The taxation process today is constantly changing with recruiting and retaining personnel evolving simultaneously. The industry has grown to be fiercely competitive. In such scenarios, CPA firms are often overworked having to juggle several roles. So, it is imperative to work smarter to survive. There is a need to improve operational efficiency and productivity while retaining high-quality.
This requires the presence of highly competent accounting skills and expertise while staying updated with the latest accounting laws, standards, and regulations set by the authorities. In addition to this, offering a key differentiator that is of immense value keeps your client base loyal. Outsourcing helps you manage bookkeeping efficiently while shortening turnaround time.
Why should you consider outsourcing?
1. Reduced Costs
Outsourcing allows the firm to focus on business expansion strategies by removing rote accounting tasks. Further, outsourcing allows the firm to obtain high-quality services at a low operational cost. Outsourcing part of your CPA accounting services will require paying only for the accounting work, which is done by your outsourcing provider. In addition, this further eliminates the need to hire more part-time accountants or full-time CPAs to manage the workload. This will also remove the necessity for arranging training programs for the same.
2. Focus on core functions
According to the Deloitte 2016 Global Outsourcing Survey, Finance (36%) represents the highest future opportunities for outsourcing growth. Outsourcing frees up time and manpower that would otherwise be engaged in routine tasks to focus on business strategy. For instance, working on improving employee satisfaction leads to higher morale leading to employee retention. Working with the marketing team to understand the target demographic and changing expectations will help in bringing more clients and actively managing them.
With certain business processes outsourced, the backend operations can be seamlessly integrated with the front-end saving more time and eliminating communication lags.
Disruptive outsourcing in this digital landscape is about collaborating with industry partners globally to integrate services the firm cannot quickly build on its own to innovate, transform, propel growth, and get ahead of the competition.
Based on the volume and type of work, you can outsource the management of transaction entries, general ledger, accounts payable and receivable, and many other basic accounting tasks that are time-consuming and labor-intensive. This means during peak season, there is a larger workforce increasing your firm’s productivity without increasing headcount.
4. Improve service quality
Outsourcing helps meeting deadlines as the necessary resources to complete the accounting will be available at the disposal of your outsourcing partner. This allows personnel to focus on more critical tasks increasing turnaround time for financial statements and tax returns while delivering high-quality service.
Outsourcing makes keeping records of accounts and preparation of documents on a regular basis easier, thus year-end stress is minimized. This will ensure that the books are tax ready, saving more time during peak season.
Outsourcing to the Asia-Pacific region will help in significantly shortening the response time. With some countries being 10-12 hours ahead of the United States, tasks assigned at night can be done by the next morning.
5. Access to expert talent and knowledge
The AICPA estimates approximately 75% of its members will be eligible to retire by 2020, thus creating a drastic shortage of CPAs. This will lead to a shortage of particularly skilled workers or their availability at a very high cost. Outsourcing to developing countries enables access to a large number of highly skilled people who are experts in their field with a high degree of English proficiency. Outsourcing provides access to expert talent at a fraction of the cost.
6. Round the clock support
With a time difference of 10-12 hours, outsourcing accounting services to the Asia-Pacific region will allow you to offer 24*7 support. Having a team of highly skilled and qualified accountants providing round-the-clock support to your clients will make it easier to expand into the global market.
Technologies driving disruptive outsourcing
Cloud computing has made possible centralized, on-demand access to a shared pool of resources. It is now possible for networks, servers, storage, applications, and services to be swiftly equipped and delivered with minimal management effort or service provider interaction.
Robotic process automation (RPA)
RPA has shaved off time and effort by automating routine tasks that are time-consuming and labor-intensive. This consists of software that performs repetitive rules-based tasks delivering higher productivity, quality, and precision of process outcomes.
This improves the existing state of RPA through additional capabilities such as learning, judgment, and “reading” of unstructured text (e.g., handwriting, text, photographs, etc.). This helps in making the process more mobile, accessible, and seamless especially while looking to input data from handwritten forms or when visiting clients.
Looking for help in transforming your accounting firm? CPA Innovations is a one-stop solution when it comes to accounting and finance back-office services. We partner with accounting firms to help them enhance their productivity, efficiency, and profitability. With world-class processes, a highly qualified and experienced team, and robotic process automation, we are here for you every step of the way.
Please reach out to us today for your free consultation.