Did you know that accounting was one of the first outsourced practices and still is one of the most popular services to be outsourced? Think of all the daily tasks that take up your time and do not add to your revenue; most companies these days outsource to drive efficiency and free up their time to run their business more proficiently.
But there are numerous reasons why CPAs choose to outsource their processes:
Cost reduction – When you think of outsourcing, you know there should be a cost reduction from what you currently pay to get your accounts completed. This is invariably due to the difference in the cost of living in the US and the country you outsource to. There will be a huge saving on infrastructure, employment taxes and other overhead costs.
Remember some offers may be too good to be true. There is no point working with the cheapest outsourcer you find if the work they produce is to a low quality or doesn’t get completed in a timely manner.
Higher skilled processes – Some outsourcers aren’t what they used to be; they have moved from only providing the basic functions like transactional processes to higher skilled functions like budgets, forecasts, and internal audits. This gives you the opportunity to offer a service you previously didn’t have the skill, time or software to offer and delivers added value.
If you want to open up more services to your clients this way, test your outsourcer first. Does your outsourcer offer a trial to allow you to examine their capabilities? Make sure you slowly integrate the volume of difficult work you want to give them to ensure they can handle what is thrown their way. With some outsourcers we can assure that you will be pleasantly surprised at the experience and skill level they are capable of.
Standardized processes – Now that outsourcers are able to complete every step of a process, it allows them to better inform you and give advice as to how to optimize your own internal processes and take advantage of the cash on-hand. Not only does this standardize the process but it simplifies it because now you will have someone who can give advice and feedback using knowledge from across the board of all the finance reports.
Technology and software – Every year there is new software to help you complete your accounts but it gets very expensive staying up to date. Not only is it expensive but if you are staying up to date, you have to spend a great deal of time learning and getting used to the new software. When you outsource you get access to the top software tools in the industry. The new technology and software generally makes doing the F&A much easier and increases efficiency and by outsourcing you can have access to it without the disadvantages.
Check what software the outsourcer can use before signing the contract, again a trial is a great way to really know.
Increased Control – Most people believe outsourcing reduces costs but with that comes a loss of control. Surprisingly it is quite the opposite and businesses claim to have more control than previously. The reason for this is as the work is not being done in-house it is being managed by the business more strictly.
Knowing how the outsourcer works and is being managed is a great thing to know before outsourcing.
With outsourcing you can have continuous business improvement with flexibility that you will not have in-house and carry on focusing on your core competencies. Like accounting, outsource your bookkeeping services also. Here is why CPA firms should outsource bookkeeping services?