The dynamic world has a tremendous impact on every sector, and accounting is no exception. The implementation of technology-based systems has drastically driven the corporate industry to change. CPA firms are the most affected by the rapid evolution of the current accounting environment. Most Australian accounting professionals struggle to stay on top of the changing tax laws, and managing the team during tax season is a real challenge. This calls for reliable accounting skills and the ability to stay updated with the latest standards and regulations of the Australian Accounting Standards Board (AASB) sets. However, accounts outsourcing is a sensible solution to get around the CPA firms’ challenges and improve operational effectiveness.
This post checks deeper into the biggest challenges of accounting and how outsourcing addresses them.
Accounting Firms – Challenges and Solutions
The developing technology and rising client demands have presented CPAs with various challenges. The biggest obstacles an accounting firm can overcome with the proper support are listed below –
Competing in an Intense Environment
Adding new players in the market results in new rules and regulations, which is good for development and temporal adaptation. However, with the unregulated and unchecked entry of new rivals, it has become harder for both new and veteran CPA firms to survive in a fierce market. They find it difficult to adapt to evolving laws and regulations quickly.
The key to surviving the competition is to keep moving forward. With an outsourcing partner, you can swiftly respond to the shifting circumstances and major CPA firms’ challenges. With the rest of your process being outsourced to a dependable partner, you can concentrate on strengthening your core competencies.
Privacy and Cybersecurity
For professional accounting firms, cybersecurity is a hot-button topic. Since accounting businesses are continuously on the screen of cyber criminals, it is becoming more challenging for them to secure their data from hackers. Security has emerged as a key issue for CPA firms with the increased use of cloud devices to keep their private data.
Accounting outsourcing companies take care of all the CPA firms’ challenges around cybersecurity. An outsourcing partner protects your client’s data with innovative, extensive, and well-protected tools.
Keeping Up a Regular Workflow
Numerous procedures, including team management, measurement, and monitoring, are part of the route to efficiency. To improve productivity, accounting firms are streamlining their operations with cutting-edge software. However, keeping a check on every point and deploying tools is a costly affair for CPA companies. As a result, accounting firms struggle greatly to maintain an efficient workflow within the company.
Outsourcing allows you to concentrate on business strategy while saving time, money, and resources that would otherwise be used on repetitive operations. When certain business processes are outsourced, the backend and frontend operations can be connected smoothly, saving time and reducing communication gaps. This overcomes the great CPA firms’ challenges and helps them keep up with the workflow efficiently. Outsourcing makes it easier to keep track of accounting and prepare paperwork regularly, reducing year-end stress. This makes your books tax-ready and spares more time during the busy season.
Expenses and Overheads
Price reduction is one of the main CPA firms’ challenges on board. It is costly to stay current with technology and to maintain cost effectiveness while implementing new hardware and software. Additionally, the fierce market compels businesses to adopt novel revenue-generating strategies, such as investing in digital marketing or expanding their in-house staff to bring in more expertise. High operating costs are a big concern for CPA companies, posing several difficulties in remaining cost-effective.
By minimizing repetitive accounting procedures, outsourcing enables the firm to concentrate on business expansion initiatives. Additionally, outsourcing provides top-notch services for minimal overhead. You will only have to pay for the portion of the work that is outsourced. This also avoids the requirement for adding more employees to handle the workload during tax season and keep expenses in check.
High Client Expectations
Earlier accounting firms were viewed solely as service providers, but clients now demand value-added solutions. Modern clients expect their CPAs to handle a variety of tasks for them, including payroll processing, tax prep, stock management, valuable financial advice, and tech support. They want their financial firms to deliver an all-inclusive package so they won’t need to hunt for other service providers. The real-time CPA firms’ challenge is providing all the services to the client’s satisfaction.
Outsourcing aids in meeting deadlines, as your outsourcer will have the resources needed to perform the job. This increases turnaround time for income statements and tax returns while maintaining high-quality service and enabling your in-house staff to concentrate on more important things. Additionally, an outsourcing partner provides services like bookkeeping, consulting, and more to increase client satisfaction and keep them around for a long time.
Considering all the CPA firms’ challenges, it is clear that outsourcing accounting services is the best way to address every concern. CPA and accounting companies can minimize their strain and stress during tax season, quickly establish their brand, meet customer expectations, utilize cutting-edge technology, and, most crucially, lower their overall business costs by outsourcing services!
Looking for support in Australia to revitalize your accounting firm? Fourfold Global provides one-stop accounting and finance solutions. We collaborate with CPA and accounting firms to help them increase productivity, effectiveness, and profitability. With cutting-edge technology, world-class procedures, and a team of highly skilled professionals, we help you scale your firm to success!
Contact us today and get started for better!