Do you find yourself struggling with handling rising bookkeeping demands while balancing important tasks of a CPA? This is quite common. For many CPAs who face the same challenge, to outsource bookkeeping is an easy solution that eases the burden of doing repetitive tasks and instead, focus on core business needs.
According to study, more than 59% of companies outsource the majority of their routine service requirements. In this guide we’ll see about, Why it is important to outsource bookkeeping needs, the benefits of outsourcing over having an in-house bookkeeping service and the various methods of outsourcing.
Let’s get right in.
What is Outsourcing Bookkeeping for CPAs?
Outsourcing bookkeeping services for CPAs means that CPAs rely on outside professionals who take care of the necessary financial processes, for instance, tracking the expenses or completing various reports. This enables the CPAs to enjoy a number of advantages such as customized services, affordability, improved technology and so on.
Ways In Which CPAs Can Outsource Bookkeeping
Depending on the circumstances, outsourcing bookkeeping can mean slightly different things when you are a CPA with a number of choices available to you. Let’s see the three main types:
Outsourcing
In outsourcing, you hand over bookkeeping tasks to a third-party provider, either domestically or internationally. This external organization manages your financial data as they see fit, offering flexibility and efficiency without geographic limitations.
Offshoring
Offshoring means that you delegate your bookkeeping to another country mainly with an intention of cutting costs. You retain complete operational authority although your offshore team is located in another country, for instance, perhaps in India or the Philippines.
Onshoring
Onshoring keeps your bookkeeping within the same country. You reassign your accounting duties to a different city or region, avoiding cultural and linguistic challenges, yet still leveraging external expertise.
Benefits of Outsourcing Bookkeeping for CPAs
Now let’s have a look on the major benefits of outsourcing bookkeeping for CPAs:
- Time Saving: Less time required in re-inputting the data collected and more time to be devoted to the consultancies to be provided to the clients.
- Cost Efficiency: Lower the overhead expenses by outsourcing rather than having a staff that would require to manage the accounts department.
- Scalability: In the case of CPA firm growth, you do not have to recruit more persons to work for you because you can always increase the number of bookkeeping services. Knowledge on how to get bookkeeping clients can also add to the success of the firm and ensure constant traffic.
- Expert Access: Employ competent bookkeeping personnel without the costs of recruitment, training, and monitoring that is required for employees in the organization.
- Improved Accuracy: This means that outsourcing the services of your bookkeeping helps in ensuring that your bookkeeping is done professionally with very little errors.
- Advanced Technology: Get the benefits of upgrading to software for accounting firms without having to spend on the latest technology.
- Client Focus: Relieve your firm from these tedious and time-consuming duties to achieve better and quality client services.
Comparison of Leading Outsourced Bookkeeping Services for CPA Firms
As it concerns outsourcing bookkeeping in CPA firms, the main advantage is on the cost slicing section. But, the selection process of a provider is very crucial because it determines the nature of operations of the firm and even the kind of services to be offered to the clients.
Also having a bookkeeping service agreement template can streamline the onboarding process with your clients and ensure clear expectations. Here are top 5 options to consider:
1. TeamUp
TeamUp connects CPA firms with skilled accountants from the Philippines, maintaining control over hiring and team dynamics. This option eliminates ongoing BPO fees and provides a platform for seamless team integration.
- Direct hiring with control
- No BPO management fees
- Tailored to your firm’s needs
- Access to skilled accountants
- Ideal for long-term partnerships
Pro Tip: Learn more about how to build or improve your accounting firm's tech stack.
2. TOA Global
TOA Global offers a robust offshore model with a large team based in the Philippines. It provides a range of services and allows firms to train their hires on specific accounting systems.
- Large, dedicated team
- Flexibility in hiring
- Modern software integration
- Comprehensive accounting cycle support
- Cost-effective compared to onshore
3. Botkeeper
Botkeeper combines outsourced bookkeeping with a powerful software platform. It automates bookkeeping tasks and provides real-time tracking and collaboration tools, streamlining the process for CPA firms.
- Automated bookkeeping tasks.
- Real-time tracking and collaboration.
- Integrated with popular accounting software.
- Focused on bookkeeping, not other services.
- Primarily serves the US market.
4. Upwork
Upwork is an online platform to outsource bookkeepers through project bases so that they can get projects on time. It is convenient but the reduction of employers’ control can lead to poor outcomes unless suitable talents are hired.
If you are keen on increasing the organization’s or client’s project management skills, the knowledge about the 10 best project management software for accountants can be useful to reorganize the work and improve its productivity.
- Flexible hiring options.
- Large pool of freelancers.
- Project-based engagements.
- Cost-effective solutions.
- Requires thorough vetting.
5. QuickBooks Live
QuickBooks Live provides outsourced bookkeeping solutions through the functionality of Intuit, QuickBooks partners. It is a good solution for firms who heavily employ QuickBooks and it is intended for small businesses mostly. Cone is considered the best small business management software, providing comprehensive solutions tailored to meet the diverse needs of small businesses.
- Seamless QuickBooks integration.
- Live support and bookkeeping.
- No long-term contracts required.
- Available on an as-needed basis.
- Targets small businesses primarily.
Key Considerations When Outsourcing Bookkeeping?
Outsourcing bookkeeping can be a smart choice for CPA firms facing:
- Rapid business growth, where managing increased transactions becomes overwhelming.
- Lack of in-house expertise, ensuring accuracy and compliance through professionals.
- Time constraints, allowing focus on client service and strategic priorities.
- High staff turnover, providing stability and consistency.
- Desire for cost savings, reducing expenses compared to hiring full-time staff.
- Need for specialized services, accessing experts for complex tasks like multi-currency transactions or regulatory compliance.
- Recognizing these signs can help CPAs decide if outsourcing is right for their practice.
Pro Tip: If you are a firm trying to grow by acquiring another practice, do go through a detailed, step-by-step guide on how to buy an accounting practice.
How Can Cone Help CPAs ?
Cone offers:
- Essentials: $8 or £6.41/month
- Growth: $11or £8.83/month
Outsource bookkeeping requires efficient client collaboration software.
Cone’s practice management software keeps everything organized, from task management to communication. It helps you monitor outsourced tasks, set reminders, and ensure smooth workflows. With Cone, you can confidently manage outsourcing processes, ensuring your firm runs seamlessly without missing a beat.
Boost Your Firm's Potential Today
Sourcing of bookkeeping services produce a number of benefits to CPA firms and these include; saves a lot of costs, increase accuracy and free up the CPA firms from pertinent strategic work. Thus, with the proper practice management software, outsourced services are not a problem at all to manage.
One solution that stands out is Cone. Cone is an excellent choice for firms looking for robust accounting client management software that enhances efficiency.
Try Cone for free today!
FAQs
1. Do CPA firms need bookkeepers?
Yes, For example, CPA firms rely on bookkeepers to attend to such mundane matters as bookkeeping and accounting so that CPAs can concentrate on financial matters and consultation services.
2. Can a CPA do bookkeeping on the side?
Of course it is possible for a CPA professional to devote time as a bookkeeper, however, the time must be properly scheduled to undertake both bookkeeping and other more complex accounting services.
3. Should you outsource your bookkeeping?
Outsourcing the bookkeeping means cost benefits, professional resources, time to concentrate more on the high-value and core services.
4. How much does an offshore bookkeeper cost?
An offshore bookkeeping service charges in a different way and it can range from $300 to $1,200 per month.
5. What are the benefits of outsourcing bookkeeping for CPA firms?
Advantages which may be looked at include, overhead cost is reduced, skilled persons, no need to hire more employees if the services are needed more and so on.
6. How can outsourcing bookkeeping improve efficiency for CPAs?
Regarding bookkeeping, outsourcing leads to increased efficiency in automation of routine processes, reduces paperwork, and allows management and practical working time for more significant value – adding activity and meetings with clients.