In recent years, due to the popularization of digital solutions and the increasingly widespread use of the digital space, outsourcing has risen to gradually become a common practice. As companies and firms move to the digital space it has also become common for them to start remote work. This is why firms have also started to outsource a lot of their work to different outsourcing companies. Out of these bookkeeping, accounting and finances are also being outsourced.
In this blog, we are going to break down outsourced finance and accounting operations, how it works and what are the reasons CPA and Accounting firms should consider outsourcing their clients’ finances and accounting operations.
First, let us find out what outsourced accounting is and what the companies that provide it do.
Outsourced accounting is a service offered by financial and accounting outsourcing companies. Such companies offer a vast and wide range of accounting and financial services that act just like an in-house finance and accounting department. Such outsourcing companies are third party agencies or companies that can complete the accounting and financial functions of CPA and Accounting firms, agencies, organisations, and also individuals.
A CPA and Accounting firm can hire such a company and partner with it to offload their entire accounting and financial workload onto them. With their expert teams and specialised services outsourcing companies are built to share the workload and deliver quick and efficient results.
Usually, due to their experience in the field, outsourcing companies also end up advising agencies on their finances and proving them with valuable solutions and suggestions to upgrade their accounts.
A financial and accounting outsourcing company offers many services like day-to-day transactions, accounts payable, accounts receivable, payroll, financial management, bookkeeping, tax work, tax preparation, financial reports, general accounting, managing accounting operations, and much more.
Now that we know what a financial and accounting outsourcing company does, lets us find out why CPA and Accounting firms should hire them.
For any CPA and Accounting firm, agency or individual proprietor, the prime focus would be their daily operations. They also have to deal with workplace hassles, maintaining employees, competition, lack of resources and much more. All of this leaves little time for them to deal with their finances and accounts. This can prove to be costly for them in the long run. Overlooking the financial and accounting needs of your firm can prove to become a serious issue.
Partnering with a financial and accounting outsourcing company can be a solution for all these problems.
Here are a few reasons why CPA and Accounting firms should hire a financial and accounting outsourcing company:
Maintaining an in-house finance and accounting team can be a hassle. Firms need to recruit, train, maintain, and retain a qualified team of employees. This not only takes up time but is also an expensive venture. Whereas when a firm partners with a financial and accounting outsourcing company, they get the help of a team of specialists whose sole purpose is to manage finances and accounts. They solely exist to do the very service they provide. When work is outsourced, an in-house team need not be maintained or trained, which will save time as well as costs. Furthermore, the results delivered by the financial and accounting outsourcing company will be of high quality due to their expertise in the field, which will result in an overall rise in efficiency.
A financial and accounting outsourcing company is a company whose focus is only on finance and accounting. As such they are up to date about all the latest tools, techniques, and technologies used in the industry. They use the same latest techniques when hired by a CPA and Accounting firm, agency, or business. This way the hiring firms get access to the latest techniques as well.
Furthermore, financial and accounting outsourcing companies consist of expert professionals who possess up-to-date knowledge of everything related to finance and accounting operations and hence provide top-notch services to their clients. This way the hiring firm gets access to specialised expertise as well.
Any firm or agency comprises of many different departments and services. The business needs to focus on each of these equally to function with stability. This means that to grow and scale a firm has to put in efforts that it cannot put if it continuously needs to focus on the finance and accounting departments. Hence, by partnering with a financial and accounting outsourcing company, firms will have the opportunity to focus their efforts on strategic initiatives aimed towards the growth of the business. In this sense, a financial and accounting outsourcing company will allow the CPA and Accounting firm that hires it to flourish and scale.
When a financial and accounting outsourcing company is hired by CPA and Accounting firms, they provide them with a vast range of financial and accounting services that take care of all their accounting needs. Furthermore, since the outsourcing company specialises in those services, the hiring firm gets access to the help of experienced and qualified accountants that end up simplifying their accounts and finances. The outsourcing company provides high-quality tax services that allow any improvements needed to be made. This also ultimately ends up improving the overall financial situation of the hiring firm or business.
Before considering a partnership with an outsourcing company, it is entirely natural for any CPA and Accounting firm or agency to wonder if giving another company access to their private and valuable financial and accounting records is safe or not. Partnering with an outsourcing company is actually safer than hiring a local accountant. Outsourcing companies are built upon the promise of confidentiality. There is virtually no risk in revealing financial information to them.
The company will also help analyse the records of the hiring CPA and Accounting firm. This will ensure and establish credibility and help in detecting and correcting any errors or frauds.
Now you know why partnering with a financial and accounting outsourcing company can prove to be a pivotal decision for any agency or CPA and Accounting firm. Outsourcing companies like Stanfox help firms in every aspect of accounting and finance to facilitate their growth and scalability.
Equipped with a talented, expert, and experienced team of professionals we excel in what we do. Hence, we also help your business excel. On top of shouldering your finance department, we also increase your profit margin and allow you to attract and retain new clients.