Post Date: 10-08-2022
10 Reasons why CPA firms must outsource the accounting & tax services
For small to medium-sized businesses maintaining up-to-date bookkeeping is the most important and time-consuming task of the day. Now imagine the time and efforts you will save if someone responsible takes this task off your hands at a minimal cost. This is how outsourcing accounting & tax services can help your business. It will not only free up your time so that you can focus on more crucial tasks but also bring flexibility and scalability to your business. If you are hesitant to outsource your bookkeeping services, read on as we talk about why CPA firms must outsource accounting & tax services
10 reasons for outsourcing accounting & tax services
In small and medium-sized businesses, outsourcing bookkeeping services is becoming a profitable trend. If you have not been able to make up your mind on whether to hop on this trend or not, here are 10 compelling reasons to help you make the decision.
To save up time and resourcesIf you are a small CPA firm, managing time and resources can be tricky. Hiring specialized staff for your accounting requirements can be an additional yearly expense, cutting down your profitability. In such a case, outsourcing accounting and tax services to an external agency bode well in terms of saving both time and resources.
To leverage the latest bookkeeping technology
Leveraging the latest technology can help CPA companies provide flawless and efficient services to their clients. But if you are a new accounting company, purchasing the latest book-keeping software might not be permissible in your budget. However, outsourcing the services can help you get access to the latest technologies without spending a lot.
To improve scalability
In today’s business, CPA firms require a comprehensive set of accounting services that many firms fail to provide without outsourcing. For a CPA firm, outsourcing accounting and tax services is the simplest way to expand services, increase the client pool, and boost revenue without hiring additional resources.
To eliminate the chances of fraud
Many small to medium-sized businesses have one person handling all the accounting services, resulting in higher chances of committing fraud. Mainly because it is easy to manipulate books or have a fake expense go unnoticed for a really long time with no additional supervision. With outsourcing, fraud can be reduced as bookkeepers have no direct interest in your business and hence they will not be bothered to commit fraud.
To have high-quality skills by your side
Poor quality of books can majorly affect all other accounting processes of your clients. To avoid such a scenario, you need to utilize professional services by outsourcing accounting and tax services. With outsourcing, you will have professionals by your side helping you deliver high-quality services to your clients.
To focus on more important tasks
If yours is a small accounting firm, we bet you have a small group of extremely talented professionals handling all the work. However, if that group is stuck in a pile of books, growing and improving business can become challenging. Delegating work to outsource companies can free up the time to focus on more important tasks.
To bring down overhead costs
Hiring an in-house bookkeeping staff comes with a lot of additional costs along with the salary such as lunch, laptop, accounting software, and other employment benefits as per the employment rules. Hiring an outsourced company can help you get rid of these overhead costs and pay only an agreed amount in a lump sum.
To eliminate errors
You never know when that one tiny accounting error can blow up in your face and create an unexpected situation. This is why you need to keep re-checking entries to ensure no error goes unnoticed. This could be a time-consuming task and keep your team occupied. Outsourcing services will help you eliminate errors as they fully check the books before handing them over to you.
To get help during an emergency
Emergencies do not notify in advance and can pose quite a challenge when met unexpectedly. If you have an in-house bookkeeper who is unable to complete the task due to health issues, the unavailability of one employee would impact your work deadlines. In such emergencies, outsourcing companies are of great help.
To alleviate stress during the pressure season
We don’t have to tell you how hectic tax season and year-end services can get for an accounting firm. Outsourcing accounting and tax services during this time can help reduce some stress off your in-house staff and continue providing quality service to clients.
In conclusion, outsourcing accounting & tax services can be one of the major steps that would enable you to make your business profitable. We have given you enough compelling reasons to make the decision of whether or not to outsource. But before you outsource your bookkeeping services, we suggest you to do your research and partner with an outsourcing agency that is well known for delivering high-quality, professional, cost-effective and focused work. Go through the testimonials, ask for references from your friends, and finally speak to the agency to understand how they can help you deliver higher accuracy and fast turnaround times.