As the business landscape has developed over time, so have the businesses. It requires a lot of effort and strategic management for a CPA firm to run successfully in today’s competitive time. Firms are looking for effective solutions that can help them boost efficiency and cut down on costs without impacting their work quality. It is then no surprise that Outsourced Accounting has emerged as one of the popular strategies for CPA firms.

But despite benefiting innumerable firms, there still remains questions around it. There is some misinformation about outsourced and offshore accounting that makes firms hesitate in using this approach. But how much of it is true and how much of it false? Below we have separated fact from fiction for CPA firms about outsourced accounting by debunking some of the popular myths about it.

Fiction #1: Outsourcing is for large firms only

Fact: This is perhaps the most common misconception regarding outsourced accounting; firms believe that it is only suitable for large sized CPA firms with substantial amounts of work and extensive resources. While it may have started out with big companies leveraging outsourcing, over the years outsourcing practice has also evolved. It can now be customised to meet the needs of any firm, whether small, mid-sized or large. Outsourcing vendors can customize their services to benefit SMBs by providing them access to skilled talent within their budget. In fact, it allows small firms to avoid having to perform all tasks themselves and instead focus on growth and client satisfaction.

Fiction #2: Outsourcing can put your data at risk

Fact: When you deal with sensitive and private financial data of clients on a daily basis, data security becomes a primary concern. And rightfully so. CPA firms fear that by outsourcing they are putting the data at risk of being breached. But avoiding outsourcing is not the solution to this problem. Instead the firms should partner with a reliable outsourcing vendor who prioritizes the safety of your data. Firms can ensure that when they outsource any function, their outsourcing partner adheres to relevant safety laws and employs robust security measures to avoid compromising the private data. By taking the right steps it is easy to mitigate this risk.

Fiction #3: Outsourcing leads to loss of control over work

Fact: Outsourcing does not mean handing over the process or function and not looking back. When a firm outsources any task, they are the one in charge. Whether it’s one professional or a team that you outsource to, they work as per your rules and guidance. In other words, they are an extended part of your firm. The firm retains control over the tasks, the outsourcing partner ensures that all the protocols and deadlines are followed. Communication is important when outsourcing any process. By maintaining open communication with the outsourcing partner you can ensure that you retain control over the work being outsourced.

Fiction #4: Outsourcing can lower the quality of work

Fact: Any reputable outsourcing vendor who works with CPA firms understands the importance of delivering high-quality and accurate results. In fact, when a small or mid-sized firm with limited human resources insists on performing all accounting tasks themselves, they risk compromising the quality of work they deliver to their clients. Outsourcing allows such firms to access skilled professionals with expertise in the industry. Whether a bookkeeper or an accountant, tax preparation or audit support, they are familiar with the quality standards and regulatory compliance required of their work. The outsourcing partner ensures these standards are maintained, thereby providing high-quality services to their clients.

Fiction #5: Outsourcing negatively impacts domestic jobs

Fact: Another reason firms hesitate to outsource is that they believe that they would be sending jobs overseas. While offshore outsourcing does displace domestic jobs directly, it’s not as simple as that. In many ways, offshore outsourcing creates new jobs and indirectly helps advance the country’s economy. When a firm outsources, eventually they are able to cut down on costs and increase their productivity, helping them successfully grow and expand their firm. It allows the local employees to develop their skills for the new white-collar jobs that are created as a result of business growth and development. While a set of jobs move overseas, another set of jobs are created, ultimately compensating for any impact it would have had on domestic jobs.

Along with all the advantages it offers, outsourcing in today’s time is also one of the most effective solutions to the talent shortage challenge being faced by CPA firms. Don’t let the uncertainties and misinformation about outsourced accounting stop you from benefiting from this practice. You can put to rest many of these misconceptions and get the best out of outsourcing with the right outsourcing partner by your side. At Atika BPM, we are dedicated to providing customised solutions that align with your firm’s needs and help grow your business.