Does Outsourcing Make Sense For Your Accounting Firm?
Tax planning, investment management, audit services, bookkeeping, payroll management. Have you ever walked away from a meeting with a potential client and felt like you were expected to provide it all?
You’re not alone.
Accounting Today states that more and more clients are seeking tax and financial services from a single source. Setting up your firm as a one-stop-shop might make your clients happy, but it can be difficult to ensure you can offer such a wide variety of services while maintaining the quality of service your clients expect.
Limited time and resources are just two of the obstacles that may lead you to drop less profitable services such as bookkeeping, in favour of other more profitable client services. If your clients are looking for a one-stop-shop, however, this decision could prove costly as unhappy clients take their business to firms that can provide all the services they need.
So what’s the solution? Is there a way to make your clients happy and still keep your firm efficient and profitable? Outsourcing might be the solution you’re looking for.
The Benefits of Outsourcing
While outsourcing, the practice of obtaining services from an outside source instead of an in-house team, is certainly not a new concept, it’s easy to see it as merely a cost-saving strategy and overlook the many other benefits outsourcing can provide your business.
1. Save your time for the tasks that matter
When you outsource time-consuming less profitable tasks such as bookkeeping, you can make sure your staff has the time to provide your clients with higher value advisory services that are more profitable for your business and provide greater job satisfaction to your staff.
2. Focus on innovation
When your time isn’t taken up with mundane tasks, you’ll also have more time to invest in your own business growth. Forbes states that businesses should consider whether they currently have the time to develop innovative services and products when thinking about outsourcing. With less time devoted to routine tasks, you have the ability to invest in your own business strategy, helping you stay competitive and meet your client’s changing needs.
3. Take advantage of others’ expertise
Outsourcing means you don’t have to study up on areas outside of your expertise or learn how to use specialized software. When it comes to services like payroll management, there are dozens of software programs to choose from and no telling which ones your clients will prefer to use. If you outsource these services to firms that specialize in them, you can ensure that your clients are getting the level of service they want, without having to invest your own firm’s time and resources.
4. Scale easily as your business grows
Of course, you may be considering simply hiring in-house staff that specialize in specific areas instead of outsourcing. After all, why outsource to a firm that specializes in bookkeeping if you can keep a bookkeeper on staff, right?
While this may be a good solution for your company now, as your firm grows, you may have difficulty meeting demand for your services. Forbes identifies scalability as a key factor in determining whether to outsource. Outsourcing services such as bookkeeping allows you to keep your own costs low and meet rising demand without investing resources or scrambling to expand your team.
While clients continue to expect accounting firms to function as one-stop shops, the future of accounting is increasingly focused on using new technologies such as data analytics to transform the role of accountants into that of trusted business advisors.
Outsourcing less profitable but necessary services such as bookkeeping can ensure you and your staff have the time to spend on these high-level advisory services and build trusted relationships with your clients.
Sayali Dighe is a Technical Communicator and writer with CaseWare International.