CPA's Hiring Off-Site Dedicated Employees
Out of the top 10 issues faced by U.S. Accounting firms, 7 problems are related Human Resources. May it be
- High Salary Expenses.
- High Benefits and Compliances in Payroll.
- High Attrition.
- Low Productivity.
- Work Load Pressure.
- High Infrastructure and Operational Costs.
- Succession Crisis.
In order to mitigate all the above problems, many U.S. firms have started hiring Off-Site Dedicated Resources from India, Philippines, and South Africa etc. Out of top 100 firms 30 firms have established their dedicated accounting centre with employee strength ranging from 50 to 1,000 employees in India.Over 250 small and midsize accounting firms from US have hired more than 3000 dedicated employees from Indian Services Providers. (Source: Indian Accounting Association). It is estimated that by 2020 U.S Accounting firms would be hiring more than 100K (Hundered Thousand)Dedicated Employees Off-shore.
Why do CPAs prefer going for Dedicated Off-Site Employee now a days?
With emerging technologies like remote access, cloud and network computing etc. the rules of doing business are being rewritten. The same forces are opening new markets and geographies for accounting firms with all processes based on Clouds and all employees based remotely. Public Accounting firms has changed their ways and started believing in Virtual/Off-shore Employees. They have started leveraging the choice to hire, remotely manage and pay for the skills that they need, whether part time or full time.
Are you Thinking, Hiring Off-site/Virtual Dedicated Resources is only based on the Cost benefits? Well, that may be WRONG!
Here are some key benefits:
LEASE ALWAYS TEASE:
Virtually no one who has leased office space has enjoyed writing that rent check every month. It might have been satisfying at first, when the firm or company was young and having an office was a sign of progress, but watching money go into a landlord’s pocket inevitably gets old. Still, the reality was that for most multi-employee firms, the brick-and-mortar office was foundational to the organization’s existence. Physical presence announced reliability and permanence to current and prospective clients.A physical office also was deemed necessary for employee collaboration and client meetings. Consequently, the monthly lease or loan payment was considered an unavoidable part of doing business. But considering rising infrastructure acquisition and maintenance cost, meeting fees pressure by competitively pricing services, reducing overheads cost, rise of cloud and paperless technologies has changed the mind-set of accounting firms. Virtual/Dedicated Employees has become a reality option to pursue.
For BMRG Accounting, vacating its office and going fully paperless has translated into savings of more than $95,000 an year, said Katrulya, Partner. That figure is in line with the average annual rent of about $100,000 reported by the 2,362 firms polled in the 2012 AICPA Private Companies Practice Section/Texas Society of CPAs Management of an Accounting Practice (MAP) survey. For small and midsize firms, rent and other occupancy costs represented between 6% and 7% of net client fees. With Off-Site Hiring Model your additional infrastructure and related cost turns Zero.
COST DOES MATTER
With hiring Dedicated Employee from countries like India, you can hire best motivated talent and reduce your employee payroll budget by more than 70%! You have an opportunity to Interview & handpick YOUR resources, having full access to their experience and skill levels at hand. Ofcourse it comes with various challenges of communication and know how on policies of firms but ifcorrectly handled having a right service provider, accounting firms can cut down Payroll and Overheads by more than 70% through this flexible hiring model.
EXPAND YOUR BANDWIDTH
After all accounting is people’s business so having bigger bandwidth will always help in delivering the work in the most rightful manner. With affordable resources available, accounting firms will always prefer to expand and invest in the bandwidth so that they can expand the services portfolio.
CONTROL IN YOUR HAND
With this model of hiring employees,accounting firms have complete control over quality standards and essential communications required for successful operations. Also the service provider manage, supervise and review the function on your behalf, so it can complement your existing managerial function too. And with latest time tracking and project management tools every little progress can be tracked and made right from the comfort of your home. In fact, YOU act as the Managerial Heads and resources co-ordinate & report to you as in case of on-site office.
NICE ESCAPE FROM CRUEL COMPLIANCE AND IT COST
As all the resources work for an accounting firm, theyare on the payroll of service provider. So this model of having employee allows accounting firms to expand bandwidth and at the same time avoid all the payroll and HR related oppressive legislation and costs associated with the same. This not only has great impact on the aggregate profitability but also save time and grants great mental peace.
BOTTOMLINE THAT COUNTS
Turn the spotlight on your business model and profit areas. Expanding bandwidth will automatically help you in offering high end and valuable offerings to your clients, so you can stay ahead of you competition.
WORK WITH YOUNG GUNS
Considering the fact that average age of Partner/Owner of an accounting firm is 54 years and that of staff is 48 years as per AICPA survey, severe questions are raised in the areas of work productivity, change in practices through better use of technology, succession planning, and crisis of young talent. Also accounting in US is considered to be the old generation profession as young guys are much interested in tech and consumer facing businesses. Hence hiring offshore employees from countries like India become more obvious choice where accounting is still considered by young as an aspirational career options. Average age of the workforce is 29 years, much lower than that of United States.
And many other benefits includes institutionalising the operations of the firm by expanding bandwidth, better practices, Attrition management by putting the non-core work from your core staff, training and staffing.
Entigrity™ is a trusted offshore staffing partner to over 500+ accountants, CPAs and tax firms across the US and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation or any other task for 75% less cost. As a firm 'run by accountants, for the accountants', Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management, still you are left with least to worry about compliance, payroll taxes, overheads or any other benefits.