The Best Strategy to Maximize ROI by Outsourcing Accounting Services for CPA Firms
In today’s competitive world, outsourcing accounting services is quite common for CPAs and accounting firms. The main reason for outsourcing accounting is that it is cost effective. Moreover, there are several other advantages attached to using outsourced accounting services.
Some of the major benefits of using outsourced accounting services are listed below:
- Better management
- Low investment
- Accurate accounting and financial services
- No hassle of managing human resources
- Save resources on hiring, training, and retaining resources
- Focus more on business expansion
- Increase revenue
- Reduce expenses
- Increase returns over investment (ROI)
The ultimate advantage of using accounting outsourcing services or bookkeeping outsourcing services is to increase ROI without increasing hassle or challenges. Thus, accounting and CPA firms look for the right partners that can help them grow their profit margins.
Opportunities to increase revenue are quite high for these CPA firms because accounting is a fundamental need of all businesses. Accounting forms the core of every business, which is why each business needs the right CPA firm to handle their accounting and finance jobs.
On the other hand, CPA firms can outsource different jobs to cut costs and increase ROI.
Here is the list of various accounting jobs that a CPA firm can outsource to a company that offers outsourced accounting services:
- Accounting and bookkeeping
- Tax filing
- Tax planning
- Payroll management
- Financial statement preparation
- Maintaining inventories
- Subsidiary books and ledgers
- Billing management
- Invoice processing
- Medical invoicing
- And many more
What is offshore accounting?
Offshore accounting refers to a practice where a Certified Public Accountant (CPA) firm hires an external organization from a foreign country and delegates various accounting tasks and services to that organization.
To increase ROI, the CPA firm needs to partner with the right company, plus, it must have a strategy in place.
Here is the guided strategy that a CPA firm can follow to maximize ROI with outsourced accounting services:
1. Clearly defining the scope of work
Although the main reason for outsourcing accounting functions by using accounting outsourcing services or bookkeeping outsourcing services is to maximize ROI and reduce operational costs, it is essential to have clearly defined goals and objectives and communicate them clearly to the accounting outsourcing company. This will help the team to understand more about your company’s goals and objectives. Identifying the goals and objectives and defining the scope of work before starting work with the outsourcing partner will help the sourcing company deliver amazing results without any hassles at your end.
2. Maintaining crystal clear communication
Good communication is the solution to every problem, and bad communication is the cause of most problems. Every business partnership relies on the two partners communicating seamlessly with each other. Outsourced accounting services do not eliminate the chance of any errors. To avoid this, it is vital to regularly communicate with the offshore team and check up on the work done by them. Getting in touch with the outsourced accounting officer to provide apt guidance is essential. Remember, even if you just use bookkeeping outsourcing services, stating expectations clearly can help your company and your partner deliver the right results and avoid rework or waste of resources.
3. Re-balancing the perspective of clients
Another method to improve the ROI for CPA firms is to allow the team that is offering outsourced accounting services to get in touch directly with your clients. This will help the offshore accounting team to understand the needs and demands of the clients and get a much higher ROI for the CPA firm. You can hire accounting experts from your partner and represent them as your own team members. This is a common practice followed by certified CPA firms in India that offer accounting outsourcing services.
4. Cost structure
An important way for CPA firms to save money in the accounting business is by reducing employee costs. By outsourcing accounting services to a professional third party, a CPA firm can save a lot of money, which can then be used for other purposes later. For CPA firms that have an in-house team of accountants who are investing the majority of their time in data processing and management work and not really delivering value to their clients, outsourcing accounting services makes sense since the in-house tasks can be done at a much lower price with a great deal of accuracy.
5. Keeping a real time track of the outsourced functions’ cost
It is quite common for CPA firms to go over the set budget; mainly because they did not keep track of the outsourced function costs. CPA firms need to have a robust system in place to maintain a real time record of the various operational costs. With the implementation of a cost tracking mechanism, CPA firms can get an idea of how the external resources for offshore accounting services are being utilized while using outsourced accounting services.
6. Improved accuracy
By opting for outsourcing accounting services, accounts are managed by professional and experienced experts, which translates to a high level of accuracy. Outsourcing accounting services provides a CPA firm with exceptional results and higher profits. The CPA firm can even ask for periodic reports and updates to keep track of the ongoing things to rectify if an approach is wrong. This can save money by saving time to boost ROI.
Outsourcing accounting services to a company delivering quality work
The purpose of using outsourced accounting services is to improve business performance and reduce operational workload and cost. Before outsourcing accounting or bookkeeping services, it is vital to make an informed decision so that the quality of work is not compromised. The ROI for the CPA firm will be decided by the credibility of the outsourced accounting team.
Outsourced accounting services are an effective tool for CPA firms. It helps them achieve their business goals and objectives by significantly reducing costs and improving productivity, accuracy, and efficiency. Hiring a professional for offshore accounting services improves the clients’ satisfaction levels and the overall profitability of the CPA firms. Working with outsourced accountants is a sustainable strategy that helps CPA firms scale up their business and get a high ROI.
We, CapActix, are a leading certified and expert accounting company that offers outsourced accounting services for CPA firms. If you have any queries, visit our website and Contact us at +1 201-778-0509 or reach out at [email protected].