When a busy CPA firm chooses to outsource some of their accounting and bookkeeping to an agency, it can help them dramatically improve upon their overall efficiency levels, accuracy, and financial organization. However, failure to hire the right kind of outsourcing agency, can result in the CPA firms’ frustration and dissatisfaction.
In short, outsourcing for CPA firms can be an incredibly beneficial experience, but only if certain steps, such as those listed below, are followed as closely as possible at all times during the relationship:
- Maintain clear and consistent communication
Nothing is more important between an outsourcing partner and their CPA client, than effective communication, and here are a few ways to maintain it:
- Appoint one person as a primary contact
Nominate one person from the company to act as a primary contact.
- Encourage communication between both parties
Try to foster the type of environment in which your employees are comfortable sharing ideas and concerns with the outsourcing agency, and vice versa.
- Make use of technology
By using advanced software for accounting and collaborative tools, you can easily share data in real-time.
- Set times for regular meetings
Schedule periodic meetings in which progress, challenges, and predictions for the future of upcoming projects can be reviewed.
- Provide relevant context and background details
When giving the outsourced team tasks to fulfil, be sure to give them all the information they need.
- Foster trust and transparency
A successful business relationship is built upon trust, and you must try to be as transparent and honest with your outsourced partner as you can, in the following ways:
- Establishing performance metrics
Key performance indicators (KPIs) must be defined collaboratively in order to accurately measure the outsourcing team’s success.
- Addressing challenges appropriately
When faced with a challenge, approach it in a constructive manner that emphasises solution-finding, rather than blaming.
- Offering regular feedback
This should be given frequently, and involve the quality of their work and communication.
- Emphasizing a long-term relationship
It’s important to express that you’re committed to working together on a long-term basis.
- Establish clear expectations
A simple misunderstanding or miscommunication can have negative consequences, and lead to unnecessary delays or costly errors. When setting out your expectations, consider the following:
- Defining the scope of work and objectives
The scope of work you expect the outsourcing partner to fulfil, along with any particular objectives, must be clearly defined from the outset.
- Establishing timelines and deadlines
In accounting, timing is essential, so you must set achievable timelines and deadlines for all tasks, for the best results.
- Discussing structures for reporting
Agree upon how often financial reports must be produced, and what format they will be in. Having regular updates can give you valuable insights into the financial well-being of your CPA firm.
- Addressing security and confidentiality
Your chosen outsourcing partner must adhere to stringent protocols surrounding security and confidentiality.
- Leverage resources and expertise
Outsourcing can give you invaluable access to specialist expertise, and to make the most of this, you should try to:
- Understand the strengths of your partner
Tailor tasks and projects to make the most of the areas of expertise and strengths, that your outsourced partner possesses.
- Work together on long-term planning
Start discussions between your accounting team and your outsourced partner, based upon strategic decision-making and long-term financial planning.
- Keep learning
Keep yourself up-to-date with the latest accounting regulations and practices.
- Ensure compliance and accuracy
Accounting relies heavily on regulatory compliance and the accuracy of financial data, and to achieve this at all times, you can follow the guidelines below:
- Stay up-to-date with changes to regulations
Compliance is crucial, so stay on top of any changes made to regulations and accounting standards that could impact your business.
- Carry out regular audits
Verifying your financial records and making sure they’re accurate and adhere to established procedures, can be achieved with periodic audits.
- Put internal controls in place
Set up robust internal controls to protect against errors and fraud.
When you know how to use outsourced bookkeeping services to your advantage, you can quickly and easily get several steps ahead of the competition, and encourage your CPA firm to grow as it ages.
