draw on more skilled services that the outsource provider offers which allows the CPA firm to take on incremental business without the cost of a permanent hire. Following are several ways in which a CPA firm can benefit from outsourcing:
Outsourcing provides CPA firms with a scalable solution to augment the current staff especially during peak periods. During the tax season, firms can leverage the additional manpower giving them the flexibility to take on work when there is an influx in demand for key services. Outsourcing provides the advantage of being able to scale back these resources once that peak period is over.
Partnering with a reputable outsourcing company provides CPA firms with a staff of skilled accounting professionals who can service specific functions as required. The hassle of hiring new people is reduced for the CPA firm especially when sourcing and retaining talent is already a huge challenge for such firms.
Similarly, some clients might need CFO-level expertise in solving problems especially during quarterly or year-end reporting of finances. To sustain a full-time CFO annually is tough for CPA firms but specialized outsourcing providers can provide timely solutions on an “as needed” basis.
Service Offering Extensions
Outsourcing key services can allow CPA firms to offer an extension of services to generate revenue. This leads to business growth but eliminates substantial investment in the product development. CPA firms outsourcing their core services can offer accounting systems integration as an extension to their own offerings. With skilled expertise and distribution systems in place, CPA firms do not need to hire staff to define delivery processes and support the ancillary services.
Cost effectiveness is a major criteria when an outsourcing vendor can deliver core administrative functions as accurately as the CPA firm did in-house. This allows a business to refocus attention on expanding revenue generating activities. Efficiency directly affects profitability and increased productivity. Leveraging skilled professionals to execute tasks when required is a huge plus.
Access to Technology
Additionally, working with outsourcing providers can also provide access to technology that can increase productivity. Making use of cloud based technologies allows real time access that help to make the process seamless between clients, CPA firm, outsourcing provider. In addition, the outsourcing providers rely on the most updated technology, which the CPA firm would have access to.
Before choosing an outsourcing provider, firms should evaluate their accounting specialties, and their domain experience. Assess their charges and the rates for different services along with their reputation in the market. In addition, investigate the accounting software used by the provider and make certain that any shared accounting data is secure.
Analytix Solutions offers customized accounting and bookkeeping solutions for CPA firms, along with customized automation services and software development. Learn more about how we can help your practice by contacting us at 781-503-9004 or at [email protected].