With the transformative changes reshaping the accounting landscape, the role of modern CPAs is evolving, too. Gone are the days of CPAs being number crunchers. Modern CPAs are rapidly shifting away from delivering compliance-focused tasks to providing value-driven advisory services for their clients. As a CPA firm owner, this presents an incredible growth opportunity for both solo CPAs and CPA firms. However, if you are looking to expand your services portfolio and offer value-driven services to your clients, outsource client accounting services (CAS) is just the strategic decision you need. And with outsourcing, offering Client Accounting Services as part of your service offerings has never been easier.
In this blog, we will take a closer look at the undeniable benefits of outsourcing CAS for CPA firms and how it can help you achieve advisory excellence while strengthening your client relationships. We will also share five signs that your CPA firm needs to outsource CAS. After all, knowing when to outsource CAS can be the difference between sustained growth and stagnation. So, let’s get started.
Client Accounting Services (CAS) - What is it and Why Does it matter?
For CPA firms, Client Accounting Services (CAS) encompasses a bouquet of outsourced accounting solutions, including bookkeeping, payroll, financial reporting, and advisory services. By offering CAS, CPA firms gain the ability to provide comprehensive accounting and bookkeeping support to their clients, enabling them to make informed business decisions while freeing up internal resources to focus on higher-value tasks. Outsourcing CAS also enables CPA forms to effectively manage their clients’ daily, monthly, or annual financial health and overall accounting operations.
The bouquet of CAS services include:
- Bookkeeping and payroll
- Accounts payable and receivable
- Financial reporting and budgeting
- Cloud-based accounting and technology integration
- Controller and CFO advisory functions
It’s worth mentioning that CAS is one of the fastest-growing service lines in the accounting world.Â
Outsource Client Accounting Service allows CPA firms to:
- Access specialized expertise and technology
- Improve service delivery and client satisfaction
- Reduce operational costs and risks
- Scale services as client needs to evolve
1. Overwhelming Workload and Missed Deadlines
CPA firms often find themselves juggling multiple tasks, burning the midnight oil to meet deadlines, and, at times, struggling to meet reporting and tax deadlines. All these are clear signs that your in-house teams are stretched too thin. By juggling multiple responsibilities and tasks simultaneously, teams run the risk of committing unwanted errors and diminishing the quality of client service. However, all of it can be taken care of by outsourcing CAS. The outsourced CAS provider frees your team from all the burden and allows them to focus on core competencies and strategic initiatives.
2. Talent Shortages and Staff Burnout
“42% of accountants are turning away clients due to staff crunch, reveals CPA Trendlines Survey.”
The accounting industry has been battling a talent shortage for quite some time now. While the situation has improved slightly, CPA firms still find themselves short on talent to hire and retain their existing staff. As a result of the ongoing talent shortage, CPA firms often turn away new clients, experience staff turnover, and find visible signs of staff burnout among their existing staff. An outsourced CAS provider can easily fill these gaps with their team of accounting and bookkeeping experts, ensuring continuity and quality of service.
3. Inconsistent Turnaround and Declining Client Satisfaction
The key to growing client satisfaction is delivering services in a timely and accurate manner. However, if your CPA firm is facing severe to moderate delays in financial reporting, payroll, or other accounting processes, your clients will begin to lose confidence in your services and, consequently, in your firm, resulting in irreversible damage to your firm’s reputation. However, by outsourcing CAS, you have the opportunity to streamline processes, optimize workflows, and improve overall turnaround times. All of these will significantly enhance the client’s experience.
4. Inability to Scale with Growth or Evolving Client Needs
The accounting landscape is a highly competitive space with ever-evolving client requirements, the need to outgrow the competition, and the urge to launch new service lines to meet client demands. All of it can stretch your in-house capabilities and put your growth plans on hold. However, by partnering with an outsourced CAS provider, you gain the ability to keep up with evolving client requirements, such as advanced reporting, M&A support, or industry-specific compliance, and consequently scale your practice for sustained growth.
5. Rising Operational Costs and Inefficiencies
With growing overhead costs, building and running an in-house accounting team is becoming increasingly costly. And if you, too, are finding it hard to keep up with the increasing costs of salaries, benefits, training, and technology investments, outsourcing CAS is just the perfect cost-effective solution. By leveraging external expertise and cloud-based platforms, you can easily streamline processes and bring down your overhead costs.
Business Benefits of Outsourcing Client Accounting Services
Just as with any outsourcing engagement, outsourcing CAS also offers a wide range of business benefits in addition to the obvious cost-saving benefits that we frequently associate with outsourcing. Here are some unique strategic advantages for CPA firms that outsourcing CAS has to offer:
- Access to Advanced Technology: Outsource CAS providers harness advanced cloud-based accounting platforms for delivering their services and safeguarding sensitive financial data and real-time reporting.
- Enhanced Compliance and Security: Outsourced CAS providers have a team of accounting and bookkeeping experts who stay updated with regulatory changes and best practices, minimizing compliance risks.
- Focus on Core Services: By partnering with outsourced CAS providers, CPA firms gain the ability to concentrate on advisory, tax planning, and other high-value services.
- Scalability and Flexibility: Outsourced CPA service providers enable you to adjust your service offerings as per the needs of the client without spending too much on hiring new talent.
These are some of the most common business benefits you can expect from your CAS outsourcing engagement.
Conclusion: Ready to Outsource CAS?
If you’re looking to unlock unmatched efficiency, profitability, and client satisfaction for your CPA firm, knowing the signs that your CPA firm needs to outsource CAS is a good first step. Whether you are battling a staffing shortage, suffering from operational bottlenecks, or want to meet your growth goals, outsourcing CAS can help you do so. Outsourcing brings accounting expertise, technology, and scalability that make your CPA firm competitive in today’s modern market. Identifying and addressing the signs that your firm needs to outsource CAS allows you to focus on delivering value-added services to your clients while leaving the complexities of day-to-day accounting to trusted professionals. If you’re ready to outsource your CAS, we have the necessary expertise and ecosystem for you. Just write to us at marketing@datamaticsbpm.com, and we will have our CAS experts reach out to you with a solution perfectly tailored to your needs.
What services are typically included in outsourced CAS?
Outsourced CAS can cover bookkeeping, payroll, accounts payable/receivable, financial reporting, budgeting, forecasting, and advisory services.Â
How do I know if my firm is ready to outsource CAS?
If you’re experiencing any of the five signs discussed—overwhelming workload, talent shortages, inconsistent turnaround, inability to scale, or rising costs—it’s time to explore outsourcing options126.Â
Will outsourcing CAS affect client relationships?
When managed properly, outsourcing often improves client satisfaction by providing more timely and accurate deliverables
