With the modern business landscape evolving at a rapid pace, CPA firms have become essential providers of so much more than basic accounting services. No longer seen as number crunchers who help businesses prepare their tax returns, they have become providers of a range of comprehensive accounting services, critical to many of their client’s successes.
From providing expert advice to individuals and business owners with respect to their finances and taxes, to auditing, CPAs have expanded their services, and as a result, expanded their workloads. While this may be a good thing for some CPA firms, it can also prove to be quite a burden for them, as they struggle to keep up with demand
In light of this, many CPA firms are choosing outsourced bookkeeping for cpas in order to streamline their in-house processes, keep overheads to a minimum, and stay one step ahead (or at the very least, abreast) of their competitors.
Below are 8 tasks commonly outsourced by CPA firms, along with their reasons for doing so:
- Tax preparation
With tax season notorious for being hectic, CPA firms often struggle to meet demand at this time of year; finding themselves unable to keep up with tax prep tasks for their clients such as the collating of financial data, complying with the latest tax regulations, and filing tax returns.
Outsourcing prevents them from having to hire temporary employees to help cope with the workload, while never compromising on the quality of work they provide for their clients.
2. Bookkeeping
Bookkeeping is an essential service, providing as it does the day-to-day recording of all manner of financial transactions, including sales, receipts, purchase and payments, but it can be incredibly time consuming and mundane. Outsourcing enables CPA firms to shift their focus to tasks that provide them with more income, while knowing that the everyday tasks are being carried out efficiently and accurately.
3. Payroll processing
Payroll can never be neglected, and should always be accurate, but with its complexities and high need for precision, CPA firms may find themselves unable to calculate wages, deduct taxes, and guarantee employees are paid on time, when they’re bogged down with their own work, along with the complications of payroll. Outsourcing provides a convenient and cost-effective solution to these woes, and ensures employees are paid properly, every month.
4. Data entry
While time consuming and mundane, the inputting of financial data into software or digital formats is essential for any accounting firm. Outsourcing this task enables accounting professionals to spend their time on more valuable aspects of their business, while still keeping up with demand.
5. Audit support
Typically complex and longwinded, there are many facets to the audit process, and those simpler but time consuming elements of it – such as data gathering and initial analysis – can be outsourced to relieve the burden and speed up the process.
6. Financial analysis and reporting
The analysis of a company’s financial data and creation of financial reports, requires knowledge that is specialized, and can involve a lot of time and labor. With expert outsourced accountants who have access to all the latest tools and methods, you can benefit from their expert insights, and give your stakeholders a clearer, more accurate picture of the financial health of the company.
7. IT services and support
Accounting software must be maintained and updated regularly, cybersecurity must be reviewed periodically, and tech support must be provided. With help from outsourced service providers, all of these often costly needs can be met by an accounting firm without the need to spend money on a full-time team of techies.
8. Customer support
When times are busy, such as during tax season, accountants often find themselves overwhelmed with client queries. Having an outsourcing tax return preparation provider handle such queries efficiently and with professionalism, ensures client satisfaction at all times.
If your accounting firm is struggling to cope with any of the tasks listed above, or a combination of them, it may be time to explore your outsourcing options.
