Just because you’re a busy CPA, doesn’t mean that you won’t ever struggle to manage your own financial processes and reporting requirements, or face any other number of problems. But what should you do to keep the situation under control? Hire an accountant or a bookkeeper to help you? Or reduce your client list?
Both options can be extremely costly for CPAs, whereas outsourcing for CPA firms can solve the problem quickly, conveniently, and at a far lower cost than taking on new employees or striking clients off your list.
Below are 4 problems commonly experienced by CPAs which could easily be solved with outsourcing:
- Wasting of time
Although managing accounts is part of a CPAs role, the real money and opportunities for growth lie in marketing their services, and offering specialist advisory services. However, for smaller firms, much of their time is often spent entering data and maintaining records, tasks that are necessary, but which keep them from reaching their full potential.
Outsourcing bookkeeping and tax preparation to a third party, frees up a CPAs time to focus on higher value services.
2. Inability to invest in the latest technology
While all CPAs know that new technologies could be the solution to their concerns about growth and sustainability, most don’t have the funds available to invest in it.
By outsourcing some of your accounting and bookkeeping requirements, you can reap all the rewards of the latest advances in technology, without having to buy it, and integrate it into your own systems.
3. Increase in operational costs
Although having an in-house team means CPA firms can take on more clients, the costs typically associated with this can be incredibly high. From salaries (and salary rises, bonuses etc), benefits, and training, to software updates, and the latest equipment to keep your team comfortable and happy at work, having an in-house team might have its advantages, but the costs can be crippling.
However, by working with an outsourced service provider, you gain access to an entire team of expert accountants, bookkeepers and tax professionals, without any of the overheads that can be so expensive for small CPA firms. In fact, CPA firms can save anything from 40% right up to 60% on their average operational costs, which is a whopping amount.
4. More errors and less efficiency
Particularly during busy times of the year like tax season, CPAs and their colleagues or employees may struggle to keep themselves up-to-date with the latest changes to tax laws and regulations, putting them at risk of damaging and costly fines and penalties.
Busy periods are the best time for CPAs to outsource (although the rewards can be reaped throughout the year), as handing over the reins to a skilled team of professionals, alleviates some of their burden, keeps results accurate for clients, and helps overworked CPAs avoid burnout.
There are few problems that outsourced bookkeeping for CPAs can’t solve, and if you’ve experienced any of the issues listed above, you might find it to be the ideal solution. Convenient, cost-effective, and such a simple way to keep everyone happy – from your CPA team to your clients – why not give it a go today?
