It should not come to all as a shock or a surprise to know that accounting was one of the first outsourcing practices and still is amongst the most popular one to be outsourced. It is all about the thought process and the hunger to progress. Just think how much time the daily non-productive tasks eat up of your costly resources; instead, if they address the core activities of your CPA firm, they would add up to much of revenue for the firm. Also, it would give ample time and mindfulness to run the firm more efficiently.
The sad part is, still there are CPA firms who are looking out for reasons to outsource accounting and bookkeeping, but it’s time they stop.
1. Baby boomers are about to retire
CPA profession is ageing and so is the accountants’ ageing too. It’s not only the clocks that are ticking, the countdown for baby boomer CAs on the verge to retire has begun. Millennial accountants with fresh perspectives and with that flair to work innovatively are ready to take over, and there is nothing wrong if they do so. Sad that baby boomers will be retiring and leaving with decades of experience that they have, however; keeping pace with latest accounting standards & bookkeeping norms, and compliance challenges in concurrent market dynamics are something that these millennials have in their DNA. Having such experienced and expert millennials onboard, works to the advantage of outsourcing solution providers, and ultimately to the benefit of CPA firms as well.
2. Tried & tested rules are to be followed – always
It has been more than two decades now that outsourcing solutions have proved their worth of being cost effective and efficient. So why not outsource the routine and non-core activities to millennials? They are sharp and apt at adhering to compliances, and enable CPA firms to focus more on work that their clients need and acknowledge, work that has higher billing rates, and does some sort of value addition to their accounting firm’s business.
3. Just-in-time staffing mostly leads to increased employee turnover ratio
Several CPA firms ramp up their staffing during tax seasons and would not hire any other time of the year. This would compel them to overwork their key staff during peak seasons, leading to increased employee turnover ratio and burnout. Instead of hiring only for tax seasons, outsourcing accounting and bookkeeping solution providers in India will take off the staffing responsibilities off your head.
Several leading CPA firms across USA & Australia regularly offshore their data-intensive work round the year to India. They hire accountants and bookkeepers in India well in advance of the tax seasons; get them acquainted to the working and this is how they manage the surge. Best accounting and bookkeeping solution providers in India, will initially start with personal tax and then gradually will move on to deliver Accounting, Bookkeeping, Payroll and various other financial services.
4. Outsourcing processes are entirely digital
It is up to the CPA firm as to how they accept this change, as the fact remains that upon outsourcing it usually happens that it compels the CPA firm to assess and modify their processes that will be implemented across the accounting practice of their firm. For most of the CPA firms who have been outsourcing their accounting, bookkeeping and payrolls; it has worked out to be one of those value addition by solution providers, as centralized processes help these firms go a long way.
5. CPA firms can take on more clients without additional investments
Outsourcing non-core or routine tasks will help CPA firms to have time to acquire new clients and expand the business. Upon doing it they will not invite any additional cost of moving on to new and bigger premises, add workstations, expert and experienced accountants and bookkeeping staff, neither do they have to worry about the infrastructure advancements. The entire outsourcing setup turns out to be an added advantage for CPA firms.
6. Benefit of different time zone
India, ahead of all in delivering outsourcing solutions, is ahead of America by 10 hours as well. So CPA firms can send the work overnight and can expect appropriate solution the next morning itself. Now that is called convenience – isn’t it? There is no need to elaborate its benefits across accounting, bookkeeping, taxation and overall financial services; the CPA firms’ are well informed about all of them.
7. Finally, it is the cost which matters
Outsourcing accounting functions would cost CPA firms nearly half of what they incur doing it with in-house teams, i.e., US$20 to US$25 an hour as against US$10 to US$12 for outsourced solutions. And this is not all; the CPA firms also have the advantage of avoiding hidden costs of payroll taxes, vacations, sick time, benefits, space and equipment costs.
Knowing how to outsource accounting and bookkeeping solution providers work, and how your needs will be managed, is a good thing to know before you outsource. But considering their successful track record of more than two decades; it’s high time that CPA firms stop looking out for reasons to outsource. Instead, they should immediately opt for continuous business improvement with flexibility, which in-house teams cannot guarantee.