5 Reasons Why Accounting and CPA firms should outsource their bookkeeping services.

Let’s face it, at the end of the day each and every business in the market is here to make money and plan to increase their nexus in the global market. The nature of the accounting realm is such that we have an
“all-encompassing” array of services like financial reporting, yearend reporting, auditing, taxation, payroll, data processing, bookkeeping and a plethora of other services that comes under the same umbrella.

When a business chooses to engage with a client, many times they have to provide 2 or 3 services for the same client wherein they may not have the manpower or the bandwidth to provide high quality services to multiple clients at the same time.

How many of the accounting firms break into a sweat during tax season or yearend reporting time and invest a gigantic amount of money in IT infrastructure, payroll, overtime expense and get to the finish line just in time?

Now what if I say that financial reporting coincides with tax reporting which overlaps with bookkeeping, payroll or yearend reporting? Sounds daunting right?

These are the 5 reasons why CPA and accounting firms should outsource their bookkeeping services.

1. Increase your profit margin by focusing on “other” services - The general norm is that bookkeeping does not bring in a huge profit margin for the firms and due to the high competition in the market, the pricing structure of this service is pretty low. So it would be a smart move to offload this work to a capable organization that would get the work done without compromising on the quality of the work.
   
   
2. Save time, save money - The successful accounting firms choose to focus their energies on some critical work areas that may require more detailing and attention than bookkeeping and allied repetitive tasks. Outsourcing companies are very well equipped to hire highly trained professionals who are trained in this particular sector of work and get the job done for multiple clients in a fraction of time.
   
   
3. The “Age of Technology” - We live in an era where it is important to keep ourselves abreast with all technology and software programs that are predominant in the market to be relevant in the business. Accounting firms may or may not have the time to understand the different software programs in the market. Outsourcing companies on the other hand make it a top priority to stay on top of all the accounting software used by the clients and also train their employees to provide high quality services to the firms.
   
   
4. Low employment cost - Offloading some work to an outsourcing organisation means no employee tax liabilities, no retirement benefits, no compliance, no worker’s compensation, no bonuses and no retirement benefits. You can enjoy remote operational support at your fingertips and can access some of the best talented professional pool all across the world.
   
   
5. Improved Scalability - Many Accounting and Bookkeeping firms face a bottleneck with their workload when the client base increases and they may not have the manpower or the capacity to shoulder on “additional” workload. By outsourcing work to an external company, the CPA firm can choose for a low cost, highly experienced set of professionals to ease off their work. Bookkeeping companies are very adept at having a quick turnaround for the accounting work time because they focus and specialise in that particular subject matter.

Firms today want to reduce their operational vigilance and focus more on growing revenue and strategizing on long term business plans and Outsourcing definitely is a sure shot answer to that problem.