Most CPAs and accounting firms are skeptical about the real impact of outsourced bookkeeping services on their business. What they frequently fail to consider is the higher cost of not having this accounting support.
When a firm is growing, its client base and tasks are limited. As a result, many CPAs and accounting firm owners manage their clients’ bookkeeping on their own. However, as your firm expands, you will encounter larger clients and more complex business processes. If you don’t keep up, you’ll find that your clients’ incomplete and unreliable books are expensive to maintain, and if delayed, it will lead to late payment penalties, missed earnings, and hindered business growth.
Online bookkeeping services have made it easier, simpler, and more accessible to outsource bookkeeping services. You get real-time access to your clients’ data with no time or location constraints. Let’s check out how outsourcing bookkeeping services can help your firm save money.
1. Fixed cost compared to various salaries and benefits
You don’t need to cover costly wages, insurance, paid leave, or other benefits once you outsource accounting services. You will have qualified professionals working for a fixed rate. If you hire an in-house bookkeeper, you may have to settle for lower-quality service or pay higher wages. Hiring an accounting professional from an outsourcing company is less expensive than hiring an in-house professional.
2. Save the cost of hiring, onboarding, and training
Employing a new accounting professional will require a lot of time, effort and cost of hiring, onboarding and training. You will also need to keep training them with advanced technologies. Although your firm may have an excellent in-house bookkeeping team, there is no guarantee that they will stay for long. Thus, it is preferable to rely on outsourcing bookkeeping companies that provide qualified staff ready to take on complex accounting work.
Save overhead expenses:
With outsourcing, you can save a lot of administrative expenses like rent, office space, utility costs, equipment costs, insurance, software installation, and many more. Many overhead expenses like these are eliminated by outsourcing bookkeeping to an outsourcing accounting company. These companies are well-equipped with the latest computers, utilities, offices, and other tools. As a result, outsourcing will significantly cut your overhead expenditures.
3. Pay only as per the requirement
Why pay for a full-time in-house accountant when you can outsource and simply pay for productive hours? There might be some period when you don’t need full-time bookkeeping support. During that period, the in-house accounting team passes the time waiting for incoming jobs and is not used to their full potential. It is more cost-effective to outsource your clients’ bookkeeping services to handle work as it comes in.
4. Tax benefits for your clients
Your outsourced bookkeeping team ensures that your clients’ monthly financial data is handled well by keeping in mind the year-end reporting needs. All the bookkeeping records will be up to date, complete and accurate. Your tax accountant can use it to prepare your clients’ taxes accurately and make sure that they get all tax benefits.
Apart from these, there are a lot of other benefits as well of outsourcing bookkeeping services for CPA and accounting firms. By outsourcing, you will be able to avoid unnecessary expenses and also handle your clients’ work efficiently with the help of outsourced professionals. They are constantly trained with the latest technology and updates and adhere to the zero-error principle. They also ensure exceptional turnaround time while managing clients’ accounts on behalf of your CPA or accounting firm.
With your outsourced bookkeeping professionals handling your clients’ bookkeeping and the internal team working on the core operations, you can expand your business without impacting the work function. Along with saving costs, outsourcing will also give you an opportunity to grow your business rapidly.