Can Outsourcing the Big-A Save CPA firms from the ‘Great resignation’?

Despite losing some steam in September, the ‘Great Resignation,’ in which tens of millions of Americans left their jobs during the pandemic, is still very high at 4.06 million. With over  4 million Americans voluntarily putting down their papers in 17 of the past 19 months, quits have now exceeded the pre-pandemic high. On average, one in three companies loses their top performers at some point in time. Businesses taking thoughtful and strategic steps to retain talent are getting their money’s worth more than those who don’t.

Many factors resulted in the great resignation, and many CPA firms are now running out of time to cope. Outsourcing crucial functions like auditing can give you a competitive advantage, improve your brand value, and help you survive this situation.

Outsourced audit support services can be a great growth strategy in such times, given how it can decrease the pressure on CPA firms and increase their competitiveness. It has advantages for firms in preparing them for such uncertainty, especially when clients’ requirements keep changing. Offshore audit support services allow firms to focus on strategic and financial planning, while outsourcing specialists focus on client management. Providing this high level of expertise minimizes the need for the CPA firm’s time and increases efficiency.

The ‘great resignation’ is a real threat to personal and professional life. The key factors that contribute to the great resignation in the accounting sector:

POOR CAREER DEVELOPMENT PROGRAMS FOR STAFF

This is one of the most common reasons why people leave their job, affecting not only those who have been there for a long time but also young professionals just starting their careers. Suppose you do not have any ongoing training or mentorship program at your company. In that case, you should prioritize this area when planning for expansion or growth in your business strategy.

A TOXIC WORK CULTURE

A toxic work culture is reported to be the strongest predictor of industry-adjusted attrition and is ten times more important than compensation. Failure to promote diversity, equity, &  inclusion; workers feeling disrespected; and unethical behavior contribute to toxic work cultures. People also quit when they realize there is no clear vision of how their company wants to grow. Suppose all employees are focused only on making money from clients rather than building relationships with them. This will eventually lead to losing talent because they won’t want anything other than money!

LACK OF A CLEARLY DEFINED CAREER PATH FOR EMPLOYEES

When people know where they are headed in their careers, they will be more willing to stay with your CPA firm and work towards its growth. Suppose you do not have any plan or structure to support this important aspect of your company culture. In that case, this is another area you should focus on when planning for expansion or growth in your business strategy. The lack of opportunities for employees to grow within the firm also makes people leave their jobs. If you do not have any training or mentorship program available for your employees, this will lead to losing talent.

EMPLOYEE BURNOUT & POOR WORK-LIFE BALANCE

Recent research pointed out that burnout could rank higher than pay on what prompts a job change. A better work-life balance is one of the main reasons behind the great resignation. Burnout isn’t just an individual problem; it affects the entire bottom line. It could lead to a rise in errors and an accounting firm’s strategic ability to succeed.

CPA firms considering outsourced audit support services are often met with many questions. Some of these questions include:

• What kinds of costs will I save if we outsource audit support services?
• What kind of quality can be expected when we outsource?
• How do in-house accountants feel about outsourcing audit services?
• Can CPA firms increase their profit margins by outsourcing some or all of their services to another firm?
• Is it more efficient to outsource audit or other non-accounting services?

Is Outsourced Audit Support Services a Solution to the ‘Great Resignation’?

CPA firms are always facing one of the toughest times in their life. Whether you think it has to do with regulatory and compliance requirements, the great resignation, a looming recession, or the new world order, outsourcing could be your answer.

Outsourcing audit support services is a great solution to the ‘great resignation,’ especially for CPA firms because it gives them more time to do what they love and less stress! When one can delegate their work, it frees up their time to focus on other things. Outsourcing can be cost-effective because it allows you to pay only for the job instead done instead of what it takes for the entire recruitment cycle. When we think about outsourcing, we often think about how it will affect our company’s bottom line, but we don’t always realize that it could benefit us personally as well!

1. Addressing the Talent Gap

With the recent mass resignations and companies tightening down, accounting firms have a tough time as they are expected to handle to workload. An outsourcing company can help CPA firms by doing part of their work for them and helping them avoid the long waiting time. Outsourcing is one of the most effective measures taken by CPA firms to address the lack of workforce and increase efficiency in their work. With outsourcing audit support services, firms have become more powerful and able to evolve with the times and offer unique services that help them compete with their peers.

2. Cost Savings

Outsourcing is contracting with a third party to provide a service, task, or activity. It’s been around for centuries but has changed dramatically in recent years. One reason is that outsourcing provides significant cost savings to many CPA firms and professional services organizations. Another is that it allows firms to offer additional products and services while freeing up scarce internal resources.

3. Shifting Focus Towards Growth Alongside Improving Efficiency

Outsourcing allows firms to focus on revenue-generating tasks and expand their service portfolio. Outsourcing will enable firms to make more money because they can pay only for the services available instead of what it takes to hire, train and retain highly skilled individuals. For example, if one of your clients is asking for additional services, you need not stress or handle it yourself. You can delegate the tedious ones and shift focus towards profitable functions. Outsourcing would be a great solution during the great resignation because it helps cut costs while reducing stress, given how experts would take care of everything.

4. It makes Sense in an Economy of Shrinking Payroll Costs

Outsourcing reduces labor expenses while allocating more valuable time to the client’s business. Over the past few years, there has been an increase in cost-cutting across the business sector. This is due to companies’ desire to reduce costs and because cutting costs means the firm can develop and expand faster. The downfall of this approach is that it sacrifices quality for quantity, whereas outsourcing helps reduce quality control costs.

Wrapping Up

A CPA firm must keep up with the growing changes and continuously look for new ways to reach out to its clients. Outsourcing is one way to serve your clients and a must-have for you to survive in this ever-changing and competitive environment.

Outsourcing is a significant benefit for firms in the recession and beyond. The clients they serve and employee retention rates are two very important areas where outsourcing can be beneficial. Outsourcing audit support services allow CPA firms to remain competitive by taking the workload of their clients off their shoulders, freeing up more resources to focus on other client matters, and continuing to provide value in terms of talent, quality, and innovation.