For any CPA practice aspiring to achieve sustainable growth, attain scalable operations, and improve efficiency, delivering strategic value to its clients must be atop its priority list. In their endeavor to hit the bull’s eye on all three fronts, CPAs and practice owners seek new and innovative ways rather than the age-old method of “burning the midnight oil.”
In recent times, one method that has emerged as the preferred choice of CPAs looking to achieve sustained growth is – CPA outsourcing services. This strategic move not only allows businesses to focus on their core competencies but also provides access to a global talent pool, reduces operational costs, and enhances service quality. The CPA’s practices were a tad late in embracing the power of outsourcing; however, according to a recent study by Everest Group, the global multi-process Finance and Accounting Outsourcing (FAO) market is expected to grow at a steady rate of 11-13%.
With the global multi-process Finance and Accounting Outsourcing (FAO) market projected to grow at a steady rate of 11-13%, now is the opportune time for CPA practices to step into the world of outsourcing and gain an edge in the modern fast-paced and highly competitive business landscape. To facilitate your seamless transition into the outsourcing world, we have created this blog as a strategic roadmap for CPA practices contemplating outsourcing services. The blog is aimed at providing you with the best practices, insights and key considerations for setting up a successful outsourcing operation. So, if you are ready, let us get started.
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The Compelling Case for CPA Outsourcing Services
To convince anyone of anything, it is crucial to highlight the glaring benefits of the solution/service you are propagating. It’s the same with CPA outsourcing services. We understand that convincing the CPA fraternity of anything is nearly impossible without the apparent and obvious advantages.
Here, we have listed some of the most apparent benefits that CPA outsourcing services have to offer in our attempt to make a compelling case for CPA outsourcing services.
Specialized Services & Expertise
Offering niche services and expertise has always been the biggest highlight of outsourcing services providers, and it’s the same for CPA practices. Whether you want to expand your service portfolio by introducing niche offerings such as tax planning, CAAS, or consulting, a CPA outsourcing service provider can help you by offering expertise in those areas without breaking the bank on hiring or building in-house expertise.
Overhead Cost Optimization
Whether you are looking to start a new service or expand an existing one to a new geography, you incur overhead costs through hiring or building an in-house capability. But with a seasoned outsourcing service provider, you can easily save significant costs on those fronts and broaden your profit margins.
Scalability and Agility
Coping up with seasonal service demands such as tax preparation can be taxing metaphorically and literally. Outsourcing eradicates that with the ability to scale the services up or down as needed. Thus, if your client demands to keep fluctuating, you can efficiently manage them based on the requirements.
While these are some of the most appealing and convincing benefits of CPA outsourcing services, there are several others in the form of improved efficiency and service quality, which you will discover when you partner with one. And the subsequent section of the blog will help you find the one best suited to your CPA firm.
Identifying The Right CPA Outsourcing Service
Every CPA practice is different, and so are its needs and requirements from its outsourcing partner. When it comes to outsourcing, there is no one-size-fits-all formula. Thus, you need to carefully evaluate the services that you intend to outsource to identify the CPA outsourcing service best suited to you.
Here are some key considerations that you need to consider when scouting for a CPA outsourcing service –
Expertise and Experience
When it comes to outsourcing, experience and expertise mean a lot. Hence, you need to carefully inquire about the reputation, expertise, and service history of your service provider. This will help you evaluate the quality of their services and make it easy for you to check if they meet your standards or can deliver the expected service and quality.
Compliance and Quality Control (QC)
Accounting demands the highest standards for quality and compliance. This is why it is imperative for you to check the quality control process your service partner follows along with the industry standards and regulations they adhere to. You will want to ensure that your outsourcing partner adheres to rules set by the AICPA and state boards of accountancy.
Data Protection and Confidentiality
CPAs handle clients’ susceptible information. Hence, when you decide to outsource some part of your operations, you must ensure that your outsourcing partner follows the expected data security measures, such as data encryption and access controls, and is compliant with global data privacy and regulation laws, such as GDPR and CCPA.
Transparent and Open Communication Channels
Outsourcing will require you to work with teams in other parts of the globe; thus, communication is vital for the success of the entire setup. You must make sure that you establish open and transparent communication channels for collaborating with your team. This will help you address any queries they might have and set clear expectations from both sides.
Cultural Compatibility
Working with global teams requires you to adapt your global team’s culture as they embrace yours. You must ensure that your partner’s work ethic, values, and company culture align with your team’s principles and goals.
Setting Up CPA Outsourcing Operation Effectively
Once you’ve found the right CPA outsourcing service provider for your business requirements, it’s time to set up the operation for maximum ROI.
Here, we have listed some critical steps that you must take to get the maximum out of your outsourcing operation.
Establish Clear Roles and Responsibilities
Defining clear roles and responsibilities will help you collaborate seamlessly with the outsourcing teams. This will also help you clarify accountabilities for all the tasks/functions that you choose to outsource.
Define Robust Workflows and Processes
Outsourcing involves a lot of information exchange, including sensitive client and company information. Rest assured, we have robust workflows and processes in place for information exchange, timelines, and periodic reporting. This ensures consistent and efficient delivery and the utmost security of your data.
Conduct Timely Knowledge Transfer and Training
Both the internal and outsourcing teams will need some time to get used to the processes, requirements, and policies. Hence, make sure that both teams are given sufficient knowledge transfer and training.
Implement A Feedback Loop
Your feedback is crucial in ensuring that the outsourcing team’s performance is in line with expectations. We value your input and believe that a feedback loop will make this process easier and more effective and make you feel more involved.
Embrace The Future with CPA Outsourcing Services
To say that CPA outsourcing services are a strategic must-have for CPA firms will not be an overstatement. In the fast-paced professional services landscape, outsourcing has long helped businesses outgrow their competition; it is no different for CPA practices. By harnessing the power of CPA outsourcing services, CPA firms can improve their existing processes by streamlining them and making them more efficient, as well as expand their service offerings by introducing new services.
If you want to expand your CPA practices by partnering with a futuristic outsourcing service provider, write to us at [email protected], and we will have our experts reach out to you with a service bouquet tailored just for you. Outsourcing is your doorway to the future, it’s time you embrace it.
