Outsourced Accounting: 3 Ultimate Reasons Why It’s Apt for CPAs?

CPAs, or Certified Public Accountants, are well-trained accounting professionals. So, why would they need outsourced accounting is a pertinent question!

Interestingly, the trend is on an uptick – and seems like one of the most striking shifts happening in the realm of CPA practice.

Markedly, surmounting workloads, scant in-house resources, sloppy workflows, and functional inefficiencies are some common pressing problems accounting firms are facing today. And many are finding outsourcing a pragmatic way out!

The article, however, delves into the most critical reasons and triggers when it becomes super imperative for CPAs to outsource their client accounting function.

Why Should CPAs Consider Outsourced Accounting? (3 Ultimate Reasons)

#1 Tackle Accounting Talent Shortage with Accounting Outsourcing 

Many CPA firms are having trouble recruiting and retaining qualified accounting staff. The talent crisis in the US CPA industry is getting worse, as per reports, for instance.

With delays in project completions and client service going downhill, the prospects of signing in new clients may also turn bleak for some practices.

Seeing this outsourcing can be effective solution to staffing woes.  You can leverage the resources of an external partner to uplift your service delivery and meet client expectations when you outsource.

There’re two ways to go about it: delegate your entire accounting department or use selective services to support internal teams. Either way, it allows you (and your in-house team) to concentrate on more valuable tasks and take on high-value clients.

In a nutshell, an external accounting service provider brings in:

• A pool of skilled accountants & specialists
• Know-how of CPA industry standards & regulations
• Accuracy and seamless processes
• Improved productivity & cost efficiency

You may also like: Accounting Talent Shortage: How Outsourcing Can Help US Businesses Counter the Crisis

#2 Outsourced Accounting Can Help Align with Ever-Changing Compliance Norms

The finance industry is very significant and complex – and governments like to keep a close eye on its functioning. Reforms and regulatory changes are unleashed from time to time, which keeps CPA practitioners on their toes.

As your practice must abide by all existing laws and regulations, you can entrust your service provider to handle compliance when outsourcing your accounting operations.

With the service provider taking care of the matter, you need not bury yourself in the compliance management process anymore. Abreast of regulatory updates, they can handle the nitty-gritty of compliance requirements effectively.

With the burden off your mind, you can look into other more important aspects of your practice – client handling and client service, for example. Importantly, improved compliance also means a good reputation – so, you can approach your clients more confidently.

In short, accounting outsourcing can help CPAs boost compliance: 

• Reputed service providers are up-to-date with regulatory changes
• Leverage the expertise of compliance specialists
• Leverage the latest compliance management technology
• Get regular compliance management assistance

#3 Clients’ Accounting Needs May Evolve; Outsource Accounting to Brace Up! 

You might have individuals, small businesses, large enterprises, governments or non-profits on your client list but remember their accounting requirements can evolve with time. They might as well seek advisory services at some point. Consultation for managing financial risk in uncertain times or expansion phase for instance. Besides, the other needs may also increase or decrease over time.

A good CPA should be agile enough to adapt to their client’s needs. But just imagine how cumbersome resource re-allocations and rearrangements can be!

Thankfully, the outsourced accounting team allows you to be flexible without disrupting your internal operations. Choose which areas of the internal accounting department you want to outsource and for how long?

This way you’ll not only be able to serve your client better but also improve relationships and consolidate business with them. Of course, one can’t also risk losing clients if they’re valuable.

In brief, outsourced accounting can help CPAs align with clients evolving needs: 

• Outsource end-to-end or partly as per project requirements
• Free yourself to provide value-added services to clients
• You can leverage short-term outsourcing for specific projects
• Adapt to client’s shifting needs without in-house disruptions

You may also like: The Need of Outsourced Bookkeeping Companies for CPA Firms

Outsourcing Can Also Support CPAs’ Growth

With the demand for CPA services amplifying, there’s ample scope for growth. However, every CPA practice that wants to scale up would like to use its resources and time wisely to ensure success.

Therefore, a firm undergoing a growth spurt or planning expansion should consider using the services of an accounting outsourcing company to back it up.

No more bound by non-core activities, your in-house resources will also be free to assist you. And you’ll be able to focus entirely on the expansion efforts.

Moreover, the outsourced accounting provider can take in increased workloads as the business expands. There’ll be no need for additional in-house hiring or infrastructure investments at your end as such.

Conclusion

Many CPAs choose to outsource their accounting processes, primarily to tap into the service provider’s diversified pool of experts and up-to-date infrastructure, which helps improve their productivity and cost-efficiency.

Faster service delivery is another key performance criterion that enables them to gain a competitive edge. In the process, CPA firm owners are also able to address pressing issues such as talent shortages, compliance updates, and ever-evolving client requirements. What’s more, it also helps ensure their peace of mind.

Is your CPA firm facing any such issues or considering outsourcing anyway? We at Centelli can help if you’re operating in the USA, the UK, or Europe.

Take advantage of our expert outsourced accounting services to take your client service delivery and experience a notch above. Get in touch today!

You may visit this page for more details on our bespoke accounting services. Here’s a snapshot: