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Are Outsourced Accounting Services a Threat to Local CPAs?
Competition is pervasive irrespective of the nature and size of the industries and the same goes with the CPA accounting industry as well. Changing times and technological advancements have created FOMO among the local CPA firms. Initially, it was only the popular accounting brands operating like the retail chain, but now we have online accounting companies to make competition fiercer. Rather than thinking of it as a threat, smart CPAs must be keen to develop a strategic partnership that helps to enhance their service and improve profitability.
Routine bookkeeping tasks
The daily accounting tasks include basic data entry, journal entry, adjustments, monthly reports, reconciliations, and strategic planning. Some tasks require more professional expertise than others. Large accounting firms or corporate firms have different levels of salary between a position to reflect that.
For a small CPA firm, it is not financially feasible to hire junior staff members. CPA accounting firms have the option to either go for a freelancer or part-time bookkeepers which means risking your client’s financial information with untrained personnel. Or CPA may be risk-averse to handle the task at cheaper rates while composing the capacity to take a high level of work.
CPA outsourcing services provide scalability to CPA firms to delegate routine tasks without worrying about laying off the staff in lean seasons.
Tax preparations:
Like bookkeeping, preparation of tax includes computation of various numbers, math, and tax planning strategy. The more time you spend on the paperwork, you are left with less time to strategize the maximum possible deduction for clients. Many CPAs might suggest their client do their bookkeeping on their own, but the client may possess the necessary expertise. CPA outsourcing services help to fill the gap for you.
It allows CPAs more time to focus on clients’ business and help them. They can provide an advanced level of service, and grab more clients in the future.
Additional Checks and Review
Even the best people sometimes make mistakes as human errors are inevitable. Thus, it’s better to find out the error before the client suffers.
When you do things on your own, you might miss a mistake while reviewing a document because you just have a glance rather than focusing on what it actually says. Or you might be missing a rule applicable in a specific situation.
These types of risks and errors can be reduced when you are backed by review by the second set of eyes either online or offline. It makes sure that the client’s financial data goes through additional checks and reviews.
Safe and secured data storage
If you work offline, how do you collect client information? Is it thoroughly inconvenient office visits or via snail mail? Are crucial and sensitive data sent through unsecured emails?
There has been an increase in online theft and corporate espionage, but many CPA firms lack the expertise or budget to have a safe and secure data transfer facility. However, CPA firms don’t need to worry about the risk of theft of data. CPA outsourcing service providers invest in data encryption and security technology. Partnering with them allows local CPA accounting firms to combine expertise and knowledge with their technology and efficiency.
Are you thinking about how Meru Accounting can support local CPAs? Connect with our team members to know more.[/vc_column_text][/vc_column][/vc_row]
