Today, the digital revolution has bombarded every sector of the market with its components and created a highly competitive market environment. Especially, if we observe the impact of the digital period on the accounting firms and tax firms, then the influence of technology can be seen better.
In this digital storm, our professional accounting industry needs the support of modern technology to survive this whirlpool. But why practices of our traditional accounting firms are not sufficient anymore?
Why Traditional Accounting Firms Need Change?
The accounting industry is a highly professional and well-structured field where several professionals from CPAs to enroll agents are managing the finance of multinational companies and individuals. But, currently, traditional accounting firms with the compliance revenue model aren’t sufficient to float in the modern technology-oriented system.
Traditional accounting firms who are hesitant in adopting changing and modern practices have to face the following challenges;
- Higher Wages – The biggest expense of the CPA firms is the salary of the people. With an increase in the competition, it has become very important for accounting firms to hire talented employees at affordable rates.
- Legal Costs – Under the new legal compliance rules of employees in the US, companies have to provide additional benefits to their employees like healthcare, insurance, and other benefits. This is an extra financial burden that needs to be born by traditional accounting firms.
- Improve Scalability – Today, the operational area of accounting firms has increased from budgeting to managing the financial resources of an organization. But to provide these services firms need to upscale to highly costly staff which is very difficult to hire on a full-time basis.
- The pressure of Downtime – To increase the productivity of the firm during tax & audit seasons, CPAs higher additional staff, then they have the challenge of bearing their cost during the off-season.
- Diverse Team – To handle all the different types of financial work, it is a challenge for accounting firms to establish a diverse team.
All in all, as we know the success and failure of the CPA and Accounting firms depends on how effectively you manage your staff, all the challenges are related to staff management only.
Modern Accounting Firms Are a Necessity!
Today, if you want to overcome all the challenges of traditional accounting firms, then it is highly important to establish modern accounting firms with remote staffing solutions. According to a survey, traditional accounting firms’ staff can drive only 40% of profit to their firm which is very low in today’s market conditions.
When we look at the features of modern accounting firms, then we can realize that modernization is the necessity for accounting firms to eliminate all the challenges faced by traditional accounting firms. Please check on some of the features as follows;
1. Remote Staffing solutions
Remote staffing has become an inevitable part of the modern accounting firms because remote staffing solutions has all the benefits that traditional accounting firms require to survive in the modern era. Check some of the reasons as below;
- Due to the benefit of different per hour rates around the globe, it is an ideal solution for accounting firms to hire remote teams from the place where the rate is lower due to low Purchase Power Parity (PPP) such as India.
- For remote staff, accounting firms don’t have to pay indirectly human resources costs like refreshments, desk, and other expenses.
- The US-registered accounting firms don’t have to bear the burden of the additional legal costs when they hire remote teams that are placed out of the USA.
- Modern accounting firms can be easily scaled with the help of remote staffing solutions as they can get assistance from qualified accounting professionals at affordable rates.
- Moreover, accounting firms can acquire the services of professionals during the busy season and improve their capacity without hiring additional full-time staff.
This is the reason that most of the big CPA firms in the USA and big tech giants like Microsoft, Dell and Amazon are already operating with remote teams in India for the accounting, tax, and back-office work.
In short, remote staffing solutions can reduce the operational cost of accounting firms by 40%-60% and make it possible for them to develop better-consulting services to their clients. Remote staffing is a solution which offshore accounting firms can adopt to make themselves modern and efficient without any hassle.
2. Automated Workflow
There are many tools and software that have automated or eased many of the bookkeeping work by giving more time to CPAs to focus on business development tasks. For example, modern accounting software and integrated reporting software provide many advanced reporting and business analysis functionalities in addition to accounting. This saves your time in exporting, modeling and analyzing information generated from the accounting software.
3. Insightful Business Decision
Modern accounting tools allow making important business strategies based on real-time information on the different financial aspects of the company. Today, business organizations can evaluate their current market position in real-time and make lucrative business decisions easily.
4. Cloud Structure
With the help of Cloud Accounting Services, accounting firms can now easily integrate their system with all the latest accounting tools and make it possible for their clients to view their financial reports anytime and from anywhere. Cloud computing is one of the important parts of modern accounting firms along with other technologies such as RPA, blockchain, AI, etc.
5. Revenue Management
One of the important tasks for business organizations is to manage their revenue and expenditure accounts regularly. In a traditional environment, accounting firms have to review different charts, schedules, and documents to analyze the present condition of the company. But, under the modern system, they have the tools to do all this work which saves lots of time that CPA firms can utilize for the customer’s relationship management.
You can read 5 Common Offshore Accounting Services Challenges & Easy Solutions to Overcome Them.
So, if you are also looking for the best remote staffing services which can increase the profitability, scale, and efficiency of your business, then you can contact CapActix at email – [email protected] or can call on +1 (201) 778-0509.