Outsourced Bookkeeping Services: Can It Really Increase Your CPA Firm’s Productivity?

Maintaining bookkeeping up to date is one of the most important daily routines for most businesses. Since hiring, training, and establishing an accounting division can be costly, accounting firms whose core competency doesn’t include bookkeeping often outsource bookkeeping to third-party companies. Outsourced bookkeeping services eliminate the need for an accounting division while having access to professional bookkeeping services at almost half the cost.

For several reasons, CPA firms are looking to outsource accounting tasks like bookkeeping. Besides talent shortage and other staffing issues, CPAs are facing several challenges, including the plausible return of the pandemic, a shift in working models, inflation, attrition, and the growing competition in the market.

If your in-house accounting team cannot attend to your client’s financial matters, that’s when bookkeeping outsourcing plays a role. End-to-end responsibilities pertaining to your books are handled by your contracted staff, who will be doing it for an agreed-upon period. You can access professional bookkeeping services without overhead costs in such a partnership. By outsourcing your bookkeeping services, you can avoid the associated costs involved in the recruitment process and tenure, including health insurance & other benefits, infrastructure, and training costs.

What does Outsourced Bookkeeping Services Cover?

With outsourced bookkeeping services, your accounting firm unlocks a plethora of services such as the following:

• Track expenses/revenue: Professional bookkeepers will be recording all financial transactions into a ledger or accounting software and will keep the books up to date for your clients
• Manage AP/AR: managing accounts payable and accounts receivable is one of the critical tasks. They keep track of what your clients owe their vendors and what their customers owe them, so they do not lose out on due money.
• Handle payroll reconciliation: monitoring taxes and calculating the wages of your client’s employees alongside appropriate deductions. This step also involves ensuring that the net salaries are paid to their employees on the required due dates.

Why Should You Opt for Outsourced Bookkeeping Services?

Accounting firms know maintaining bookkeeping operations get increasingly challenging given the administrative expense of running them. Not only does bookkeeping outsourcing take back that valuable time to focus on running strategic processes, but it also helps identify new growth opportunities and relieves you from the stress of tedious tasks. With outsourced bookkeeping services, you also enjoy access to essential reports and financial statements, including balance sheets, income statements, cash flow statements, etc. Moreover, having your firm’s bookkeeping taken care of by a professional expedites the tax filing process.

Cost & Time Savings:

Let’s face it; bookkeeping is one of the most time-consuming tasks that require a lot of commitment and aptitudes. Moreover, it costs the salary and benefits of an in-house accountant alongside the infrastructure, the software, and the benefits. There’s no question that an outsourced bookkeeping service will help save your business time and money. With outsourcing, you will be paying less than the salary of in-house bookkeeping professionals. Do the math- see how much money you will be saving! And outsourcing also saves you a lot of time that you can invest in strategic planning and other activities that can help your firm scale.

Efficient, Certified, and Trustworthy Expertise:

When you outsource, a full-charge bookkeeper from your third-party provider will coordinate with members of your client’s management from other departments to approve purchases and gather expense reports. These qualified and certified bookkeeping professionals have extreme organizational, management, and math skills, as well as people skills, to make this work.

Reduce Errors and Increased Precision:

Unlike in-house bookkeepers, you do not have to bear any margin of error. With outsourced bookkeeping services, there is higher precision as the services are backed by certified professional accountants who work on the zero error principle. They also have access to cutting-edge accounting technology with which they prepare detailed financial models with a comprehensive range of data.

Better Process Optimization

Automation assists accounting firms in streamlining the workflow and can also help determine shortcomings. It intimates if there are any payment delays and adds value to your firm by constantly improving the workflow.

The Advantage of a Full-time Equivalent Bookkeeper:

Imagine onboarding a bookkeeping expert with several years of experience who is well-versed and proficient in a wide range of bookkeeping tools. And all of this comes at an easily affordable price. Although this professional works for your accounting firm full-time but will not be on your payroll, and you won’t have to bear any infrastructure costs. With outsourced bookkeeping services, you will experience such an advantage: building a team of certified professionals at a far lower price than an internal employee’s salary.

Bottom Line:

Placing your accounting firm’s financial books in the hands of a dedicated team of professional bookkeepers who are up to date with the best practices helps make the job easier and more efficient. Outsourcing enables CPA firms to offer bookkeeping services from skilled professionals without worrying about training or deploying additional staff. Third-party service providers leverage the integration of best practices and process optimization, impacting your firm’s profitability and increasing productivity.

Outsource Your Firm’s Bookkeeping Process to QXAS

Let our offshore team help you save time, effort, and money while increasing your firm’s scalability, speed, and efficiency. QXAS helps mitigate potential financial risks and pressure as we understand your unique requirements. Armed with the latest accounting & financial technology, we bring you increased operational efficiency, agility & flexibility, and flexible engagement models at a reduced administration cost.

Why QXAS?

• Onboard highly talented offshore bookkeepers with a minimum of 5+ years of experience within 48 hours
• Save up to 50% on your bookkeeping tasks & increase profits.
• Scale your accounting firm by adding certified, dedicated, outsourced bookkeepers to your team
• Use saved time to explore new growth avenues and increase scalability
• Choose your preferred engagement model
• No more worries about data security concerns as our offshore bookkeepers leverage an IT infrastructure with ISO 27001:2013 certification for information security management systems.