By outsourcing, about 80% of the firms had more time to focus on their business, according to a 2018 Client Accounting Services Survey by bill.com. This number has continued to grow since then.
The modern accounting landscape is highly competitive and the firms are in a race to prove themselves as more efficient and profitable entities. Providing accurate, high-quality services and staying compliant is a prerequisite for accounting firms of all sizes. But the complexities expand much beyond that.
Bookkeeping complexities can divert crucial time from the core operations. As technology continues to evolve and reshape the accounting sector, the demand for agile, cost-effective, and scalable solutions increases. For small CPA firms, balancing client expectations, while maintaining a huge pile of tasks and dealing with resource constraints is a major challenge. That is where teams struggle with operational efficiency and scalability.
Offshoring offers a strategic solution to help streamline and conduct all processes efficiently. They help manage time and ensure efficiency.
Finsmart Accounting – trusted globally for accounts outsourcing services – created this blog to share everything about offshoring bookkeeping services for small CPA firms. From finding the right talent in offshore teams to the difference between offshoring and in-house teams, everything is covered in detail. Let’s start!
Bookkeeping services for small CPA firms:
Small CPA firms bear the responsibility of navigating through and handling accounting complexities while managing the workload of several clients. Especially, when firms are scaling, this becomes a major setback. Through outsourcing bookkeeping, firms can:
1. Handle client relationships better: Outsourcing routine bookkeeping tasks helps small CPA firms dedicate more time to understanding their shortcomings, talking to clients for feedback, or understanding their grievances. By offshoring bookkeeping services, small CPA firms offer strategic financial advice and build stronger relationships with their clients.
2. Save money: Training teams to perform bookkeeping tasks can be expensive and time-consuming. By outsourcing bookkeeping services, small CPA firms gain access to experienced professionals with expertise in bookkeeping and accounting. This helps eliminate the additional expense and get the work done at a much lower cost.
3. Access the latest information: The laws and regulations around accounting and bookkeeping keep changing frequently. By outsourcing the bookkeeping service to an adept team of professionals, small CPA firms can stay updated with the changes, ensuring compliance and accuracy.
4. Use time as a competitive edge: For CPA firms who want to focus on efficiency and growth, offshoring acts as a unique advantage. By outsourcing your bookkeeping tasks to a strategic partner, the firms can harness the power of different time zones. Leaders can easily create a workflow that can transition from in-house to the offshore team.
This allows accounting tasks to be completed on a faster timeline and there is an uninterrupted progress round the clock. While the teams move at a faster pace, clients gain more confidence in the small CPA firms. With offshoring bookkeeping services, the firms become more responsive and agile players in the market.
5. Precision through the global market: Offshoring bookkeeping and accounting is a great way to attract a global talent pool. This strategy offers small CPA firms access to specialized skills with a diverse range of expertise. The team isn’t confined by limitations; the offshore team helps draw insights from a variety of economic backgrounds. As a global talent pool, with diverse experience come together, it helps in elevating the firm’s capabilities through innovative approaches and in refining the processes for top-notch results.
6. Scaling without constraints: For small firms, scaling is a challenge because of a lot of factors. During peak seasons, there is a sudden surge of workload and small firms often fail to keep up with the increasing demands and needs of the clients. With offshoring bookkeeping, small CPA firms can easily scale up or down to navigate through the fluctuations, allowing them to take up more significant challenges.
How to find skilled employees in offshore teams during peak tax season?
When hiring a team of bookkeeping and accounting professionals through offshoring, it is essential to focus on building one that is ready for all challenges. Here are some strategies to consider for finding skilled employees in offshore bookkeeping teams:
1. Engage with reputable offshore firms: When hiring an offshore bookkeeping partner, make sure to consider their experience and the kinds of clients they have worked with. Organizations like Finsmart Accounting have extensive networks with a portfolio of bookkeepers who match your criteria. These firms also ensure that the team is trained first before they work on client projects.
2. Evaluate portfolio and testimonials: The best way to gauge if an offshore bookkeeping partner is right for your business is by requesting their portfolio, references, testimonials, and case studies. They help determine the offshore bookkeeping partner’s capabilities, experience, and expertise. It is concrete evidence of the skills of the team, which is a must-know.
3. Assess soft skills and cultural fit: If you think long-term with an offshore partner, it is not enough to just assess their technical skills. Always remember they are geographically located differently and come from varying cultural backgrounds. Assessing cultural compatibility helps ensure there is synergy in the team and it can be achieved through clear communication, teamwork, and adaptability.
4. Begin with a trial period: Before committing to a long-term partnership, it is wise to consider an initial trial period while offshoring bookkeeping services. This window allows both parties to understand each other, and evaluate if they are a good fit for each other – work-wise and culturally. This helps reduce the risk in the middle of the tenure and ensures smoother operations.
5. Provide clear expectations and onboarding: Job responsibilities, deadlines, and workflows – it is important to establish clear expectations while offshoring bookkeeping services. Through effective onboarding, training, and communication, firms can integrate offshore teams seamlessly into their daily operations.
It is a matter of time and diligence when it comes to finding skilled employees within your offshore teams. When done effectively, they can contribute significantly towards efficient operation, growth, and success.
Finding the harmony between offshore and in-house teams:
While many small CPA firms fear that offshoring bookkeeping services will put teams out of work, it is far from the truth. Offshoring isn’t a replacement strategy, but helps build a synergy. The collaboration between the in-house and offshore bookkeeping teams helps create a powerful amalgamation, where each team complements the other just the right way.
While in-house teams focus on high-value, client-facing tasks, offshore teams continue with tasks like bookkeeping, payroll, tax, accounts payable and receivable, and consulting. When the teams work together, train each other, and share knowledge, it contributes to the overall growth and success of the firm. This ensures continuous improvement, where both teams evolve together and meet clients’ demands.
A shift of paradigm for small CPA firms – Conclusion
Integrating offshore bookkeeping services requires small CPA firms to make certain strategic shifts in the operation where the in-house team needs to provide adequate training and guidance and the offshore bookkeeping team uses their expertise and advancement in technology to help gain the desired results. The partnership with the offshore teams ensures efficiency and easy scalability through the collaborative approach. Offshoring is, after all, a strategic imperative for those who aim to thrive in the ever-evolving financial landscape.
Have more questions about outsourcing bookkeeping? Write to us at connect@finsmartaccounting.com.
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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.
