Operational costs can quickly drain a company of funds, and it’s no different for CPA firms. By outsourcing some of their accounting needs, however, there’s the potential for such companies to slash their operational costs by as much as 50%, whether this be in time, people, or money. As an added bonus, outsourced accounting can also help CPA firms manage bigger volumes of tax and compliance work, enabling them to take on more customers and grow their business.
Here are just some of the ways outsourced accounting can help CPA firms significantly reduce the costs associated with operating their business:
It offers a variety of models
By enabling CPA firms to choose what work they pay a service provider to carry out on their behalf, and when, they can eliminate the need for a full-time employee who might be sat around twiddling their thumbs while waiting for work to come in, but who will still need to be paid a full salary plus benefits! Money can even be saved on such things as taxes and office supplies.
The hiring process is eliminated
It can cost companies a lot of money each time they need to hire new employees, whether they’re full or part-time, and aside from advertizing costs, there are the costs associated with training and retaining them, too. When you outsource, not only can you save money on the hiring process, but you can free up your time to carry out more meaningful or income-generating activities.
It enables you to scale your firm up or down as required
Most CPA firms experience an influx of customers and work on the run up to tax season, and are forced to hire new employees to help them cope and continue serving customers appropriately. With outsourcing, you can simply use their professional services when the need arises, and then stop using them when the work slows down again, making scaling up and down, super simple and cost effective.
You get access to tax experts
You can be sure when using the services of a professional outsourced accounting firm, that they will have the training and experience to handle a wide variety of tax-related tasks efficiently and without incurring any penalties or fees for errors. When you take on a new hire, that certainty is not always there, which can cost you dearly.
Work is turned around quickly
You can easily meet deadlines when using an outsourced service provider, which keeps your clients happy, and goes a long way towards enhancing your reputation.
You can stay ahead of your competitors
While such services as bookkeeping and tax preparation are important elements of a CPA firm, they do take up a lot of time, and don’t necessarily bring the biggest profits. By outsourcing these requirements, CPA firms can focus their time, skills, resources, and energies on boosting their bottom line and staying one step ahead of their competitors.
Outsourcing can be a great resource for CPA firms even outside of tax season, and can help them take on bigger workloads without the added expense of full-time employees.
With growth being the key to any firms success, if you can use outsourced accounting services to grow your client base and increase your firms’ profits, why wouldn’t you?
