The accounting sector in the United States has faced numerous issues over the years, including massive staffing shortages, rising inflation, and ever-increasing competition.
Most CPA firms are turning to outsourced accounting services to tackle these issues and ensure a steady stream of revenue and profitability.
As a CPA, you might be thinking about when is the right time to go with it.
The decision to outsource accounting services is based on a variety of factors, including the CPA’s current workload and capacity, the complexity of the accounting tasks involved, and the availability of qualified providers in the area.
It may also be worthwhile to consider the potential cost savings and other benefits of outsourcing, such as access to specialized expertise and the latest technology.
The answer will vary depending on your circumstances, but there are a few key factors to consider:
When your workload is increasing
When your firm is struggling to keep up with the demands of accounting work, outsourcing some or all of the tasks can be a good way to improve efficiency and productivity.
It can be especially beneficial for CPAs or accounting firms that are experiencing growth and finding it difficult to manage the increased workload.
Outsourcing the additional workload to a reputable provider can also help to ensure that the accounting tasks are completed accurately and efficiently, without sacrificing quality.
Outsourcing the additional workload to a reputable outsource accounting company can also help to ensure that the accounting tasks are completed accurately and efficiently without sacrificing quality.
It can improve the overall efficiency and productivity of the business and allow you to serve your clients better.
Also, when you have a temporary increase in workload due to a surge in business or a one-time project, outsourcing some or all of the accounting tasks can be a good way to manage the additional workload without hiring additional staff.
It can help maintain the high level of service that clients expect while allowing you to focus on other areas of business.
When you need specialized expertise
When you need specialized expertise in a particular area of accounting, such as tax preparation or auditing, outsourcing some or all of the accounting tasks can be a good option.
It can allow you to access the expertise and knowledge of a provider who specializes in the specific area of accounting that is needed.
This can be especially beneficial for CPAs who do not have the time or resources to become experts in every area of accounting, or who need to provide specialized services to their clients.
Complex forms like Form 8801, Form 6251, Schedule D, Form 8903 and Form 8582 require a particular skill set and also take a lot of your time.
By outsourcing the accounting tasks to a provider who has expertise in the specific area that is needed, you can provide high-quality services to your clients without sacrificing your time and resources.
Outsourcing service providers also keep up with regulatory changes and train their resources with the latest technology that can be useful for you.
According to the 2022 Accounting Today Survey, CPA firms mainly struggle with integrating the latest technology and keeping up with regulatory change into their processes. It is also one of the top five issues accounting companies faced in 2022.
When you want to improve profitability
When you want to reduce overhead costs and improve profitability, outsourcing certain non-core functions can be a good option.
By outsourcing tasks such as bookkeeping, payroll, and tax preparation to a reputable provider, you can reduce your overhead costs and improve their profitability.
It can be especially beneficial for small or medium-sized accounting firms that may not have the resources to hire additional staff to handle non-core functions. By outsourcing these tasks, the CPA or accounting firm can focus on providing high-value services to their clients, such as strategic financial advice, without incurring the additional costs of hiring and training staff.
When you want free-up your time to expand your business
You can consider outsourcing when you are looking to free up time to focus on other business areas, such as providing strategic financial advice or expanding the client base.
By hiring an external provider to handle the accounting tasks, you can free up time and resources that can be used to focus on other areas of the business.
This can help to improve efficiency and productivity and allow you to provide higher-value services to your clients.
For example, a CPA who is able to focus on providing strategic financial advice to their clients can differentiate themselves from competitors and provide additional value to their clients.
Again, the decision to outsource accounting services will depend on the individual needs and circumstances of the CPA or accounting firm and should be carefully considered.
If you need to talk and discuss how our services can be of the best use to you, get in touch with us now.