“A bad accounting is equivalent to bad business”
This is the success mantra for CPA firms. If they didn’t deliver the high-quality accounting services to their clients, then they are set to fail very soon. CPA firms need to work on maintaining the high standards of their accounting and bookkeeping services. And, this mostly depends upon the accounting staff hired by the companies.
In this technology era, CPA firms have two options ahead of them to strengthen their quality of work – they can hire in house staff or can look for outsourced accounting services. Both methods have their pros and cons which makes it difficult for accounting firms to stick to one option. So, if you are confused and can’t fathom whether to hire competent in-house accounting staff or search for the virtual accounting services, then we have laid down a detailed comparison between both options so you can make your decision wisely.
In-house Accounting Staff vs Outsourced Accounting to India
Accounting outsourcing in the USA is a big trend nowadays for multiple reasons such as quality of work, cost efficiency, better control and much more. Accounting firms are usually preferring to hire remote staffing for CPAs from nations like India where they are getting highly professional services at very affordable rates from companies like CapActix. But, still, some of the CPAs firms aren’t sure between both the options so let see which decision is ideal for your accounting business.
One of the major points that every accounting firm is looking forward to is to reduce the cost of its business operations. On the grounds of cost, hiring a full-time bookkeeper and accountant is roughly going to cost $45,000-$60,000 individually. That’s means to hire both you have to pay around $100,000. Additionally, you have to add up 20% on top of the employee’s basic salary for – payroll taxes, medical benefits, retirement plans, sick day leave, recruitment expenses, etc.,
On the other hand, if you outsource accounting services to India, then you won’t have to pay a 20% overhead cost which will straightaway save you between $2500-$5000. So, if you save $5000 per month, then for a full-year you can save $60,000. Plus, you can hire remote staffing for CPA firm according to your requirements like you can hire only payroll service or only bookkeeping services and you have to pay for the service which you have outsourced only. Additionally, the exchange value of the US dollar is higher than Indian rupees and this will extra save you huge money.
After comparing all the cost-related factors, it is clear as daylight that accounting outsourcing in the USA is a very good option.
When a CPA company hires an in-house staff, then they have to provide the training to function properly in the company. But, in the busy work schedule of an accounting firm, it becomes very hard to screen the right candidates and provide them training. And, if small accounting firms go and hire experienced staff, then this will kickup their costs eventually.
On the other side, outsourced accounting services already have highly qualified and expert staff present with them. Plus, employees of outsourced companies undergo through continue accounting and technology training. So, by accounting outsourcing companies in the USA, you will get an unlimited supply of accounting professionals from India.
Accounting firms need to establish proper internal control to ensure the systematic flow of the accounting system, timely completion of work, etc., The CPA firms need to undertake series of checks to eliminate the risk of getting ripped off. Especially, when you have a small business with 2-3 accounting staff members, then the risk of fraud increases more. As the person who is in charge of creating a reconciliation statement is also in charge of maintaining a cash book. Thus, the employee can easily misjudge some accounting information of your client or can steal money from you.
In this scenario, outsourced accounting services reduce the risk factor as the duties of creating a reconciliation statement can be given to an outsourcing company that has no direct link with your in house staff. Additionally, most of the outsourced accounting companies have two sets of eyes to review every work accomplished by their accountants. The different professionals view the accounts before the final submission to the client so there’s no room committing frauds.
To satisfy their clientele, accounting firms have to offer them a variety of services from bookkeeping to internal auditing. To provide different services perfectly to the clients, companies need to appoint different professionals such as to manage bookkeeping projects general accountants and for business analytical reports – an experienced analyst is required. It is neck to impossible for small scale business organizations to hire different professionals to provide various services.
So, in that case, virtual accounting services come very handily as you can hire them to provide you specific services only. Suppose if you have brilliant in house bookkeeper, then you don’t need to outsource bookkeeping services. You can outsource other services as per your requirement like tax preparation services in busy tax season.
The selection between the outsourcing and in house accounting staff completely depends upon the individual requirements of the businesses. For some large accounting companies in the USA, it is profitable to hire in house accounting staff, but for most of the small and medium scale – remote staffing for CPAs is a perfect solution.
If you are looking for the competent outsourced accounting services from India, then you can hire the efficient outsourced accounting company CapActix today. We are one of the robust outsourced accounting solutions for the busy CPA firms as we offer a wide range of accounting services at very affordable rates. To inquire more about our services, you can contact us using email [email protected]. or can calling on +201-778-0509.