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

We all know CPAs—Certified Public Accountants—are highly skilled professionals. So, does outsourced accounting for CPAs make sense?

The simple answer: Yes!

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

Surmounting workloads, scant in-house resources, sloppy workflows, and functional inefficiencies are some common pressing problems CPA firms face. Many are finding outsourcing a pragmatic way out!

Dive in if you are a CPA firm owner and wondering if you should too!

Outsourced Accounting for CPAs: Top 3 Reasons Why It Works

So, let’s take a closer look at the key reasons and triggers driving CPAs to outsource their Client Accounting Services (CAS) tasks.

1. Tackle Accounting Talent Shortage via Outsourcing Route

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.

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

42% of Accountants Are Turning Away Clients Due to Staff Crunch, reveals CPA Trendlines Survey.

Seeing this, using a third-party accounting service can be an effective solution to staffing woes.  You can tap into the resources of an external service 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
• 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.

So, you can dedicate more time and energy to strategic activities like financial planning, business consulting, and developing specialized expertise.

This allows you to offer more comprehensive services, strengthen client relationships, and elevate your firm’s profile.

In a nutshell, an external service partner provides:

• Access to a large network of skilled accountants and bookkepers
• Improved productivity and significant cost savings

2. Accounting Outsourcing Can Help Align with Evolving Compliance

The finance and accounting industry is both significant and complex, with governments regularly introducing reforms and regulatory changes. This keeps CPA practitioners on their toes!

Maintaining high compliance is crucial—not just for avoiding violations but also for building client trust.

Notably, outsourced accounting services can ease compliance-related burdens by adhering to data privacy and accounting laws. However, this doesn’t eliminate the CPA’s oversight. They must establish regular reporting and monitoring for the outsourced team.

Stronger compliance also enhances your firm’s reputation, allowing you to engage clients with greater confidence.

By outsourcing the more routine aspects of compliance, you may also focus on the strategic implications of regulatory changes and advise your clients on how to adapt.

In short, reputed accounting services help CPAs boost compliance: 

• They have compliance specialists on board
• They stay abreast with regulatory updates
• They use advanced compliance management software
• Follow best CPA accounting compliance practices

3. Leverage Outsourced Accounting to Meet Client Changing Needs

You could have individuals, small businesses, large enterprises, governments, or nonprofits on your client list. Remember, their accounting requirements can evolve.

As mentioned earlier, reasons could be changes in operational scale or the regulatory environment!

Points in case:

• A client now also demands comprehensive financial reporting or cash flow forecasting.
• Another client may seek M&A accounting or other advisory services at some point.

Consultation for managing financial risk in uncertain times or during expansion phases is another example. Besides, needs can increase or decrease over time.

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

Thankfully, outsourcing allows you to be flexible without disrupting your internal operations. Choose which areas of the internal accounting department you want to delegate 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, a third-party accountants 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

Outsourced Accounting Can Fuel 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 drive your core business up!

Outsourced accounting enables a CPA firm to quickly align with client needs. You can strategically hire external specialists where internal teams lack niche expertise or are stretched too thin. It helps strengthen your competitive edge.

To summarize, outsourced accounting allows CPA firms to:

• Boost efficiency and cost-effectiveness with optimized accounting processes and reduced reliance on full-time staff
• Access expert guidance on advanced accounting systems through outsourced accounting firms
• Strengthen internal controls and compliance
• Maintain focus on core competencies within internal account departments
• Improve client service with streamlined accounting processes and accurate financial statements

And you’ll be able to focus entirely on efforts that help your journey from a small business to a bigger firm, and from low margins to a better bottom line.

Outsourced accounting solutions give you more room to do everything more efficiently. You can free up your in-house team to focus on high-value, specialized offerings like advisory services, tax planning, or audits. This allows you to improve margins.and scale up.

Outsourcing Can Elevate Client Experience

Many CPAs outsource their accounting and bookkeeping tasks to leverage a provider’s rich resource pool and robust infrastructure. But the benefits go far beyond that:

• Enables faster service delivery—a key factor that contributes to client experience and satisfaction
• Not just survive but thrive through busy tax season, grueling audits, and special projects

So, you can save time on outsourceable processes and focus more on building and nurturing long-term client relationships.

Efficient handling of pressing work schedules with timely deliveries will boost your clients’ confidence and win them for the long term.

Is your CPA firm facing staffing, workload, or operational cost challenges? Or do you believe outsourcing some of your accounting processes will be the right way going forward? Leverage Centelli’s ‘cost-effective’ outsourced accounting for CPAs services to make the best use of your resources, time, and effort. Get in touch today!

CPAs and Outsourced Accounting: Key Takeaway

By outsourcing accounting, CPAs can effectively address challenges like talent shortages, compliance, and ever-evolving client needs.

Above all, it helps secure peace of mind with a dedicated outsourced team handling all your day-to-day tasks, liberating you to enhance focus on high-value services and growth!

You may also like: Is ‘Offshore Accounting Services’ a Good Idea for My CPA Firm?

In addition to CAS back-office support, CPAs can also outsource their own firm’s accounting processes. Leveraging cost-efficient accounting solutions for their own needs can be a smart strategic move.