Amid greater expectations to maintain financial transparency and government compliance, most accounting firms juggle day-to-day responsibilities alongside technical and time-consuming tasks, such as finance, auditing, bookkeeping, accounting, tax preparation, and financial consulting. Trying to do more with fewer resources, most accounting firms struggle to manage their own finances while fulfilling those of their clients. Working hard to meet client expectations, CPA and accounting firms either lose track of their own accounting and bookkeeping or lose focus on business growth as the majority of their time and attention is spent on managing their own accounting tasks.
In either case, they end up struggling to cope up with growing work demands and client expectations. When they lose out focus on new business development opportunities, it negatively impacts business health, on the other hand, if accounting tasks are neglected; the firm’s financial health is at stake.
Hiring accountants and setting up an in-house team to handle the firm’s bookkeeping and accounting is a great idea to drive growth in an accounting firm, but it can be an expensive affair. For this reason, a lot of CPA firms are turning toward outsourcing as their preferred solution for accounting tasks.
Why Do Accounting Firms Outsource?
When busy accounting firms outsource a part of their bookkeeping and accounting services to a professional third-party accounting company, it can prove to be a smart step towards business growth. Let's take a look at the benefits of outsourcing accounting services for CPA and accounting firms:
Focus on Core Business Functions, Not Accounting
When you outsource part of your accounting services, you get more time to focus on your core business offerings that can help your business grow and achieve its goals. Sometimes, when your employees spend too much time on certain backend operations (non-productive), they get distracted and fail to give their best to other business-focused tasks.
A Time & Cost Saving Solution
Outsourcing basic and repetitive accounting tasks help accounting firms save both time and money. You no longer have to spend on hiring part-time accountants or full-time CPAs to manage such tasks. You also save on their training, leaves, wages, and other benefits. Your outsourcing provider can take care of a heavy workload at any given time, increasing your profit margins.
Leveraging Advanced Technology
Today’s outsourcing accounting companies are proficient in some of the latest and updated versions of accounting tools and technologies. On the other hand, the truth is most CPA firms don’t always have the time to learn and use dozens of different accounting software. By outsourcing accounting services, you get a chance to employ the most modern technological advances to ensure faster results while eliminating pricey errors.
You can easily scale up during business expansion when working with an accounting outsourcing company. Maintaining accurate records of even the most basic accounting tasks, such as accounts payable and receivable, general ledger, transaction entries takes a lot of time. During peak seasons, when your in-house team is already overburdened with work, you can get the advantage of a larger workforce and increased productivity by outsourcing such accounting tasks to dedicated resources offshore.
Meeting Compliance Requirements
One of the essentials for delivering growth in an accounting firm is staying up-to-date on all the latest accounting laws, standards, and regulations set by authorities. Outsourced accounting experts carefully monitor relevant laws and regulations to stay current on processes and are attuned to what is happening across the industry.
Don’t wait, stay ahead of the curve by choosing Virtual Employee to outsource finance & accounting services to India & save 70%. Outsourcing your financial department to VE can deliver benefits beyond cost-efficiency. We can cater to all your finance & accounting needs by providing relevant skills and the right technology in place alongside a dedicated team of experts without adding overhead costs associated with in-house hiring. We take care of all the time-consuming and labor-intensive accounting tasks, so you have more time to invest in operational and growth strategies.