It’s 2023 and it no longer makes sense for CPAs and accounting firms to complete all finance and accounting tasks in-house.
As small CPA firms in the USA look to cut costs and improve efficiency, offshoring finance and accounting tasks has become an increasingly popular solution. By outsourcing certain tasks to countries with lower labor costs, small CPA firms can free up resources to focus on core business functions and provide more value to their clients.
In this article, we will discuss the types of finance and accounting tasks that can be effectively offshored for small CPA firms in the USA.
Let’s start!
10 Finance & Accounting Tasks Worth Offshoring
Below are the top finance and accounting tasks that can be offshored by accounting firms and CPAs alike in 2023:
#1 Bookkeeping
One of the most common finance and accounting tasks that small CPA firms offshored is bookkeeping. Bookkeeping involves the day-to-day recording of financial transactions such as sales, purchases, receipts, and payments. By offshoring bookkeeping tasks, small CPA firms can save time and resources, allowing them to focus on higher-value services such as tax planning and consulting.
Offshoring bookkeeping tasks can also provide cost savings of up to 60-70% compared to hiring an in-house bookkeeper in the USA. Additionally, offshoring bookkeeping tasks can provide access to a larger pool of skilled professionals who can provide timely and accurate bookkeeping services.
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#2 Payroll Processing
Another finance and accounting task that can be effectively offshored for small CPA firms in the USA is payroll processing. Payroll processing involves calculating employee salaries, deducting taxes and other deductions, and issuing paychecks. Offshoring payroll processing tasks can provide small CPA firms with significant cost savings while ensuring that payroll is processed accurately and on time.
Offshoring payroll processing tasks can also provide access to a range of software and tools that can help automate and streamline the payroll process. This can help reduce errors and ensure compliance with tax laws and regulations.
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#3 Accounts Payable and Receivable
Accounts payable and receivable tasks involve managing vendor and customer invoices, tracking payments, and reconciling accounts. Offshoring these tasks can help small CPA firms free up resources while ensuring timely and accurate payment processing and account reconciliation.
Offshoring accounts payable and receivable tasks can also provide access to a larger pool of skilled professionals who can help manage the tasks efficiently and effectively. This can help improve cash flow management and reduce the risk of errors and fraud.
#4 Financial Analysis and Reporting
Financial analysis and reporting tasks involve analyzing financial data to provide insights and recommendations to clients. Offshoring financial analysis and reporting tasks can help small CPA firms provide more value to their clients while reducing costs and improving efficiency.
Offshoring financial analysis and reporting tasks can also provide access to a range of software and tools that can help automate and streamline the analysis and reporting process. This can help improve accuracy and provide more timely and actionable insights to clients.
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#5 Tax Preparation and Planning
Tax preparation and planning tasks involve preparing tax returns and providing tax planning advice to clients.
Offshoring tax preparation and planning tasks can also provide access to a larger pool of skilled professionals who can help manage the tasks efficiently and effectively. This can help improve the accuracy of tax returns and provide more value to clients through better tax planning and advice. Read on to discover more accounting and finance tasks that can be outsourced with ease
#6 Audit Support
Audit support tasks involve providing assistance to auditors during financial audits. Offshoring audit support tasks can help small CPA firms reduce costs while ensuring that audits are completed accurately and on time.
Offshoring audit support tasks can also provide access to a range of software and tools that can help automate and streamline the audit support process. This can help reduce errors and improve efficiency.
#7 Financial Planning and Analysis
Financial planning and analysis tasks involve developing financial forecasts and analyzing financial data to help clients make informed decisions. Offshoring financial planning and analysis tasks can help small CPA firms provide more value to their clients while reducing costs and improving efficiency.
Offshoring financial planning and analysis tasks can also provide access to a range of software and tools that can help automate and streamline the analysis and reporting process. This can help improve accuracy and provide more timely and actionable insights to clients.
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#8 Virtual CFO Services
Virtual CFO services involve providing strategic financial advice to clients and overseeing financial operations. Offshoring virtual CFO services can help small CPA firms provide high-level financial expertise to their clients while reducing costs.
Offshoring virtual CFO services can also provide access to a larger pool of skilled professionals who can help manage the tasks efficiently and effectively. This can help improve financial decision-making and provide more value to clients.
#9 Inventory Management
Inventory management involves tracking inventory levels and ensuring that there is enough inventory on hand to meet customer demand while minimizing inventory costs.
The offshore service provider can manage inventory levels, track inventory usage, and coordinate with vendors and suppliers to ensure timely delivery of inventory. By offshoring inventory management tasks, small CPA firms can focus on their core business activities and provide more value to their clients.
#10 Budgeting and Forecasting
This is our last finance and accounting task that can be outsourced with ease. For those who don’t know, budgeting and forecasting involve developing and managing budgets and financial forecasts for clients.
The offshore service provider can work with clients to develop budgets and financial forecasts based on historical data and future projections. By offshoring budgeting and forecasting tasks, small CPA firms can provide their clients with more accurate and timely financial information, enabling them to make informed business decisions.
Smart Offshoring Means More Profitability
There are several types of finance and accounting tasks that can be effectively offshored for small CPA firms in the USA. By offshoring these tasks to countries with lower labor costs, small CPA firms can save time and resources while improving efficiency and providing more value to their clients. However, it is important to carefully evaluate the risks and benefits of offshoring and choose a reputable and reliable offshore service provider to ensure that the tasks are managed effectively and efficiently.
Connect for Accounting Offshoring Support
Finsmart Accounting with its 15 years of outsourced accounting space uses its own proprietary framework called DPPT – Definition, Process, Precision & TAT that has been the success mantra for supporting the firms in the US to stay ahead of the competition.
By partnering with an experienced offshore bookkeeping services provider in India like Finsmart Accounting, CPA firms can access a team of professionals who are knowledgeable about the latest technologies, up to date with ever-evolving accounting norms, and also domain experts in US accounting.
Share your thoughts
Would you like to know more about the DPPT framework or have you or your company worked with offshore accountants during the accounting talent crunch? What was the experience like? Join the conversation below or check out our recent blogs on business growth and offshore hiring:
Have queries to ask? Drop them in the comments or email us at connect@finsmartaccounting.com to get a quick reply from our team of finance and accounting experts.
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