No matter the size of the business, in the accounting sector, non-core activities like bank reconciliation often take a back seat. As CPA firms continue to focus on their growth and scalability, the leaders prioritize core functions that help generate revenue. As an accounting service provider, small CPA firms are posed with certain challenges.
Firstly, when it comes from the clients, the firms can’t ignore the task of bank reconciliation. They have to prioritize this task as much as the other core jobs. Secondly, this is a huge mistake. When the accounts aren’t reconciled properly, it adds up to the complexities and fraudulent activities can go amiss.
When businesses trust small CPA firms with their bank reconciliation jobs, the question that the firms need to ask themselves is if they are equipped with that kind of expertise or if they have the bandwidth to do so. CPA firms, who are constantly on a path of growth, need some extra help to deal with tasks like this. A specialized offshore partner, equipped to deal with tasks like bank reconciliation, can help small CPA firms scale while helping clients succeed.
In this blog, Finsmart Accounting – trusted globally for accounts outsourcing services – will share how outsourcing can help CPAs and accounting firms streamline bank reconciliation.
Offshoring as a strategic solution for addressing bank reconciliation concerns:
Over the past few years, offshoring has become a strategic solution that helps reduce the burden of bank reconciliation from the shoulders of small CPA firms. The advantages of offshoring are multi-faceted. Offshore partners are equipped with the latest accounting software and technology that helps automate tasks like this and a team of experts who dedicate their time and efforts to ensure accurate delivery.
Now, let’s learn how offshoring can help simplify bank reconciliation.
How can you simplify bank reconciliation with offshoring?
Offshoring partners like Finsmart Accounting have a wide range of experience in bank reconciliation, accounting, and bookkeeping. They help in executing the process of ensuring the accuracy of the client’s financial records. Offshoring helps in streamlining and simplifying bank reconciliation. Here’s how offshoring can help simplify bank reconciliation:
1. The offshore partners help leverage modern accounting software to automatically import transactions and match them with the relevant entries in the accounting system.
2. The team of experts set up bank feeds that are automatically connected to accounting software to import transactions. This is especially helpful for a high volume of transactions.
3. Offshoring teams also categorize transactions based on pre-set criteria to reduce the risk of errors.
4. Since offshore partners have teams dedicated to performing tasks like bank reconciliation, they conduct frequent (weekly/biweekly) bank reconciliation to make the process overwhelming. They also make sure that the CPA firms are aware of the latest happenings and if concerns need to be addressed.
Offshoring for Enhanced Efficiency and Reduced Stress:
Bank reconciliation, especially during the peak seasons can be stressful. The kind of time and resources needed can bring down the efficiency of the in-house team, burn them out, and lead to errors. Here’s how CPA firms can prevent that by offshoring bank reconciliation:
1. Increased speed and efficiency: When you offshore bank reconciliation, you get a dedicated team of professionals who would focus on the major tasks . The round-the-clock operations and a team with solid expertise, make the processes more efficient, leading to quick turnaround times. Since the offshore teams are experienced, they ensure the timely completion of tasks, reducing the stress of strict deadlines for the in-house teams.
2. Allows the team to focus on core competencies: Tasks like bank reconciliation are repetitive and when the in-house teams have to perform these tasks, it causes burnout. When you offshore tasks like bank reconciliation, you allow time and space for the in-house teams to perform jobs that are more important, strategic, core, and drive revenue. That way the stress levels of the team remain in control and they feel that they feel they are adding value.
3. Round-the-clock and time zone advantages: With offshoring, work happens round-the-clock. The continuous workflow helps speed up the reconciliation process. The tasks are carried out in the off hours, ensuring progress is made when the local team isn’t active.
4. Reduced administrative hassle: For in–house teams to perform bank reconciliation, there are additional administrative expenses. This includes investment in resources and software, training them, and dealing with HR-related activities. By offshoring this task, CPA firms can streamline the responsibilities and minimize the stress of the management, allowing them to focus on overall growth.
Now, let’s learn about the technical benefits of offshoring bank reconciliation!
Technical benefits of offshoring bank reconciliation:
Bank reconciliation is a critical process in keeping the finances of your clients safe. On-point scrutiny of each transaction has its own share of benefits and below are some of them:
– It helps identify and prevent fraud before it is too late
– Accounting errors are inevitable. Bank reconciliation helps spot any discrepancies or errors
– It helps reduce the risk of overdraft as it gives a clear picture of the financial status
– With the number of transactions businesses witness daily, it might get hard to keep track of uncollected receivables
Businesses need to understand and keep track of the incoming and outgoing funds. Bank reconciliation ensures that each transaction is valid and helps leaders attend to the parts that need attention. Outsourcing bank reconciliation jobs helps CPA firms stay on top of any situation. This also helps CPA firms free up time to run the business and perform jobs that make a difference.
Streamlining Bank Reconciliation with Offshoring
Offshoring bank reconciliation is a strategic decision for small CPA firms. It helps them navigate through the complexities of financial terrain while saving time and managing stress for the teams. By leveraging offshoring, small CPA firms expedite the process, while maintaining accuracy. This approach helps streamline processes and maintain a high quality.
Want to outsource your bank reconciliation activities? Talk to the expert team 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.
