MAXIMIZE YOUR CPA FIRM’S PROFITABILITY WITH ACCOUNTING OFFSHORING
We live in a world where money matters, and more importantly, money speaks. An accounting firm, at its core, like most organizations, is a business. Profitability ensures the continued success of the entire venture, and as the leader of your firm, it's up to you to take steps to ascertain the same.
With all the changes the accounting industry is going through, offshoring has now become quite prominent. Though offshoring is far from a new phenomenon, its popularity in the accounting industry is relatively new. It has gained tremendous popularity in recent years, so much so that the global finance and accounting outsourcing market is estimated to reach US$ 53.4 Billion by 2026.
In this article, let’s learn more about offshoring and understand how it can be the perfect tool to enhance your firm’s profits in 2023!
In case you have never heard about offshoring accounting before, here’s a summary…
Offshore accounting is outsourcing financial and accounting services to a company or offshore service provider in a low-labor-cost country. Offshore accounting services can help you delegate complex and entry-level tasks like tax preparation, bookkeeping, inventory management, virtual assistance, etc.
Why has offshoring become so important today?
Firms that offshore their operations often offer their services at lower prices while continuing to earn profits as labor and infrastructure costs subsequently fall. Also, resources unavailable in the domestic market can be easily accessed in the international market through offshoring.
While the cost-saving incentive usually attracts CPA firms to offshoring, they quickly realize there’s much more to it than that. The real benefits of offshoring are unlocked when a tax return is looking to expand and take on more work. Through offshoring, CPA firms can focus their time and energy on more lucrative work such as financial planning and client advisory. However, it also means that firms don’t have to sacrifice the entry-level work their clients require, such as bookkeeping and payroll.
Moreover, risk management becomes simple to implement during technical crises, natural disasters, or market fluctuations as another organization division will be prepared to respond quickly to any uninvited and unexpected situation. It also provides a broader talent pool that employs new skills, innovative strategies, and global capabilities.
So how does offshoring exactly maximize one’s profits?
1. Increase productivity among your onshore team
An increase in the overall workload is part and parcel of a growing firm. However, this can make your staff overburdened and ultimately inefficient over time. By partnering with offshore accounting service providers, you can simultaneously reduce their burden and grow your business. A relaxed, harmonious and motivating environment is bound to positively impact the quality of output produced by your employees, potentially leading to increased profitability.
Additionally, with the time, energy and mental health of your staff successfully managed by offshoring, they will have the opportunity to upskill themselves, ultimately benefiting your firm.
2. Conveniently scale up or down
Come tax season, you will no longer have to face the pitfalls of having a short-staffed and stressed organization. With different models of offshoring at your disposal, be it part-time or full-time offshoring; or temporary or permanent offshoring, you can easily choose the period in which you wish to cater the services of an offshore team.
Offshoring allows you to pick and choose where and when your money goes. There is no reason to hire an onshore staff that you only really require for three out of four months of a year. This is one of the primary reasons why the popularity of offshore accounting increased tenfold in the past decade. It’s easy, it’s convenient and most importantly, it’s malleable.
Though you can hire offshore staff temporarily, most of our clients keep their staff for the entire year as they realize how beneficial they are even after the busy season.
3. Reduced operational costs and risks
There are several risks and costs associated with having employees. You will be required to spend money on employee salaries, expenses, and the resources needed to get them up and running such as workspaces, PCs, office supplies, accounting software, and other workplace requirements such as ISO are just a few examples.
With offshoring, you will not have to spend additional money on recruiting, training, and maintaining your staff because alongside you, they will be the responsibility of your offshore service provider too. As a result, these threats will be considerably reduced, resulting in money saved and increased profits.
4. Always stay one step ahead
Tax preparation, bookkeeping, and other services are critical for CPA and accounting firms, but they take up a lot of time. By delegating such tasks to experts, these companies can stay ahead of their competitors and gain an advantage. Most CPA and accounting firms are willing to devote more time to customer acquisition and revenue generation activities. However, because compliance tasks take up the majority of their time, they have less scope to expand their portfolios or attract new clients.
Offshoring offers quick turnaround times and means you’re always compliant with the ever-changing laws and regulations. Hiring an offshore team provides accountants with a large talent pool while allowing for cost savings and increased earnings.
Offshoring is a simple and dynamic way to manage your expenses to save money without sacrificing the quality of your output. Outsourcing and offshoring, fortunately, offer businesses the perfect solution. However, you must pick the correct offshore partner.
To know more, check out our blog on how to assess and select the perfect offshoring partner. Numerous companies worldwide are dedicated to offering the best quality services to firms such as yours. However, before making any decisions you should thoroughly analyze your internal processes and policies. Once you are clear on what you want to achieve by offshoring then it’s the right time to take the first step.
Entigrity™ is a trusted offshore staffing partner to 725+ accountants, CPAs, and tax firms across the US, UK, 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 the least to worry about compliance, payroll taxes, overheads or any other benefits. To offshore accounting services, bookkeeping, Tax, and audit services, visit us.