Are you a new CPA business with high ambitions and hopes? Do you want to establish your account business in a highly competitive market? Are you trying to serve your clients with perfection?
Then, you should use outsourcing accounting services. By using it, you will be able to hire talented employees at a lower rate that can reduce your overhead cost. It will eventually improve your productivity as well as help you expand the client base of your small accounting business.
But, if you are not aware of outsourcing accounting services and you are wandering in the world of outsourcing accounting myths, then you need to know the reality of outsourcing accounting.
The myths of Outsourced Accounting Service – Hindrance in your way to success
It is economically tough for small firms to hire full time experienced professionals in different areas like taxation, management, and bookkeeping. Also, they cannot afford to update accounting technology every other month. That’s why outsourcing for accounting firms is a great solution that can empower small CPA businesses.
However, there are few myths regarding the outsourced accounting industry that has been disturbing small CPA businesses to invest in the outsourcing services. So in this blog, we are going to discuss some commonly heard outsourcing accounting myths that you need to wipe out today from your brain.
Myth 1 – Outsourcing services only enhance the productivity of large businesses.
Reality: It is a myth going in the mind of many professionals of small firms that outsourcing accounting service is beneficial for only large accounting businesses. Well, it is not reality, yes big companies can increase their productivity by using this service, but that does not mean that small or moderate-sized companies cannot get benefits from it.
Small accounting firms can provide various services to their clients at an affordable rate with the help of outsourced services. For example, if any client of yours wants you to do taxation and bookkeeping services, but your firm has the only bookkeepers. Then you can outsource professional tax services and use yours in house staff for bookkeeping services.
Myth 2 – You need to compromise with your company’s safety and privacy:
Reality: It is a complete myth that stopping tons of companies in outsourcing accounting services. They believe that providing confidential information with strangers and inviting outsourcers in the business will affect the company’s safety and privacy.
It might be true in some cases, but if you hire trusted and reputed outsourced accounting firms with fairly good client reviews, then you will not lose anything.
Also, all the trusted and reputed accounting outsourcing firms foremost sign agreement with their clients to legalize all terms and conditions in the written to prevent future conflicts.
Myth 3 – Offshoring and outsourcing are the same:
Reality: There are so many accounting business holders that often get confused between the offshoring and outsourcing accounting services. Both of these terms are opposite to each other. Outsourcing accounting service means there is an agreement between you and a third party firm that will offer particular services to you. But, offshoring is hiring a complete accounting team from a different country. In offshoring, professionals will be available at a cheap rate, but the employees will remain part of the company.
Myth 4 – You cannot establish a long term relationship with outsourced accounting companies:
Reality: Many accounting firms think that outsourcing accounting service is a short term activity. But, it is a myth because CPA businesses can establish long term relationships with outsourcing service providers.
You can completely outsource particular accounting services from the outsourced company. For example, if your firm is not a tax expert then you can still provide tax services to your clients by outsourcing the accounting service. So, tax services are often required during a specific period so you can quickly establish a long-term relationship with outsourced accounting firms.
Myth 5 – You will require a high level of IT infrastructure for outsourcing accounting services:
Reality: Many accounting companies hesitate to use outsourcing services because they feel that they are insufficient to deal with the big IT database. However, it was an old issue because now, communication tools and tons of IT applications are available at very affordable rates.
Small and medium-sized accounting firms can easily acquire the tools and application to establish a connection with their outsourcing service providers.
People create myths because they have faced bad experiences at the initial stage. You cannot judge the book from its cover. Just like that, if you want to know the outsourced accounting services advantages, then you have to try it by yourself. There is no need to believe in baseless myths. So, if you ever heard or thought above discussed five outsourcing accounting myths, then wipe it out immediately. Feel free to contact us at FinAcc Global for best quality outsourcing accounting services.