All You Need to Know About Outsourcing Staffing For Accounting Firms

Financial and accounting services are critical components of any firm. Thus, accounting firms and staff are responsible for carrying out their duties with the highest care and attention.

After realizing the importance of accounting work, some CPA firms in the United States are implementing alternative hiring models to generate perfect accounts, such as outsourcing accounting staffing.?

But what exactly is this kind of outsourcing? Let's dive in!

What is Outsourcing staffing in Accounting??

Remote staffing for accounting firms refers to professional accounting firms such as Bestarion that give technical solutions to small, medium, and big corporate accounting organizations. Accounting firms can assign specific sections of their work, such as Bookkeeping, Payroll and Tax Preparation, to outsourcing teams or the whole work of an entire department.?

Most US accounting firms are looking forward to outsourcing staffing solutions because, despite being vital work, accounting is still not a core operation for various businesses.?

Accounting, for example, will not be an essential task for a company that manufactures socks, but it will still be crucial. As a result, these organizations hire accounting firms to handle their job, which increases their workload, and they seek solutions in the form of outsourcing staffing.?

Is there a shortage of accountants in the US?

The United States Bureau of Labor Statistics (BLS) estimates that 136,400 accountant and auditor vacancies will be created annually over the next decade.

This could result in a competitive job market for top personnel, and the longer the scarcity persists, the more significant the impact.?

A dearth of accountants could lead to a drop in business accountability and honesty. This could entail more fraud and compliance difficulties. Even minor accounting errors can cause a company's stock price to fall, resulting in further financial troubles.

Here are some concrete examples of how a lack of accountants may affect businesses:?

• Delayed financial reporting: Businesses may have difficulty finding qualified accountants to prepare their financial statements, which could lead to delays in reporting. This could make it difficult for businesses to obtain loans or make strategic decisions.
• Increased compliance risks: Businesses may only be able to comply with all applicable regulations if they have enough qualified accountants. This could lead to fines or other penalties.
• Fraud: The shortage of accountants could make it easier for businesses to commit fraud. This is because there may be fewer people to detect and investigate fraudulent activity.
• Stock price volatility: Even minor accounting errors can cause a company's stock price to drop. This is because investors are concerned about the accuracy of a company's financial statements. If there are too many accounting errors, investors may lose confidence in the company and sell their shares, which could further cause the stock price to drop.?

The accountant shortage is a major issue that could substantially impact firms. Businesses must address the problem by giving competitive pay and perks to attract qualified accountants. They should also invest in training and development initiatives to assist current staff in developing the skills required for accounting success.?

Benefits of Outsourcing Staffing for Accounting Firms in the US?

Because the accounting industry is so competitive, CPA firms must maximize their revenues as soon as feasible. Profit is among the most important factors in accounting firms' growth and expansion. Working with an outsourcing partner located in a country like India, Philippines and Vietnam with lower labor costs is one of the most successful strategies for accounting firms to achieve profitability.?

However, cost efficiency is a relatively limited benefit of remote staffing for accounting firms, as numerous other undiscovered benefits are lurking beneath the recruiting strategy for offshore staffing organizations in the United States.?

1. You won’t lose a potential client

The best thing about hiring an outsourcing partner is having a dedicated, qualified, expert offshore team at your beck and call. Therefore, your ability to handle bookkeeping and accounting work increases tenfolds. Additionally, if you hire outsourcing accounting services from different time zones like Vietnam and the US, you can provide around-the-clock services.?

So, if you receive an urgent call from your client, you can instantly take up their work as you have a backup team to support you. This will eventually increase the profit and reputation of a new accounting company among the clients.?

2. Reduce fear of losing employees

If you have been in the accounting business for a long time, then you must know how hard it is to find a competent employee and how difficult it is to retain good employees in this competitive industry. Companies sometimes have to bear a huge loss if their accountant quits. This blow will be even more challenging for small and medium-scale companies as they must urgently hire new accountants by paying extra money.?

But, if you have an offshore accounting team, you don’t have to lose your work even if your in-house staff quits without prior notice. That’s because offshore accounting companies have support from various accounting professionals to tax experts. You need to contact them for specific services, and they will instantly provide that.

3. High-end quality check

Accounting is a delicate job – a single wrong entry or miscalculation can cause trouble. Business organizations trust the services of professional accounting firms only because they are frustrated with the number of errors and reviews needed in their in-house accountants’ work. But, when professional accounting firms dump lots of work on their in-house staff, they cannot pay the required attention to work, which gradually increases the level of errors.?

But it’s good luck that outsourcing staffing for accounting firms can eliminate this problem as you can be more stringent with your service provider and demand quality and efficient work which was mutually agreed upon. With this service, accounting firms can enhance their operational productivity and business profit.

4. Offer something extra to your clients

If you always want to grow your accounting business and want to offer some additional services to your clients like auditing, tax preparation, payroll, etc., Then, you might need more time, a limited budget, the unavailability of experts, and several other factors.?

But you can know to provide extra services to your clients by offspring. Such as, if you want to supply tax preparation services to your clients during tax season, then you can provide offshore service for a limited time only and offer complete financial solutions under one roof.

Read more: A Ultimate Guide to Tax Preparation Outsourcing for CPA Companies .

5. Hire offshore staff suiting your business cycle

Typically, businesses have accounting and bookkeeping workloads for a specific duration as per their business cycles that eventually depend on their business structure. For instance, banking and finance organizations have a heavy accounting workload at the end of the financial year as they have to close all accounts.?

So, outsourcing accounting services for such businesses allows accounting firms to easily handle the extra workload on a particular period without increasing the staff. This will offer accounting firms flexibility but isis hard to achieve.

6. High profitability without extra efforts

The prime idea behind outsourced accounting tasks for accounting firms is to make more money by reducing some expenses without disturbing the workflow and putting in more effort. In this hiring model, you reduce some costs by cutting down overheads like part-time wages and other departmental overheads.

This allows accounting business owners to utilize their free time to create marketing ideas to promote their business. By outsourcing work, accounting firms can increase their business profit in multiple ways.?

Key factors to consider while choosing an Outsourcing partner for your Accounting Firm

When choosing an outsourcing provider, accounting firms should consider several key factors to ensure they select the right offshore partner for their needs.

Cost

Outsourcing staffing can be a cost-effective way to access specialized skills and resources. However, it’s essential to compare the cost of offshore staffing to hiring in-house staff. You should also factor in training, communication, and management costs.

Quality of service

The quality of the service provided by an outsourcing provider is essential. You should ensure the provider has a good track record of delivering high-quality work. You should also check the provider’s references and ask for samples of their work.?

Flexibility

You must ensure the outsourcing team is flexible enough to meet your needs. You should be able to scale up or down your workforce as needed. You should also be able to change the type of work that you outsource as your needs change.

Reliability

The outsourcing provider should be reliable and responsive. You should be able to reach them when needed, and they should be able to deliver on their promises.?

Security

The outsourcing partner should have robust security measures to protect your data. You should ensure that the provider has a secure infrastructure and follows best practices for data security.?

Time zone difference

If you are in a different time zone than the outsourcing partner, you must ensure that the time difference will be acceptable. You should be able to communicate with the provider during your working hours, and they should be able to deliver on their promises on time.?

Language barrier

If you need to become fluent in the language of the outsourced accounting partner, you need to make sure there is a way to communicate effectively. You should be able to communicate with the provider in your language or have access to a translator.?

Cultural differences

There may be cultural differences between you and the outsourcing team. You need to make sure that these differences do not create any problems. You should be aware of the cultural norms of the provider’s country, and you should be respectful of these norms.?

Legal implications

You need to ensure there are no legal implications to outsourcing your work to an outsourcing provider. Please check with your lawyer to ensure that you comply with all applicable laws.

By considering these points, businesses can select the best partner that meets their needs and helps them achieve their goals.?

How much can you save with offshore staffing?

The amount of savings that can be achieved with outsourcing staffing will vary depending on several factors, such as the size and type of business, the specific roles being outsourced, the location of the offshore staff, and the level of experience and skill required for the job. However, it is estimated that businesses can save up to 60% on labor costs by outsourcing jobs to countries with lower labor costs.??

In general, offshore staffing can save costs in several areas, including labor costs, taxes, benefits, and overhead expenses. For example, businesses can hire skilled workers in countries with lower labor costs and pay them lower salaries than they would for equivalent positions in their home country.

Additionally, offshore staff may require a different level of benefits or insurance coverage than domestic staff, further reducing costs.?

Conclusion

Outsourcing accounting tasks to a trusted partner can open up a box of benefits for accounting firms by which they can increase their profit, flexibility, and productivity without putting in the extra effort.

Now, whether you want to hire offshore staff to handle the work of your entire accounting department or one particular job, you can contact Bestarion and get a deep briefing from our managers. Feel free to contact us via email at [email protected] or call this number (+84) 349 600 819