Blog
- March 10, 2022
Why CPA firms need to Outsource their services?
The laws have become very strict in recent past with increased complexities which require more focus to compliance, not only for the businesses but also the accounting and tax professionals. In this scenario, growing businesses need a trust worthy professional firm which advise them on various accounting transactions and regulatory compliance with zero failure. This arises need for CPA firms to outsource some of their tax and accounting services so they can focus more on important business deals, advisory, compliances, complex accounting etc. Here are the few pointers which demonstrates why a CPA firm need a full time outsourced professional:
Growth Prospects
Increase in number of small businesses (based on SBA survey, around 33.2 million small businesses exist in US as of 2022) and
complex business transactions (such as business combination) provides immense opportunity for CPA firms to expand their
business and scope of services. In lieu of this, CPA firms should outsource the tax preparation and basic accounting services so
that they can focus on client building, other technical accounting matters, advisory services, etc. This helps CPA firms to grow
their business while outsourced professional performing their service more diligently with taking complete ownership of their
work.
Cost Effectiveness
In a post covid scenario, firms are facing burden in reduction of their service fees leading to decrease in revenue and profit
margins. To increase overall profitability, cost of operations must be reduced. Based upon US accounting market statistics,
average salary for an accountant in US is around $50k whereas it would be much lower if the CPA firms outsource their services
in the country like India. This would reduce their operational cost and increase in the profits and at the same time outsourced
professionals would do the quality work with all applicable standards and CPA firms can focus on more important aspects
Efficient Tax Management
During the tax season, it is very difficult for the firms to manage the taxes of businesses since it is highly consuming effort which
would ultimately impact the revenue generating activities. While, if the tax services are outsourced, those professionals would
do the tax preparation and filing for the clients in a more systematic manner with highly specialized and possessing expertise in
this area.
Digitalization
The world is going digital and so you should be. Most of the outsourced firms are more focused on technology in providing their
services where they simplify your bookkeeping and tax preparation by digitalizing the documents, reports and returns changing
the paradigm from a paper-based environment and enable smooth processing
Technical Expertise
Apart from just delegating the services and broadening your scope of work, you also get the expertise and specialization in
accounting and taxation services. Outsourced firms have highly skilled professionals with wide range of experience in accounting, financial management, taxation, payroll processing etc. and possess required certifications. You can enjoy the following major
benefits on outsourcing your services:
- Enabling you to pay due attention to your passion i.e., your core business functions;
- Preparation of financial statements in accordance with US GAAP and all applicable ASCs;
- Solving all the tax related concerns for your clients. Performing convoluted tax calculation, preparation, and filing job more effortless for you;
- You will experience a reduction in your stress level, reduced efforts involved in understanding complexity of laws and regulations;
- Advise on various matters raised by client which helps you in better reach with clients;
- Preparing all sort of accounting records, bookkeeping, cash flows and much more allowing you to focus on important business aspects;
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