What To Outsource at Your CPA Firm
In today's fast-paced and competitive business environment, CPA firms constantly seek ways to streamline their operations, increase efficiency, and deliver better value to their clients. One strategy that has gained significant popularity in recent years is outsourcing. By outsourcing certain tasks and services, CPA firms can leverage the expertise and resources of third-party providers to improve their overall performance and focus on their core competencies. In this article, we will explore the benefits of outsourcing for CPA firms, the services commonly outsourced, factors to consider when outsourcing, steps to successfully outsource tax preparation, common concerns and challenges of outsourcing, and tips for successful outsourcing.
Table of Contents
Benefits of Outsourcing for CPA Firms
- Increased cost-efficiency
- Access to specialized expertise
- Improved focus on core competencies
Services commonly outsourced by CPA firms
- Tax preparation services
- Bookkeeping and accounting services
- Payroll processing
Factors to consider when outsourcing
- Identifying the need for outsourcing
- Choosing the right outsourcing partner
- Ensuring data security and confidentiality
Benefits of Outsourcing for CPA Firms
One of the primary benefits of outsourcing for CPA firms is increased cost-efficiency. By outsourcing non-core tasks such as tax preparation services, bookkeeping and accounting services, and payroll processing, firms can save on overhead costs associated with hiring and maintaining an in-house team. Outsourcing allows firms to access high-quality services at a fraction of the cost, ultimately leading to significant savings.
Access to specialized expertise
Another key advantage of outsourcing is the access to specialized expertise. CPA firms can tap into the knowledge and skills of professional outsourcing providers who specialize in specific areas such as tax preparation, bookkeeping, and payroll services. In this instance, it’s important to keep in mind the workforce providers are outsourcing your work. Some may not have access to licensed contractors. However, services like Taxfyle have licensed CPAs and EAs among their contracted workforce that can help firms improve their operations and better serve their clients. Additionally, firms looking to outsource their services are able to find providers whose workforce consists of licensed professionals such as CPAs or IRS Enrolled Agents as an added measure for quality assurance.
Improved focus on core competencies
Outsourcing non-core tasks also allows CPA firms to focus more on their core competencies. Instead of spending valuable time and resources on activities that are not directly related to their expertise, firms can allocate their time and resources to more strategic and revenue-generating activities. This increased focus on core competencies can lead to better client service, higher revenue generation, and overall business growth.
Services commonly outsourced by CPA firms
Tax preparation services
Tax preparation services are one of the most commonly outsourced tasks by CPA firms, especially during the busy tax season. Outsourcing tax preparation allows firms to handle the increased workload without adding full-time staff. By partnering with a reliable outsourcing provider, firms can ensure that tax returns are prepared accurately and on time freeing up their staff to focus on more complex tax-related issues and client consultations.
Bookkeeping and accounting services
Bookkeeping and accounting services are also frequently outsourced by CPA firms. By outsourcing these tasks, firms can ensure that their clients' financial records are accurately maintained and updated without the burden of managing an in-house accounting team. Outsourcing bookkeeping and accounting services can also improve efficiency through advanced accounting software and cloud-based solutions, resulting in real-time access to financial information and streamlined reporting.
Payroll processing is another service commonly outsourced by CPA firms. Managing payroll can be time-consuming and complex, requiring extensive tax regulations and compliance knowledge. By outsourcing payroll processing, firms can ensure accurate and timely payment of employees while minimizing the risk of errors and penalties. Outsourcing payroll processing can also provide access to specialized payroll software and expertise, allowing firms to manage payroll for their clients efficiently.
Factors to consider when outsourcing
Identifying the need for outsourcing
The first step in successful outsourcing is identifying the need for it. CPA firms should assess their current workload, staff capabilities, and the tasks that outsourcing can efficiently handle. Identifying the tasks that can be easily delegated to a trusted outsourcing partner is important to maximize efficiency and cost savings.
Choosing the right outsourcing partner
When outsourcing, it is crucial to choose the right outsourcing partner carefully. CPA firms should thoroughly vet potential outsourcing providers, considering their experience, expertise, track record, and client reviews. It is also important to assess the provider's infrastructure, technological capabilities, and security measures to protect sensitive client data.
Ensuring data security and confidentiality
Data security and confidentiality are key concerns when outsourcing tasks that involve sensitive client information. CPA firms should ensure that the outsourcing partner has robust data protection measures and adheres to strict confidentiality protocols. Establishing legal agreements and confidentiality clauses is essential to protect the firm's and clients' data.
Outsourcing can bring numerous benefits to CPA firms, improving efficiency and reducing the amount of busy work that needs to get done. By carefully considering the services that can be outsourced, CPA firms can successfully leverage the power of outsourcing to drive business growth. With the right approach and strategic outsourcing decisions, CPA firms can position themselves for success in today's competitive accounting profession.
How can Taxfyle Help?
It’s hard to balance providing clients with high-value services without adding increased stress to your staff, especially once tax season rolls around. That's where Taxfyle comes in to help.
By contracting tax returns to Taxfyle, your staff will have more time to focus on providing value-added services to your clients. This will improve their job satisfaction and benefit your bottom line. Firms that have partnered with Taxfyle have reported significant improvements in finding more time during the week to focus on their clients and themselves, resulting in increased client satisfaction and staff retention.
Don't let stress and burnout drive your employees away. With Taxfyle, you can give your staff the breathing room they need to excel and provide your clients with exceptional service.
What To Outsource In Your Accounting Business
Whether your firm is heading into its first tax season or spent years marching through the grind, you, your partners, and your staff have likely experienced the common symptoms countless other firms across the nation face. As the work piles up and the IRS makes it more difficult for filers to navigate the tax laws, your firm’s staff have likely experienced burnout or gaps in their workflow that inhibit their ability to continue making meaningful connections with clients, therefore driving in more revenue for your firm through value-added services.
Sure, you can hire a few more hands to pick up the slack. It’ll help to have a new face or two to pick up some of the work burdening your staff. But that’s an expensive solution that may require you to lose some of your already precious time with your clients and devote it to interviews and scanning through resumes. But what if there were a different option?
Outsourcing your existing services to teams of accountants may be the ideal solution to solve your firm’s workflow problems without adding to your overhead costs. If you’ve been considering outsourcing services or are interested in optimizing how your firm functions, this blog post can help you understand some of the services you should outsource.
What is Domestic Outsourcing?
Outsourcing is a great tool for any firm owner looking to save expenses while increasing productivity. While it is true that some outsourcing involves overseas employees taking over a task at an office, there are also various methods to outsource a bit closer to home. For example, at Taxfyle, our platform hosts a network of CPAs and IRS Enrolled Agents from across the country.
How Do I Know The Accountants Preparing My Outsourced Work Are Verified?
It’s up to the outsourcing provider to run those checks, but it’s OK if you want to ensure you’re handing your work off to qualified individuals. For example, at Taxfyle, we check each Pro's license to ensure it is current and in good standing. Taxfyle uses CPA Check to verify the status of each CPA in our network and the IRS's publicly available list of EAs.
What Services Should My Accounting Firm Outsource?
- Tax Preparation
Firms spend the majority of their time devoted to tax preparation. In-house tax preparation necessitates specialized personnel and resources. Dedicating staff time to performing tax preparation job alone necessitates a significant expenditure. While tax preparation and other similar services are vitally essential for CPA companies, they consume time that could be spent on activities that increase the business's earnings. Firms can acquire a competitive advantage over local competitors simply by outsourcing these services.
Outsourcing payroll processing enables your accounting firm to automate this activity, increasing efficiency and dependability. To provide cost-effective payroll solutions, several outsourced accounting firms use software.
Technology decreases the likelihood of payment processing or tax return mistakes, sparing your firm from paying large fines. This outsourced solution benefits startups and small businesses the most since it helps them handle payroll and benefits needs and can adapt to grow with the firm over time.
- Bookkeeping Services
Bookkeeping is a time-consuming yet necessary activity requiring meticulous attention to detail and continuous updating. If your firm does not have a full-time bookkeeper, this duty may become too much for other staff to manage on top of their existing responsibilities. Bookkeeping errors may have a long-term detrimental influence on your firm's ability to provide reliable services. Outsourcing your bookkeeping services might help you prevent these mistakes or simply allow your staff more time to fulfill their work while this essential service is taken care of.
Outsourcing also keeps the costs of maintaining bookkeeping services low because you don't need to hire additional employees or provide benefits. Outsourcing your bookkeeping gives you access to qualified professionals who will search for mistakes and omissions in your paperwork and correct any they find.
Does Your Firm Need A Boost?
Finding ways to improve your staff’s ability to make meaningful connections with clients can be challenging. Especially when they’re on the verge of burnout from excess work and stress.
Luckily, there’s a solution to alleviating workflow issues without increasing your firm’s overhead costs. With Taxfyle, you can outsource your excess work to our network of licensed and verified accountants nationwide.
By outsourcing domestically with Taxfyle, you can augment your firm and begin making more value-added connections with your clients because your staff and partners have more time freed up.
Don’t wait until it’s too late. Outsource today to give your firm the boost it needs.