Technology has helped transform the way small CPA firms operate. Crunching numbers and maintaining ledger books manually have become a thing of the past. Today, clients expect instant information on their financial data. They want real-time data and error-free accounting. Unless small CPA firms adapt to the ever-changing needs, they run into a risk of becoming irrelevant in the industry.
Small CPA firms are constantly striving to grow in the number of clients and the complexity of the jobs they deliver. Meeting the diverse and growing needs of the clients can be a daunting task, if not managed well. Offshore teams, for these CPA firms, act as advisors to do the right thing and scale faster. The demand for efficiency and improved client experiences requires the CPA firms and their offshore partners to focus on integrating accounting software to daily operations and excel at it.
Offshoring: The key to accounting success
Before we delve deeper into gaining efficiency through software integration, let us understand why outsourced accounting services make sense:
According to research by AICPA, about 60% of CPA firms outsource some parts of their accounting functions. These are mostly non-core activities like bookkeeping, taxation, payroll, accounts payable, and accounts receivable. The world has picked up a pace that can be hard to keep up with. In businesses, where most individuals perform too many functions, outsourcing helps reduce workload and stress. When small CPA firms outsource some of their functions, they also reduce the chance of human error and prevent their teammates from burning out.
What started as merely a model of cost saving, today, offshoring is so much more than that. The team operating from a geographically distant land, not only helps complete the redundant and repetitive tasks, in fact, also acts as an advisor.
The 2018 Client Accounting Survey, conducted by bill.com, along with CPA.com found that 30% of companies outsourcing accounting have received advice from their offshore partners, which has been profitable. 68% of the companies report that accounting has become faster and more efficient.
Achieving efficiency through accounting software integration
If you have successfully picked the right offshore bookkeeping partner, congratulations! But you are at the next critical step. Unless your offshore partner is able to learn and use your software effectively, your partnership won’t succeed. Here’s what you can do for seamless integration of the software:
- Define the objectives: Clear communication is key to achieving long-term success in your partnership. To make the integration process seamless, start with an onboarding meeting with your offshore team, where you discuss the objectives and expectations for the integration. Be transparent about your firm’s goals, the results you expect to see, and the duration in which you expect the team to gain expertise. This meeting should also focus on sharing important information on the existing workflows.
Your offshore team needs to know about the team’s current processes. For smooth collaboration, both teams need to be on the same page and meet the common end goal – seamless execution and success.
- Introduce them to your software: As the CPA firm, it is your responsibility to provide in-depth training on the software you use or plan to use. The goal here is to emphasize the features and how they align with your goals. The offshore team should be aware of the software’s features, capabilities and clients’ requirements. During the training sessions, set up accounts of the team members who need access, and establish their roles clearly.
Give them the opportunity for test runs with sample data. The hands-on experience makes them comfortable, confident, and prevents errors. While choosing an offshore partner, make sure to choose someone like Finsmart Accounting, where “trained professionals”, instead of “trainees” are deployed for working on live clients.
- Migration of data: Your historical data is key for the offshore team. Make sure you assist them in transferring and understanding this data while ensuring integrity and accuracy. Establishing strict protocols for the usage of the available data is also important. Accurate data synchronization helps it flow seamlessly between the offshore and in-house teams. This process is similar to hiring new in-house teammates, where you have to introduce them to all the available data, and let them familiarize themselves for successful integration and collaboration. This is critical while outsourcing accounts receivable and accounts payable services as well!
- Integration of the process: Setting up of the workflow accurately lies at the core of the integration process. Collaborate with the offshore team to map specific processes, roles, and responsibilities they are expected to perform. Set up communication channels (email, task management tools, weekly/daily meetings, etc.). These channels are not merely meant for reporting progress, but also for addressing any issues quickly that might arise during or after the integration process.
During the initial phase, you will have to spend more time in intensive review and feedback. Regular feedback, from both teams, about the processes help identify any bottlenecks and rapid scaling of operations. As the offshore team becomes more proficient, they become independent and require less support.
- Ongoing quality checks and monitoring: An accounting firm without constant quality checks and audits may become a mess. Maintaining quality and compliance is key. These checks should be levied on offshore teams as strictly as it should be for in-house teams. To make sure, this becomes a continuous practice, define KPIs. The key areas that should be included are accuracy, speed, client satisfaction, and adherence to processes.
Build a culture of reporting any software-related issues or to provide feedback for improvement. The loop of feedback helps maintain high-quality jobs and leads to improvement of the integration process.
- Training & support: It is not enough to train the team just at the beginning of the partnership. While the initial training is imperative, additional sessions help the offshore team stay abreast with updates on the features and software. The offshore team should always be aware of such changes and be ready to put them to use as and when needed.
Another important aspect here is to keep a channel open for technical support. Issues and challenges are unavoidable in daily operations. An active support system helps the offshore team resolve the issues promptly and minimize disruptions.
- Create a manual: Time zone differences might pose challenges in day-to-day functions. Creating a comprehensive manual on the use of the software gives the offshore team a ready reference during their work hours. With this manual, the team based miles away will be able to resolve software-related concerns without delays. This handbook should include detailed information about the software’s features, functionalities, and best practices. This manual works wonders, especially in cases of extreme time differences as the offshore team can work with ease even without the in-house team being available.
Ask Finsmart about accounting software integration
While software integration can be challenging if not done right,working with an offshore team is one of the best solutions for small CPA firms. The benefits of this business process are immense, however, the CPA firms also need to pay attention to what their offshore team might need to adapt to the software easily. The integration of the software for offshore teams is dynamic.
It requires clear communication, thorough training, and comprehensive collaboration. The success not only lies in choosing the right software and offshore partner but also in the firm’s eagerness to nurture a long-lasting relationship.
Have more questions about offshoring or software integration? Reach out to your team at connect@finsmartaccounting.com.
We recommend checking out these recent blogs and service pages as well:
Benefits of offshoring accounting and financing
Artificial intelligence in accounting
Tax software for small CPA firms
Risk management in accounting firms
Accounts payable and receivable services
Director Growth Strategy & Alliance
Maanoj Shah is a finance and outsourcing expert with strong Business Strategy and Scaling-up experience. Over the last 20 years, he has incubated multiple businesses and helped build global enterprises in verticals as diversified as hospitality, technology, and healthcare.
