Six Benefits of Outsourcing Accounting For CPA Firms

• Reading Time: 3 Minutes
• Published: December 2, 2020
• Last Updated: March 5, 2025

Progress in technology, globalization and changes in regulations pose many challenges to CPA (Certified Public Accountant) firms. One such challenge is to balance the increase in business growth of the firm with the completion of accounting tasks. Outsourcing is the solution to the biggest accounting firms in the US. It helps to make better financial decisions and optimize the returns of their primary competencies.

Several CPA firms desire to offer full-service bookkeeping and accounting to clients but are short of manpower to handle this. The attention and time needed to stay on top of daily accounting tasks of   can drain resources and time needed for the firm’s daily operations.

Many CPA firms thus use outsourcing of accounting to offshore professional accounting firms. When they sign on with the latter, the offshore company will work behind the scenes to manage bookkeeping and accounting functions for clients, and the CPA firm can take the credit.

The following are additional benefits of outsourcing accounting:

Access To The Latest Technology

Similar to all other domains, technological changes are impacting the accounting industry also. The majority of CPA firms cannot afford the latest technical tools. But outsourcing companies invest in the latest technologies through which they can reap many benefits. Outsourcing of accounting operations ensures that experts handling accounting tasks stay update with the latest technology for maintaining a competitive edge.

Cost-effectiveness

This is one of the most relevant benefits of outsourcing. The CPA firm might find it expensive to hire full-time professional accountants. Paying the monthly salary of a professional along with other employee benefits, might become a burden. When accounting services are outsourced, there is no need to incur such overhead expenses. Outsourcing also helps to transform many fixed costs into variable costs and management of payroll, accounts, and bookkeeping can be completed more cost-effectively than in-house. The firm needs to pay the outsourcing provider only for tasks completed.

Scalability

Outsourcing offers a scalable solution to the CPA firm. It helps save the firm from worry about finding temporary resources during peak times of taxation or scale down when the busy season culminates. External accounting companies can be scaled easily as per business needs.

Time availability

When the accounting functions are outsourced, more attention and time can be spent on focusing on company operations most relevant for its growth and revenues. Also, some back-end operations can distract employees. Outsourcing helps to end this problem.

Faster turnaround

When regular accounting tasks are outsourced, the firm can offer quality services within a given frame of time. It can meet all deadlines as the outsourcing partner possesses all the vital resources needed for the timely completionf accounting tasks. The CPA firm can also take up big projects for new clients without the burden of being too busy.

Deal with issues of employee turnover

The CPA firm could suffer when losing staff suddenly. But when accounting tasks are outsourced, there is a team to handle accounting work instead of depending only on a single employee. Quality of accounting is ensured by team members double-checking each other’s work.

These are some benefits of outsourcing accounting functions and most of the US accounting firms are gradually realizing the value of the same.

Save More, Do More With Smart Accounting!

Get customized plan that supports your growth

Explore Pricing!