5 Reasons Why Accountants and CPA Firms Should Outsource Accounting & Bookkeeping
The use of outsourced bookkeeping and accounting has increased as a troubleshooter for small and medium-sized enterprises in recent years. But this also applies to accountants who run their own CPA firms. Many CPA and accounting firms now turn to outsourcing as a pragmatic course to cut costs and get around the difficulties of building and overseeing in-house teams.
The ability and expertise of an accounting and finance company’s accountants is seen as one of its most valuable assets. India is currently one of the major regions for outsourcing accounts, as we underlined in an earlier blog. With skilled resources and lower labour costs, India remains a top destination for CPA and accounting businesses to outsource their bookkeeping and accounting to.
In this blog, we go over 4 key reasons why accountants and accounting firms need to outsource their accounts to accounting outsourcing companies.
Minimise Overhead Costs
By contracting with Indian bookkeeping companies, CPAs and accounting organisations can considerably save costs. CPA firms can cut costs on hiring, training, and offering benefits to employees through outsourcing. Furthermore, outsourcing companies frequently offer a flat fee or pay-as-you-go charging model, which makes it simpler for CPA firms to plan their budgets and monitor expenses. As opposed to engaging internal people to perform the financial function, hiring an outsourced accounting firm is frequently more affordable and cost-effective.
By outsourcing, you can avoid the overhead expenses associated with recruiting employees, such as paid time off (PTO), retirement, health insurance, workers’ compensation, vacation, and day offs. Also, having the experience of a full team in comparison to just one or more internal people has benefits such as lowering the risk of non-compliance and inaccuracies in keeping accounts.
Improve Profitability
By lowering overhead costs, improving efficiency, and expanding revenue streams, accounting outsourcing can improve the financial performance of CPA firms. Accounting outsourcing can give CPA companies access to specialised knowledge and enable them to provide a wider range of services. As a result, CPA firms may have more options to generate income, draw in new clients, and upsell current clients on additional services.
By outsourcing accounting services, businesses can free up time and resources that can then be used to provide other services like tax reporting and adherence, corporate finance, and consultancy services. Additionally, outsourcing companies could be knowledgeable in fields that the CPA company is not, including overseas tax compliance or financial forensics, enabling them to offer their clients a more complete service.
Upgrade to Automated Accounting
Research suggests that CPA firms frequently struggle to incorporate the latest tech into their workflows, citing tight budgets that don’t allow them the financial bandwidth to accommodate tech advancements. Leading accounting outsourcing firms enable CPAs to advance technologically without materially increasing prices. Further, latest leading accounting software including the likes of Sage, BrightPay, Xero, and Iris among others, are educated to accountants by Indian accounts outsourcing service providers.
It is simpler for CPAs and accountants to integrate new technologies into their operations when their offshore outsourcing crew is technologically savvy. By doing this, accountants and accountancy firms can optimise automation of key procedures while minimising human labour, eliminating the possibility of error, and increasing productivity.
Prioritise Core Accounting Services
Accounting outsourcing enables CPA firms to concentrate on their core services by lowering the time and resources required to manage other accounting services internally. Complex and time-consuming activities might be delegated by CPA firms to accounting experts who are qualified to manage them effectively.
CPA firms can concentrate on their essential services, such as tax planning, auditing, and consulting, by outsourcing these complicated accounting activities. Companies may devote more time and money to enhancing their core services, which will lead to higher-quality offerings and more satisfied clients. This may result in more repeat business and referrals, which will ultimately aid in the expansion of your accountancy firm.
Reduce Fraud with Better Data Security
Many small and medium-sized businesses face accounting fraud with just one person keeping their books. Outsourcing your bookkeeping to India gives you total control over the levels of access and permissions the staff has to the cloud storage. All of your transactions are encoded by the accounting software they use, which includes highly secure encryption. With a robust legal system, India is highly dedicated to defending the intellectual property rights of foreign corporations.
Critical financial data is protected from unauthorized access thanks to the strict data privacy and security rules that apply to Indian organisations. Using India’s outsourced accounting solutions, you have more internal controls because there are more eyeballs checking your transaction processing and reports. Even though fraud can never be completely ruled out, a committed staff with specialised knowledge of best accounting practices will be much more likely to identify a discrepancy than a single person who is likely overworked and overwhelmed.
Did You Know?
- Over 60% of CPA firms now outsource at least some of their accounting and bookkeeping services. (Source: American Institute of Certified Public Accountants, 2023 Accounting and Tax Firm Outsourcing Survey)
- CPA firms that outsource accounting and bookkeeping services save an average of 20% on their back-office costs. (Source: Association of International Certified Professional Accountants, 2023 Global Accounting and Tax Outsourcing Survey)
- CPA firms that outsource accounting and bookkeeping services are able to grow their revenue faster than those that don’t. (Source: Deloitte, 2023 Accounting and Tax Firm Outlook Survey)
- CPA firms that outsource accounting and bookkeeping services are able to provide their clients with a wider range of services. (Source: KPMG, 2023 Global Accounting and Tax Technology Trends Survey)
- CPA firms that outsource accounting and bookkeeping services are able to improve their client satisfaction scores. (Source: PwC, 2023 Global Economic Crime Survey)
- Over 70% of CPA firms believe that outsourcing accounting and bookkeeping services is essential to their future success. (Source: Association of Certified Fraud Examiners, 2023 Accounting and Tax Outsourcing Survey)
Conclusion
Your outsourced accounting service is meant to reinvent your core accounting capabilities and elevate your workforce. India’s bookkeeping outsourcing services use the most recent bookkeeping software that is smoothly upgradeable without any legacy difficulties and have high-level security procedures in place. There are also no language obstacles because English is a common language among Indians. There are several benefits to working with Indian-based outsourced bookkeeping services, from cost savings, effectiveness, and quality to tech assistance and strict data security protocols.
If you are an accountant and run a CPA firm, then remember, it is simply not just a matter of keeping your accounting up to date; it’s also about giving you a foundation upon which to increase revenue, enhance cash flow, and expand your company. That is why, in order to effectively grow their business, accountants and small to mid-sized CPA businesses must consider outsourcing accounting and bookkeeping services.
