For most CPAs worldwide, the period between January to April, or at times May, is generally the “busy season.” For them, it is that time of the year when long working hours, overwhelming work, and physical and mental stress seem like an everyday thing. The reason behind that stress can be anything from a surge in client demands to impending tax filing deadlines, stringent audits, or even the fast-approaching financial reporting deadlines.
Whatever the reason, not many CPAs around the world seem to like this time of the year; it not only brings down their overall productivity but also results in burnout and, at times, takes a toll on their personal lives.
But what if there was a way to turn the “busy season” into the most productive and fruitful time of the year? A time when profit margins soar, your mental health remains intact, and you grow both personally and professionally. This is where Outsourcing comes in – a business strategy that has revolutionized how businesses approach the “busy season.” By outsourcing mundane tasks that consume the most time in their calendar, CPAs can focus on tasks that drive growth and enable them to thrive not just during the busy season, but all year round.
In this blog, we will understand the power of Outsourcing for CPAs by taking a closer look at how Outsourcing for CPAs as a strategy transforms the way CPAs balance their workload, what an ideal outsourcing partner for CPAs must have, and some of the most glaring benefits that Outsourcing has to offer. So, let’s get started.
Know The Power of Outsourcing for CPAs
Outsourcing, in general, is the practice of delegating business processes that are mundane and repetitive to an offshore team. For CPAs, these mundane processes can be anything from payroll processing, bookkeeping, tax preparation, and even audit. All these processes are labor-intensive and demand much time. By outsourcing them to an offshore team, CPAs regain their time and focus, which can now be allocated to growing their practice and client servicing. If you are a CPA or a CPA firm owner looking to explore the outsourcing route, here are some of the tasks that you can begin with –
• Accounting & Bookkeeping
Everyday tasks such as managing accounts receivable and payable, maintaining ledgers, and even reconciling bank statements.
• Tax Preparation and Filing
Tax return preparation and filing is one of the most outsourced tasks; it allows CPAs to stay compliant with tax laws without worrying about the tightening deadlines.
• Payroll Processing
Payroll processing is one of the most tedious tasks for a CPA firm. Calculating taxes and deductions, making timely payments, etc., can be tiresome. But with outsourcing, all these are just a cakewalk.
• Audit
documentation. Outsourcing service providers have a team of audit experts who ensure that every process is followed diligently with no scope for error. This level of expertise and dedication can give you the peace of mind, you deserve, knowing that your audit tasks are in capable hands. This confidence in the quality of work can be a significant reassurance for CPAs.
In addition to these major tasks, you can also outsource several other administrative tasks such as data entry, client communication, etc. With the immense power of outsourcing, you can free up ample time from your plate and dedicate all that time to grow your practice and acquire new clients. This potential for business growth and client acquisition can be a source of inspiration for CPAs, showing them the possibilities that outsourcing can unlock.
Common Fallacies About Outsourcing for CPAs
Despite the enormous benefits of outsourcing, the naysayers still need to be convinced about its capability to ease the workload for CPAs. We take this opportunity to debunk some of the most widespread fallacies about outsourcing for CPAs –
• Losing Control Over Processes
The biggest misconception about outsourcing is that you lose control over processes. However, if you partner with the right outsourcing service provider, you get even more control over all your processes through timely communication, constant feedback, and higher QC checks.
• Addressing the Quality Concern
There is a lingering belief that outsourcing service providers cannot match the quality of in-house teams. However, reputable outsourcing service providers deploy highly skilled professionals who consistently deliver the highest quality of work across all accounting needs. This professional competence should reassure CPAs of the quality they can expect from outsourcing.
• Reassuring Data Security
Data security and confidentiality have always been major concerns with outsourcing. However, reputable outsourcing service providers adhere to stringent data protection regulations and follow secure communication protocols. These measures are in place to ensure seamless risk mitigation, providing CPAs with a sense of security and protection for their data.
• Higher Cost
While the initial cost of outsourcing your accounting and bookkeeping tasks might seem heavy to some, when you consider the immense time savings, minimum overhead costs, and increase in efficiency, the initial cost seems miniscule.
To sum things up, despite various fallacies associated with outsourcing, when done right, it can be a game changer for CPAs. All you need to do is follow the fundamentals of outsourcing and address the common concerns associated with it.
Get Started with Outsourcing in your CPA Practice
Getting started with outsourcing in your CPA practice will require a significant transition away from your everyday operation, and thus, it must be done with utmost care and planning. Your plan to outsource some or most parts of your everyday accounting and bookkeeping tasks must identify the tasks that are occupying a considerable amount of time from your everyday routine, along with concrete, measurable goals that will help you measure the effectiveness of outsourcing for your practice.
Furthermore, you must also identify the resources, such as technology, support, and training, to facilitate a smooth transition. You can kickstart your outsourcing journey once you have outlined all these essentials. However, if you still need assistance in some areas, you can always contact us at [email protected], and we will help you transition to a fruitful outsourcing model for your practice.
Happy Outsourcing!
