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The Less-Known Advantages of Outsourcing for Bookkeeping Firms

Maanoj Shah
Posted by Maanoj Shah on Jun 4, 2024 3:00:00 PM

Accounting businesses have limited resources, especially small and medium-sized ones. Some of these resources include capital, time, and human resources. It takes time for firm owners to become seasoned and handle the predictable and unpredictable factors of running a business.

Firm owners often have to wear multiple hats—securing clients, making processes compliant with relevant regulations, taking care of internal resources, providing quality output for clients, and so on. Leveraging the resources available becomes imperative to ensure overall success.

Bookkeeping is one of the fundamental services that accounting firms provide. Since small business owners lack the time and bandwidth to perform routine tasks like these, outsourcing can help them leverage the cost, expertise, etc., and help grow their businesses.

Outsourcing is known to reduce costs, give access to a global network of accounting professionals, and help maintain data security—but there is so much more than that.

Let us take a look at the lesser-known advantages of outsourcing for accounting firms.

1. Make your in-house staff happier

One of the key problems that growing accounting firms face is that they face increasing workloads as they onboard more and more clients. As the work increases, these firms cannot often accommodate growth. Your in-house staff ends up working more for the same pay.

Overworking also increases the chances of error in critical tasks. When you outsource your accounting practice, you can free up the in-house team, allowing them to complete the work at a manageable pace, reduce the chances of error, and improve their jobs. It also gives them the work-life balance needed to keep burnout at bay.

When your in-house teams are happy, you can focus better on jobs like customer satisfaction, advisory tasks, and revenue generation while reducing the attrition rate.

2. Get staffing flexibility

Accounting firms provide some services like bookkeeping to their clients year-round. Then there are tasks like tax preparation, where you need a handful of resources only for a few months. Your business’s needs and goals keep changing, and outsourcing makes room to groom those needs just the way they should.

Even in the case of bookkeeping, maybe your in-house team doesn’t need the allocated hours to complete it. But you will have to pay what is worth no matter what.

Outsourced teams allow you to scale up and down at your convenience. Even if you see a sudden boom in the projects, you can tackle it by simply adding a few resources. Outsourcing also allows you to meet critical deadlines and ensure the job is done well.

3. Eliminate a single point of error

Accounting and bookkeeping are critical tasks. It can make or break your client’s current financial status and reputation. When you outsource, you get access to a team of seasoned professionals who are bookkeeping aces. They know what they are doing and understand that their relationship with the accounting firms is heavily dependent on the accuracy of the job.

Additionally, most often, there is a multi-point review process that allows the team to correct their mistake, if any. Unlike your internal teams, in outsourcing, one resource is not responsible for handling multiple things. This allows them to spend their time, energy, and focus on ensuring perfection in your firm’s tasks.

4. Get an impeccable clean-up of the financials to prevent penalties

As an accounting firm owner, you may or may not be an expert in resolving financial issues. Even if you are one, how often do you have time to go through piles of data to check for errors and inconsistencies? Rarely.

Outsourced bookkeeping experts are responsible for analyzing your finances thoroughly and cleaning up any past, present, or future issues. They explain the issues to the accounting firm in detail to take you through them and find solutions to the problems. For example, say there are accounts receivables that need to be written off. Or maybe you are paying too much tax for assets that should be disposed of. An outsourcing partner not only helps you spot these issues but helps you find solutions that actually work.

5. Find more time to focus on business instead of routine accounting tasks

As an accounting firm owner, your focus must be building your business, not bookkeeping data inconsistencies. Accounting firm leaders know how their industry and business run well. It is important to focus on their key strengths—boosting sales, improving marketing strategies, or training and guiding the teams.

Outsourcing benefits such firms by helping them reduce about three-fourths of their time on accounting tasks. It is only normal for accounting firm owners to worry about the seamlessness of the daily tasks, but by outsourcing it to accounting firms, you can be assured that all of these routine tasks are being taken care of.

6. Deal with auditors like a pro

At some point, accounting firms run the risk of receiving a notice from auditing bodies like the IRS. For business leaders, it is not just a matter of dealing with these issues; they also fear reputational damage if things go wrong.

When you partner with outsourcing firms, you get a team with compliance experience and knowledge adeptly dealing with the IRS, state regulators, or other auditing bodies. If the situation demands, they can also be the point of contact for solving these issues.

Solve multiple bookkeeping firm issues with outsourcing.

Outsourcing can be worrisome, but only when you do not know the right steps to follow in your journey. Bookkeeping is a vast and time-consuming process; however, it is a much-needed one.

Small accounting firm owners must set themselves up for success by accessing an expert team of professionals who know exactly what they are looking for and make all resources available.

Besides the known benefits of the business model, you should consider the above-mentioned aspects when considering outsourcing. Conduct your research and find a partner that suits your needs.

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Topics: Practice Growth


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