Offering CPA firm’s a whole host of advantages, outsourced accounting is a strategy used by accounting professionals all over the world; helping them stay streamlined, ultra-efficient, and focused.

Giving them the ability to tackle some of the many accounting challenges they face throughout the year (as listed below), but in particular during tax season, tax outsourcing services can prove to be highly valuable to CPAs:

Challenge No.1

Staying updated with advances in technology

Technology has continued to advance at a rate of knots,

The rapid advancement of technology has transformed the accounting industry, making it essential for CPA firms to stay current with the latest tools and software. However, adopting and integrating new technologies can be a daunting task for many firms.

To address this challenge, CPA firms should invest in ongoing training programs for their employees, collaborate with technology experts, and leverage cloud-based solutions for enhanced efficiency and scalability.

Challenge No.2

Losing employees to retirement

Of course every employee has a right to retire, but when more and more qualified accounting professionals retire throughout the industry as a whole, it can pose significant challenges for CPA firms. Such a loss of experience, knowledge, and expertise can hit them hard, especially when there are so few suitable candidates to replace them, what with the ongoing talent shortage in the accounting profession.

Outsourcing is a versatile, convenient and efficient way to tackle this issue, and can provide CPA firms with a short or long term solution to staffing issues, while also saving them money, and enabling them to keep up with client demand.

Challenge No.3

Staying cost-effective

Even though outsourced accounting is a highly cost-effective strategy for CPA firms of all sizes, it’s still important to ensure that operational processes are optimized, areas of inefficiency are identified and acted upon, technology is leveraged, and automation is taken advantage of where applicable. Without this, it can be easy for costs to mount up, and a company to become unprofitable.

Challenge No.4

Meeting the expectations and demands of clients

Meeting the needs of clients is essential for a CPA firms success, and nowadays, their needs are evolving, too, with more and more seeking additional financial advisory services. To be able to do this, CPAs must focus on producing accurate, timely work, communicating regularly and appropriately with clients, and if using an outsourcing provider, they must be transparent about this.  

Challenge No.5

A lack of time

With intense workloads and strict deadlines, the pressures associated with tax season can cause CPA firms to be inefficient, as well as induce burnout, which can be incredibly debilitating for a firm. Outsourcing (even if you only do it during tax season) is a brilliant way to manage increased demand for services at certain times of the year, and ensure that every client’s needs are expertly met.

Challenge No.6

Data privacy and cybersecurity

The threat of data being stolen and misused looms over CPA firms all year round, but by working with outsourced accounting providers who maintain stringent cybersecurity protocols (including regular security audits and use of encryption technologies, among others), you and your clients can rest easy knowing that all sensitive data is being actively protected.

From outsourced accounting to outsourced bookkeeping for CPAs; use of these expert services can help CPA firms better deal with the many challenges they face every day in their profession. It can also save them money on the cost of hiring and training, and give them the opportunity to shift their focus to higher value services, to meet the increasingly complex needs of clients.