Four Scenarios When You Should Use Offshore Accounting Services for Tax Work
Originally published by Laurence Whittam on The Daily CPA
Many accounting firms start looking for help during the tax season because of staff crunches and increased workload. While some move towards hiring additional accountants, others get help from offshore accounting services.
Accounting outsourcing for accounting firms is ideal for those who don’t fear losing control over sensitive client data or compliance and want to get quality work delivered on time. If you are hesitant about outsourcing, here are four scenarios when offshore accounting services come in handy:
Your practice staff is overworked
If your staff is going to spend a significant amount of time preparing tax returns, consider outsourcing. Let the tax experts handle it. Some even turn around tax returns in 24-48 hours. Take advantage of such providers of offshore accounting services.
Accounting outsourcing for accounting firms creates efficiencies so that these firms can look after high-margin functions like budgeting and forecasting.
When your CPA firm is slightly tech-challenged
As accounting software evolves, keeping up with continuous updates can become costly, especially for firms scaling rapidly. If this sounds familiar, outsourced accountants may be the solution.
Outsourcing partners typically use the latest software and have the technical expertise to handle complex tasks like tax return filings, ensuring your firm stays current without the added cost of frequent upgrades.
When you want to add more services to your offerings
Your accounting firm’s growth will stagnate if it does not branch out or expand its offerings. Add high-margin functions like auditing and corporate advisory to your portfolio of offered services which will provide more to your existing clients and attract new ones.
Your outsourcing partner can manage basic functions like tax outsourcing while you focus on identifying lucrative and beneficial services to your clients.
When you are unable to find talent easily
Many accountants leave CPA firms to work for larger corporations or to start their own practice which leaves a major talent gap in the market. In such a scenario, outsourcing is a smart business decision as the outsourced accountants already understand the work, are trained on multiple software systems and can turn around work quickly.
When your workload fluctuates
Many accounting firms experience seasonal fluctuations in workload. If your firm finds itself overstaffed during quiet periods and understaffed during busy times, outsourced accounting services can help balance the workload. This flexibility allows you to scale your operations up or down based on current demands without the financial burden of hiring or laying off staff.
When you need specialised skills
Sometimes, your firm may require specialised accounting skills for specific projects, such as international tax law or forensic accounting. Finding talent with these niche skills can be challenging. Outsourced accountants can provide access to a pool of experts with the necessary qualifications, ensuring your clients receive the attention they need.
When you need specialised skills
Sometimes, your firm may require specialised accounting skills for specific projects, such as international tax law or forensic accounting. Finding talent with these niche skills can be challenging. Outsourced accountants can provide access to a pool of experts with the necessary qualifications, ensuring your clients receive the attention they need.
It isn’t wrong to do your tax and accounting in-house. However, if it is harming your firm’s core competency you should get outside help by outsourcing.