In the aftermath of the pandemic, the norm for the workforce has evolved into a hybrid structure where employees split their time between working from home and a physical office. There are numerous versions of this hybrid workforce arrangement, ranging from working one day in the office and the rest from home, to working two days in the office and the rest from home, to working remotely from a client’s location or having work done entirely offshore.

The impact of this new norm has been experienced differently by professionals based on their gender, age, family status, and level of technical proficiency. This makes the topic of leading and managing remote teams critical for managers, team leaders, and even top management. Let’s get started then!

How to manage remote and hybrid teams

The transition to a hybrid work culture has posed unique challenges for CPA and Accounting firms, requiring a set of skills beyond the domain expertise of finance and accounting. As firms navigate this new hybrid workplace norm, deciding on which employees to retain on their payroll, and which ones to convert to consultants has become a delicate and complex process. The success of these firms now rests on the ability of their employees to adapt and thrive in this new hybrid work environment.

According to the AICPA’s 2022 PCPS CPA Firm Top Issues, one of the key concerns for CPA and accounting firms in the next five years is effectively managing a hybrid workforce consisting of both remote and in-person employees. The issue is particularly pronounced in larger firms with more than 50 employees.

At Finsmart Accounting, managing a hybrid workforce is one of the unique propositions we have developed over the last 15 years. While the pandemic had its own set of challenges, it was far easier for us to adapt since we had prior experience in this and were able to continue our service to our clients.

Accounting Seat from Finsmart has done wonders for hundreds of accounting firms in the USA. Check out what this accounting firm from South Florida has to say about us:

Based on our experience, we highly recommend utilizing the following guide, which outlines the key considerations that CPA and Accounting firms must carefully consider when formalizing their hybrid work program. By doing so, firms can effectively mitigate the challenges associated with managing a hybrid workforce or a completely remote team!

Assessment & Evaluation

Moving from an in-person office for all employees to a hybrid workforce can be a significant change for both the company and its employees.Here are some steps that can be taken to determine which employees to retain or keep on consulting to make the hybrid workforce transformation:

A) Assess the company’s needs: Evaluate the company’s business needs, goals, and objectives in the context of the hybrid work environment. Determine which roles and skills are critical to achieving these goals, and which ones can be scaled back or eliminated.

Skills and qualities that may be prioritized to keep as full-time employees:

1. 1. Strong technical skills in accounting and tax laws and regulations.
   2. Experience working with complex clients and engagements.
   3. Proven track record of high-quality work and attention to detail.
   4. Strong communication skills, both written and verbal, are necessary for effective collaboration with clients and team members.
   5. Leadership skills, are necessary for managing teams and providing guidance to junior staff.
   6. Proven ability to work independently and manage workload effectively.
   7. Strong problem-solving and critical-thinking skills.
   8. Adaptability to new technology and work processes

Skills and qualities that may be prioritized to transition to consultant roles:

1. 1. Experience in a specific industry or specialty area.
   2. Strong network and relationships with clients and referral sources.
   3. Proven track record of successful consulting or project-based work.
   4. Flexibility to take on project-based work with varying timelines and schedules.
   5. Strong time management and organization skills necessary for managing multiple clients and engagements simultaneously.
   6. Strong marketing and business development skills to help grow the firm’s client base.

B) Evaluate employee performance: Evaluate each employee’s performance based on their job responsibilities, performance metrics, and other relevant factors. Consider factors such as productivity, quality of work, communication skills, technical skills, and client satisfaction to make up your mind about in-office or remote positions.

C) Analyze remote work suitability: Evaluate each employee’s suitability for remote work based on their job responsibilities, work habits, and ability to work independently. Consider factors such as self-motivation, time management, and communication skills.

D) Communicate with employees: Communicate with employees about the company’s plans for the hybrid workforce and how it will affect their job responsibilities. Explain the criteria being used to make retention or consulting decisions, and provide feedback on their performance.

E) Create a transition plan: Create a transition plan for employees who will be laid off or transitioned to consulting roles. This plan should include details such as a timeline for the transition, the scope of the consulting role, and the terms of the consulting agreement.

Establish clear communication protocols

Develop clear communication protocols for both remote and in-person employees, and establish guidelines for client communication. This is important to lead a remote team because everyone won’t be working at the same place or time. Steps that can help establish clear communication protocols are as follows:

A) Determine the best communication channels: Identify the most effective communication channels for your hybrid workforce, such as email, phone, video conferencing, and project management tools. Consider which channels are best suited for different types of communication, such as urgent messages on team messaging platforms or phone calls, or if you need longer discussions than Zoom or Google Meet calls, and for formal communication use emails.

B) Establish guidelines for response times: Set clear expectations for response times for different types of communication. Zoom or Google may require you to give in advance time vs. key urgent messages that can be called, however, need to keep in mind the working hours of the role.

Create guidelines for different types of follow-up timelines and escalation channels to use them e.g. After a meeting, an email is sent to all attendees, with deadlines mentioned. Now if any attendee has not updated the status on the deadline, then first use email to check, then after 2 hrs  (working hrs), use a phone call (during working hrs) to get the status.

C) Clarify client communication protocols: Establish clear guidelines for client communication, including when and how to use virtual meetings versus in-person meetings. Ensure that all remote or in-office teams or employees are aware of these guidelines and adhere to them.

D) Encourage two-way communication: Encourage two-way communication between remote and in-person employees to facilitate collaboration and problem-solving. Ensure that all employees feel comfortable speaking up and sharing their ideas and feedback. 

Establishing such communication protocols will help you successfully lead a remote team. Let’s move on to the next critical hybrid workplace parameter!

Prioritize security

Given the sensitive nature of client information, security should be a top priority. Some steps that can help prioritize security:

A) Use secure communication tools: Use secure communication tools to protect client information, such as encryption software, secure email systems, and virtual private networks (VPNs). Ensure that all employees understand how to use these tools properly. Provide training if necessary to acquaint the remote teams or employees with new tools.

B) Implement two-factor authentication: Implement two-factor authentication to ensure that only authorized personnel can access client information. This adds an extra layer of security by requiring a secondary authentication method, such as a text message or fingerprint, in addition to a password.

C) Use secure file transfer methods: Use secure file transfer methods to protect sensitive client data when sharing files between remote and in-person employees. Consider using cloud-based storage platforms that offer end-to-end encryption and other security measures.

D) Establish password protocols: Establish password protocols to ensure that all employees use strong passwords that are difficult to guess. Consider implementing a password manager to facilitate password management and prevent employees from using the same password across multiple accounts.

E) Limit access to sensitive data: Limit access to sensitive client data to only those employees who require it to perform their job functions. Consider implementing role-based access controls to ensure that only authorized personnel can access certain data. This is super important for organizations that plan to manage bigger remote employees in 2023.

Define policies and expectations

Clearly defining policies and expectations for both remote and in-person employees is essential for CPA & Accounting firms to ensure that all employees understand their roles and responsibilities. Some steps that can help define policies and expectations:

A) Define clear communication policies: In the Hybrid workforce, the tendency to either be too formal or too informal or write coded or brief messages can create issues and difficult to interpret the key meaning. Hence it is of utmost importance for CPA & Accounting firms to define communication policy on when to use informal vs. formal communication protocols, usage of emojis, acronyms, and short-hand messages between team members and with clients.

B) Define key policies: Define key policies that apply to remote and in-person employees, such as time tracking, communication, and security policies. Ensure that all policies are consistent with the organization’s values and goals and comply with relevant laws and regulations.

C) Establish expectations for work hours and availability: Establish clear expectations for work hours and availability for remote and in-person employees. Define core working hours when employees must be available for meetings and collaboration, and clarify how to handle situations where employees need to be away from work unexpectedly. This is something a lot of organizations have struggled with while leading hybrid teams. So, don’t forget this one!

D) Establish expectations for work quality and productivity: Establish clear expectations for work quality and productivity for remote and in-person employees. Define performance metrics and goals and provide regular feedback to employees to ensure that they are meeting expectations.

Foster team culture

To foster a sense of community and strengthen team dynamics, CPA & Accounting firms should ensure that all employees feel connected and engaged, whether working remotely or in person. Here are some steps that can help foster team culture amongst employees that are working remotely:

A) Establish regular check-ins: Establish regular check-ins between remote and in-person employees to promote communication and collaboration. Consider using video conferencing tools to facilitate virtual face-to-face interactions and ensure that all employees have access to the necessary technology.

B) Encourage informal communication: Encourage informal communication between remote and in-person employees to build relationships and promote team culture. Consider setting up virtual water cooler chats or other informal communication channels. This is how to manage remote workers correctly!

C) Facilitate team-building activities: Facilitate team-building activities that incorporate both remote and in-person employees, such as virtual scavenger hunts or online team games. Ensure that all activities are inclusive and accessible to all employees.

D) Promote recognition and appreciation: Promote recognition and appreciation for remote and in-person employees to celebrate successes and acknowledge hard work. Consider using virtual recognition tools or sending personalized messages to employees.

E) Encourage professional development: This is something remote employees often feel missing out on. Encourage professional development opportunities for all employees, whether remote or in-person. Provide access to online training resources or mentorship programs to support employees’ growth and development. 

F) Define team goals and objectives: Define team goals and objectives that align with the organization’s mission and values. Ensure that all employees are aware of these goals and are working together to achieve them.

G) Foster a positive work culture: Foster a positive work culture that promotes inclusivity, respect, and collaboration. Set clear expectations for behavior and communication and ensure that all employees – remote or otherwise – are aware of the organization’s values and policies.

We are done with the team culture aspect of ‘how to manage remote teams’. Now, let’s look at the tech side of it!

Invest in technology 

This is essential for CPA & Accounting firms to ensure that all employees have access to the necessary tools and resources to work effectively and efficiently, whether remote or in-person. Invest in technology that facilitates collaboration and communication among remote and in-person employees, such as video conferencing software, project management tools, and communication platforms.

Read our Guide in Adapting Emerging Technologies that can help you embrace and grow with technology.

Emphasize compliance

Emphasizing compliance for managing a hybrid (remote and in-person) workforce is important for CPA & Accounting firms to ensure that all employees are following regulatory requirements and organizational policies, whether working remotely or in person.

Read best practices that CPA firms can use to manage the accounting regulatory compliance in the hybrid environment.

Provide training and support

This is the most important and crucial consideration when you are planning or following the hybrid workforce. Other than providing training and support on domain areas of finance and accounting and soft skills for work management, below are vital training for hybrid workforce:

A) Technology training: Provide training and support to employees on how to use communication tools effectively, including video conferencing software and project management tools. Ensure that all employees have access to the necessary technology and training to use it effectively. Consider offering online training resources or scheduling training sessions with IT staff.

B) Security training: Provide regular security training to employees to educate them on how to identify and prevent security threats. Cover topics such as phishing scams, malware, and social engineering tactics, and ensure that all employees are aware of the consequences of a security breach.

C) Compliance training: Provide compliance training to all employees, including remote and in-person workers. Ensure that the training is comprehensive and includes topics such as data privacy, information security, and ethical conduct. Ensure that all employees understand the policies and are aware of the consequences of non-compliance.

Without the right training modules and sessions, your transformation into a truly hybrid team won’t be complete. So, make sure you get this right!

Manage workload

Managing the workload for a hybrid (remote and in-person) workforce can be a challenge for CPA & Accounting firms, as it requires balancing the needs of employees who are working remotely with those who are working in the office. Some of the steps that can help manage workload in a hybrid work environment:

A) Prioritize tasks: Prioritize tasks based on their urgency and importance, and ensure that all employees understand which tasks are the highest priority. This can help ensure that the most important tasks are completed on time, even if there are competing demands on employees’ time.

B) Consider flexible scheduling: Consider implementing flexible scheduling options, such as allowing employees to work non-traditional hours or work from home on certain days. This can help employees manage their workload more effectively and reduce stress. It’s important to be flexible and adaptable in managing workload in a hybrid work environment. This can mean adjusting priorities or deadlines as needed, being responsive to employee feedback, and being open to new approaches to managing workload.

A project management system will come in handy for this. Read on to come across the last piece of the puzzle named ‘how to manage remote employees’.

Monitor performance 

Regularly monitor the performance of both remote and in-person employees to ensure that everyone is meeting objectives and contributing to the team. In our experience monitoring performance has to differ in a hybrid work environment. There are some specific considerations to keep in mind when monitoring performance in a hybrid work environment:

A) Use technology to track performance: In a hybrid work environment, technology can play an important role in tracking performance. This can include project management tools, time-tracking software, and employee monitoring software that allows managers to track employee activity and productivity.

B) Emphasize trust and accountability: In a hybrid work environment, it’s important to emphasize trust and accountability. This can include setting clear performance expectations, providing regular feedback, and emphasizing the importance of communication and collaboration.

C) Conduct regular security audits: Conduct regular security audits to identify vulnerabilities and gaps in security protocols. Address any issues that are identified and update security protocols as needed. Indeed a crucial step while leading a remote or hybrid team!

D) Monitor and adjust: Monitor the success of the hybrid workforce and make adjustments as necessary. Evaluate the performance of retained employees, the success of consulting roles, and the impact of layoffs on the organization.

Connect for Accounting Offshoring Support

Finsmart Accounting with its 15 years of outsourced accounting space uses its own proprietary framework called DPPT – Definition, Process, Precision & TAT that has been the success mantra for supporting the firms in the US to stay ahead of the competition.

By partnering with an experienced offshore accounting services provider like Finsmart Accounting, CPA firms can access a team of professionals who are knowledgeable about the latest technologies, up to date with ever-evolving accounting norms, and also domain experts in US accounting. 

Your thoughts on managing a remote team?

Would you like to know more about managing a hybrid workforce to grow your accounting practice? Did we miss out on anything while answering ‘how to manage remote and hybrid teams’? Start the conversation below or check out our recent blogs on offshore accounting:

Ensuring data confidentiality & security 

Tips to engage the best bookkeeping outsourcing company in India 

2023 strategies to expand accounting business

India entry services to expand and scale in India 

The post Balancing Remote and In-Person Teams: A Guide for Successful Hybrid Workforce Management in CPA and Accounting Firms appeared first on Finsmart Accounting-international.

In today’s fast-paced business environment, accounting firms must stay vigilant and must practise effective risk management to keep pace with evolving threats. From data breaches to regulatory violations, the consequences of a mismanaged risk can be significant, including loss of business, legal liabilities, and reputational damage.

In this article, we’ll explore the various types of risks that CPA and accounting firms face today and provide risk mitigation strategies along with guidance and best practices.

Range of Accounting Risks

CPAs and accounting firms face a range of risks, and – to make it easy to remember – I have coined it as C-CORP:

• Cybersecurity risks
• Compliance risks
• Operational risks

• Reputation risks
• Professional liability risks

If you’ve worked in this field for any length of time, you’ve probably faced most of these risks. If any of them are new to you, please share in the comments and we’ll provide more information.

Regardless of the size of your firm, these risks do not differ except that smaller CPA firms may have fewer resources to manage those risks.

To minimize the potential risks and threats that your business may encounter, it is important to implement a set of risk management strategies and work with proven practices. These practices include conducting regular risk assessments, developing clear plans, procedures, and policies, implementing them, training your staff, communicating with stakeholders, and continuously reviewing and improving them. Time to look at them one by one!

Risk management strategies and practices

Lets me share the details of these practices: 

Assessment:

Identify applicable laws and regulations: The firm should identify all applicable laws and regulations that govern its profession, including federal, state, and local regulations. These regulations may include tax laws, labor laws, financial reporting requirements, and data privacy regulations.

Conduct a risk assessment: A risk assessment should be conducted to identify the firm’s risks and vulnerabilities. This assessment should include an evaluation of the firm’s hardware, software, data, and network infrastructure. The results of the assessment should be used to develop risk mitigation plans.

Conduct compliance assessments: The firm should conduct compliance assessments to evaluate its adherence to applicable laws and regulations. These assessments may include audits of financial records, reviews of tax returns, and assessments of data privacy controls.

Identify operational risks: The firm should identify all potential operational risks that could impact its operations, including risks associated with technology, processes, and human error. This may involve conducting a risk assessment of the firm’s operations. A must-do if your goal is to create an ace risk mitigation plan!

Evaluate the likelihood and impact of each risk: The firm should evaluate the likelihood and potential impact of each risk identified in the risk assessment. This will help the firm prioritize its risk management efforts.

Develop plans:

Develop a risk management plan: A risk management plan outlines the firm’s approach to identifying, assessing, and mitigating risk. The plan should be comprehensive and include specific procedures for each type of risk the firm faces, including professional liability risks.

Develop controls and procedures: The firm should develop controls and procedures to mitigate each operational risk. This may include implementing internal controls, establishing standard operating procedures, and using technology to automate and streamline processes.

Quality control procedures are designed to ensure that the firm’s work meets professional standards and that errors are minimized. Procedures may include engagement letter templates, checklists for common engagements, and documentation requirements.

Develop a comprehensive compliance program: The firm should develop a comprehensive compliance program that outlines the firm’s policies, procedures, and controls for managing compliance risks. The program should include regular compliance training for staff and the designation of a compliance officer responsible for managing the program.

Read on for more risk management strategies or take the time to check my article on managing regulatory compliance 

Develop a cybersecurity plan: A cybersecurity plan should be developed that outlines the firm’s approach to identifying, assessing, and mitigating cybersecurity risks. The plan should be comprehensive and include specific procedures for each type of risk the firm faces, including data breaches, phishing attacks, and malware.

Getting overwhelmed by technology? Read adapting to emerging technologies

Develop a crisis management plan: Even the most prepared firms can experience unexpected crises that can damage their reputation. Developing a crisis management plan that outlines how the firm will respond to various scenarios can help mitigate the impact of these crises. The plan should include procedures for communicating with clients and stakeholders, as well as strategies for rebuilding the firm’s reputation over time. Your risk mitigation plan will be incomplete without this.

Accounting Seat from Finsmart has done wonders for hundreds of accounting firms in the USA. Check out what this accounting firm has to say about us:

Implement & Establish:

Review and obtain appropriate insurance coverage: 

The firm should review its insurance coverage to ensure that it has adequate coverage for any operational risks that cannot be fully mitigated.

Insurance coverage should include:

• Professional liability insurance: Designed to protect the firm against claims arising from errors or omissions in its work. 
• Cybersecurity insurance: Designed to protect the firm against losses resulting from a cyber incident.

Smaller firms should work with an insurance broker to identify appropriate coverage levels and insurance policies to protect against potential liabilities. Remember, risk management without the right insurance is risky.

Implement peer review: Peer review involves having an independent CPA review the firm’s work and provide feedback. Peer review can help identify potential professional liability risks and provide insights on how to improve the firm’s operations.

Implement whistleblower policies: The firm should implement whistleblower policies to encourage employees to report any potential compliance violations. These policies should include procedures for reporting violations anonymously and should protect employees from retaliation.

Establish a business continuity plan: The firm should establish a business continuity plan to ensure that it can continue its operations in the event of a disruption. This plan should include steps to identify and mitigate operational risks, as well as procedures for responding to incidents and restoring normal operations.

Establish a strong ethical culture: A strong ethical culture is the foundation of any successful business, and it can help prevent negative behaviours that can damage a firm’s reputation. Firms should develop and communicate clear ethical standards, and encourage all employees to follow them. The leading accounting firms consider it a crucial strategy for risk management.

Establish a system for monitoring and reporting potential risks: The firm should establish a system for monitoring and reporting potential risks. This system should allow staff to report concerns or potential risks in a timely manner, so they can be addressed before they turn into actual liabilities. 

The firm should also implement a system for monitoring and analyzing cybersecurity threats. This system should allow the firm to detect and respond to potential threats in a timely manner.

Establish security policies, procedures, and controls: Security policies and procedures should be established to govern the firm’s use of hardware, software, and data. This is critical for risk mitigation and management. 

The firm should implement appropriate controls to manage compliance risks. This may include controls for monitoring employee conduct, policies for data retention and disposal, and procedures for verifying the accuracy of financial reports.The firm should also implement a backup and recovery plan to ensure that data can be restored in the event of a breach. 

Security controls may include firewalls, antivirus software, intrusion detection systems, and encryption. Security policies should address issues such as password management, access control, and incident response. 

Communicate & Train:

Invest in employee training: Providing employees with regular training and professional development can help prevent reputation risks by ensuring that all employees are up-to-date on industry standards, best practices, regulatory changes, and new accounting standards.

All staff should be trained on cybersecurity best practices, including how to recognize and respond to phishing emails, how to create strong passwords, and how to secure their devices. In today’s tech-driven world of accounting, this is crucial for creating a comprehensive risk management strategy.

Training can also help employees recognize and avoid behaviours that could damage the firm’s reputation. Training can ensure that staff members understand their roles and responsibilities in managing operational risks. This may involve providing training on new procedures or technology, as well as conducting regular meetings to discuss operational risk management.

Training should be ongoing and updated regularly.

Communicate effectively with clients: Effective communication with clients is critical to building and maintaining a positive reputation. Firms should ensure that clients are regularly updated on their projects and that their expectations are properly managed. When issues arise, firms should address them quickly and transparently.

Review:

Stay up to date on regulatory changes: The firm should stay up to date on any changes to laws and regulations that affect their profession. This may include attending relevant seminars or conferences, subscribing to industry publications, or working with legal counsel.

Continuously monitor and review: The firm should continuously monitor and review its operational risk management efforts to identify any weaknesses or areas for improvement. This may involve conducting regular internal audits or external assessments of the firm’s operational risk management.

Maintain accurate records: Accurate and detailed records are critical in managing professional liability risks. The firm should document all client communications, maintain accurate workpapers, and keep records of all decisions made during engagements, all financial transactions, and data in compliance with applicable laws and regulations. This risk mitigation practice includes keeping detailed records of employee hours, expenses, and financial transactions.

Monitor and respond to online reviews: Online reviews can have a significant impact on a firm’s reputation. Firms should monitor online reviews and respond to any negative feedback in a timely and professional manner. By engaging with clients online, firms can show that they care about their clients’ experiences and are committed to resolving any issues.

Above are the risk management strategies and mitigation practices that are used by CPAs and accounting firms across the globe. We hope that this detailed article will help you upgrade your risk management models!

Connect for Accounting Offshoring Support

By partnering with an experienced offshore accounting services provider Finsmart Accounting, CPA firms can access a team of professionals who are knowledgeable about the latest technologies, up to date with ever-evolving accounting norms, and also domain experts in US accounting. 

In addition, offshoring can also help to streamline operations, reduce costs, improve the overall quality of services provided to clients, and manage risks. 

Share your thoughts

Would you like to know more about managing risk effectively to grow your accounting practice? Start the conversation below or check out our recent blogs on offshore accounting:

Ensuring data confidentiality & security 

Tips to engage the best bookkeeping outsourcing company in India 

2023 strategies to expand accounting business

India entry services to expand and scale in India 

LEGAL DISCLAIMER

Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has a different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language

The post Effective Risk Management Strategies for CPA & Accounting Firms appeared first on Finsmart Accounting-international.

Most of our clients have had a lot of inhibitions about outsourcing in the beginning but once they joined hands with us, the value was clearly visible. We – as the leading outsourced accounting company in India – created this post to help CPAs learn about the top benefits of outsourcing accounting services.

Benefits of outsourcing accounting

Here are the top 3 benefits that our clients tell us they have gained while working with us in addition to the usual Cost Savings one:

Scalability

Outsourcing accounting services can provide CPA firms with the ability to scale their services up or down as needed. This can be especially beneficial for firms that experience fluctuations in business volume.

Increased Efficiency

Outsourcing accounting services can increase efficiency by allowing CPA firms to focus on their core competencies while outsourcing non-core tasks to specialized providers. This can help to increase productivity and reduce costs.

Improved Service Delivery

Outsourcing accounting services can help CPA firms to improve their service delivery, by providing access to a larger pool of skilled professionals and advanced technology. This can help to improve the quality of services and increase client satisfaction.

Outsourced accounting for CPAs: Final words

We hope that the above post helped you in learning about the top benefits of accounting outsourcing for CPAs and accounting firms. Remember, always check online reviews and market reputation before outsourcing your seasonal accounting work.

Have queries to ask? Drop them in the comments or email us at info@finsmartaccounting.com to get a quick reply from our team of accounting experts.

Also, check out these recently penned resources and blogs:

Learn how to scale up business during tax season

Discover accounts payable outsourcing companies in India

Partner with the best payroll outsourcing company in India

The post CPAs, Ease Your Tax Season. Here’s Top 3 Benefits of Outsourcing appeared first on Finsmart Accounting-international.

The first 4 months of every year keep entrepreneurs and tax preparers on the tenterhooks. After all, they have to look into the financial data and file income tax before the deadline arrives. But just like every fiscal year, the 2023 tax season also brings new details including increased standard deductions, adjusted tax brackets, and changes in common tax credits and deductions. 

In this blog, Finsmart Accounting – trusted by CPAs for accounting outsourcing in India – will share everything important about the 2023 Income Tax season. 

Let’s start with the main details first! 

What Details to Keep in Mind for 2023 Tax Season? 

Here are the key details that business owners and accounting firms in the United States need to be familiar with for a successful tax season 2023: 

• Tax filing deadline: Usually, tax filing day is set for April 15th unless this date falls on a weekend or a holiday. This year, the deadline has been set to April 18th of 2023 for all federal tax returns and payments.  

• Extension deadline: The deadline for requesting an extension is October 16th of 2023 in case you find it difficult to file the federal tax return by the regular due date. 

• Standard deduction increase: The standard deduction for 2022 has been increased to $12,950 and $25,900 for single filers and married couples filing jointly respectively. Need spoilers for the 2024 tax season? The standard deduction rate for 2023 will increase to $13,850 for single filers and $27,700 for married couples filing jointly. 

• Tax bracket increase: The income tax bracket went up in 2022, thanks to inflation. One more spoiler so you can prepare in advance for tax season 2024: tax bracket will expand further in 2023. 

Accounting Seat from Finsmart has done wonders for hundreds of accounting firms in the USA. Check out what this accounting firm has to say about us:

• VAT returns: The deadline for submitting Value Added Tax (VAT) returns is one month and seven days after the end of the VAT period, regardless of whether you pay your VAT on a monthly or quarterly basis. 

The following are the key dates for submitting VAT returns during the tax season 2023: 

• April 7th, 2023
• May 7th, 2023
• June 7th, 2023
• July 7th, 2023
• August 7th, 2023
• September 7th, 2023
• October 7th, 2023
• November 7th, 2023
• December 7th, 2023
• January 7th, 2024
• February 7th, 2024
• March 7th, 2024

Now some of you might say, “Hey, tell us more about standard deductions and tax brackets. Don’t finish this off with a cliffhanger.” Fret not. We will discuss these thoroughly as we proceed further in the blog! Let’s first look at what’s must-have for tax season 2023.

What Do I Need for Tax Season 2023? 

One of the biggest problems that young taxpayers in the United States face is limited knowledge about the right documents for filing taxes. Just like you need to show your license, auto insurance proof, and financing documents to the dealership while purchasing a car, you need to fill out and submit the right forms to the IRS to stay tax compliant. 

The paperwork begins with a W-2 form. CPAs and accounting firms will need to fill out a W-2 form for clients to show the total wages paid to employees and taxes withheld during the fiscal year. The 1099 form will come up afterward. 

We also suggest gathering the following forms during the tax season 2023: 

• Mortgage interest statement: Also known as form 1098, a mortgage interest statement will help you report mortgage interest paid for a specific year. 

• Investment income statement: This financial statement will show the US government how much your business did financially over a certain period of time. 

• Charitable contribution statement: This statement refers to form 1040, Schedule A. Charitable contribution statements are substantiations that IRS requires to claim a donation for tax deductions. 

• Receipts: These can be used as proof of payment to claim deductions on taxes, document expenditures on income statements, and authenticate the existence of assets on balance sheets. 

Once you get your hands on these forms and organize them accurately, you are all set to file your taxes or taxes for your clients (if you are a young CPA). These forms will also come in handy for tax preparers who are sailing through the tax season for the first time.

6 accounting and tax software used by tax practitioners in the USA

What are Income Brackets and Rates for 2023 Tax Season? 

As we said earlier, we won’t leave you with half information. Let’s first explain what exactly income brackets and tax rates are. 

The tax rate is basically the percentage of an income or amount of money that has to be paid as tax to the US government. Income brackets are used for distinguishing different groups of business owners whose income falls within defined levels. 

The tax rate is based on what tax bracket a business is in. The tax bracket rates went up to a few hundred US dollars because of inflation last year. Here’s the table for quick reference: 

What are Standard Rate Deductions for Tax Season 2023?

Next, we have standard rate deductions. These are basically portions of income not subjected to tax. Used to reduce the tax bill, IRS adjusts the standard deduction rates each year for inflation. For the 2022 and 2023 tax years, these have been set higher yet again. 

Here is the table of the latest standard rate deductions for businesses as well as accounting  firms: 

Need tax help for your business? Learn about US Tax Seat from Finsmart Accounting

What are Deductions and Credits to Consider for Tax Season 2023?

During tax season, accounting firms and CPAs usually find ways to reduce tax liability and help their clients keep more of their hard-earned money. One way to achieve this is through the utilization of tax deductions and credits. Tax deductions lower the amount of income that is subject to taxation while tax credits directly reduce the amount of tax going straight into Uncle Sam’s pocket.  

Here’s an overview of some deductions and credits available during tax season 2023: 

#1 Charitable deductions 

In comparison to the benefits offered in 2021 due to the pandemic, the changes in 2023 result in a decrease in the deductible amount. For instance, the $600 charitable deduction for non-itemizers is no longer available. But it is still possible to deduct qualified charitable donations made in 2023, provided that the individual itemizes their deductions. The limit for this, however, is 60% of adjusted gross income (AGI). 

#2 Medical deductions 

CPAs and accounting firms who are finding themselves with hefty medical bills this tax season might be able to find at least some tax relief. You can deduct any medical expenses above 7.5% of your adjusted gross income. Just make sure to itemize deductions in order to write off those expenses on the tax return. 

#3 Business deductions 

Another deduction change to consider during tax season 2023. If you are self-employed, you may be eligible to claim a variety of deductions on tax returns, including travel expenses and home office deductions. Unfortunately, home deductions are not available for clients who work remotely. 

#4  EITC credit 

The earned income credit (EITC) is a valuable tax benefit for low and middle-income households. It is a refundable credit. Meaning, if the credit amount exceeds the tax a client owes, he will receive the excess as a refund. The following are the income limits to qualify for the EITC credit during the tax year 2023: 

• A single filer with no children must have an AGI below $16,480
• A married couple with 3 or more children must have AGI below $59,187
• Individuals won’t be considered eligible for EITC credit if their investment income is over $10,399 if they are married filing separately. 

The amount of EITC one can claim will depend on income, filing status, and the number of dependents. EITC could potentially help families and business owners save thousands of dollars on taxes. 

Other tax credits that one should look forward to during tax season 2023 are: 

• Child tax credit
• Child and dependent care credit
• Education credit

Tax Season 2023: Final Words 

There you go! 

We told you about the most important aspects of tax season 2023. As American businesses and accounting firms gear up for tax season, it’s important to start preparing as early as possible. The upcoming tax season is expected to be particularly busy, so don’t delay to get your paperwork in order. 

If you’re a CPA or accounting firm with stretched resources, consider outsourcing some of your accounting and tax filing work to a reputed outsourced accounting firm like Finsmart. 

Our team of experienced tax preparers can help you avoid interest, penalties, and potential disruptions, while also ensuring that nothing falls through the cracks. Plus, we’ll work to maximize your clients’ future refunds and build a solid reputation for your business. 

If you have any questions, don’t hesitate to reach out to us at info@finsmartaccounting.com to Our bookkeeping experts will be more than happy to answer them for you! 

Check out these recently penned blogs and resources:

Everything about FaaS accounting

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Here’s how to scale up during tax season

Discover accounts payable outsourcing companies in India

Partner with best payroll outsourcing company in India

The post Income Tax Season 2023: Everything You Need to Know appeared first on Finsmart Accounting-international.

Though we are always pleased to answer queries, there are some questions that pop up in every other engagement with potential clients. That’s why we thought answering the most common accounting firm questions makes perfect sense.

In this post, Finsmart Accounting will answer 5 questions that we frequently come across as an offshore accounting firm. These are also worthy questions to ask your to-be accounting firm to confirm their expertise and professionalism. 

Without further ado, let’s look at the most common accounting firm queries that we answer for our potential clients: 

#1 Why Offshore accounting makes sense? 

Although a lot of CPAs and accounting firms in the US hire in-house staff for supporting more bookkeeping, AP, and AR clients, it can be overly expensive and often culminates in too much management direction. Offshore accounting services by Finsmart provide the same quality at almost 40% less cost and feels almost like working with the in-house team. 

Accounting outsourcing in India helps save time that would have been otherwise wasted on recruitment and training cycles. And that’s not it! Here are some more reasons: 

• It resolves the problem of the accounting talent crunch in the USA
• It helps you scale your accounting practice with ease
• It reduces your business costs by almost 50% for some functions
• You get accounting professionals who are software agnostic. 

The benefits of outsourcing accounting are indeed massive. 

#2 What to Offshore in Accounting and Bookkeeping?

We get this question a lot during initial meetings with accounting firms, CPAs, and businesses. When it comes to offshore accounting and bookkeeping services, accounting and CPA firms can outsource tasks that are repetitive in nature and where complex decision-making is not expected from hired resources. Every accounting function where processes are (or can be) well-defined can be outsourced with ease. 

Here are accounting processes that are widely outsourced: 

• Bookkeeping
• Accounts receivable and payable 
• Reporting
• Tax Preparation 

Outsourcing the accounting functions to Finsmart will not only guarantee impeccable accuracy, scalability, and consistent results but also scale your business to a faster rate. 

By combining AI with human expertise and time-tested processes, we bring efficiency and control thereby reducing costs and helping clients improve their business cash flow.

Learn more about the best accounts payable and receivable services in India

#3 What are the Key Elements of Accounting Offshoring?

When you partner with Finsmart Accounting, you benefit from lightning-fast deployment of accounting resources. As soon as we get a clear understanding of your accounting goals, timelines, and business requirements, we will be ready to dedicate accounting, bookkeeping, AR/AP, or consulting resources in terms of dedicated or hourly support from seasoned accountants and bookkeepers. 

A lot of CPAs and accounting firms in the United States want to know what key tasks we carry out to effectively and efficiently manage the accounting process on behalf of our clients while guaranteeing confidentiality, integrity, professionalism, precision, and promptness. 

Here are the key elements of accounting offshoring services rendered by Finsmart, trusted for outsourced bookkeeping services in India:

• Document gathering: Our team of experienced accountants gathers and vets clients’ documents to understand financial transactions taking place within the company. 
• Transaction processing: After gathering critical insights, we begin processing day-to-day transactions such as purchases, expenses, sales, and receipts for creating meaningful routine reports including profits & loss a/c and balance sheet. 
• Month close: With the help of collected financial information, we review and reconcile our client’s records at end of every month. It not only helps in maintaining accurate records but also supports figuring out any discrepancies before the fiscal period. 
• Query resolution: Our accounting and bookkeeping experts handle, track, and resolve financial as well as invoice queries to make the accounting cycle smooth and error-free for clients. 
• Reporting: Finsmart examines a company’s financial strength and underlying value and provides detailed reports analyzing performance over the period. 

#4 How Does Offshoring Model Work?

Indeed a great question to ask accounting firms to get a crystal clear idea of their work process. Leading accounting firms like Finsmart Accounting nowadays use a scientific offshoring framework named DPPT in order to make the process of outsourcing smooth and efficient. 

Here are the framework stages that are critical to our process: 

• Definition: We dedicate time to understanding the requirements of our clients by creating a task list of what needs to be done. This allows us to offer a more personalized solution that satisfies all the accounting needs of clients. 
• Process: Once we get a clear picture of our client’s offshore accounting needs, we start to process how exactly we can meet them consistently in the short as well as long run. This is where onboarding and training happen. The process is collaborative and ensures that hired resources are working towards a common goal without hiccups. 
• Precision: By helping hired resources clearly understand the dos and don’ts for every client, Finsmart makes sure that the work starts on a smooth note and proceeds in the same way.
• TAT: For those who don’t know, turnaround time (TAT) is the total time given or needed to finish a set of tasks. Finsmart engages with clients to understand the timelines for different deliverables. Be it reporting or invoicing, a timeline is finalized and clearly stated for everything. 

#5 What are your Engagement Models? 

Almost every CPA or accounting firm that wants to leverage our bookkeeping and AP/AR services to boost the profitability of their accounting practice rightly inquires about engagement models on offer. 

Finsmart Accounting offers 3 types of engagement models to accommodate client requirements: 

• Dedicated accounting seat: This engagement model will allow you to outsource work to our dedicated team for a fixed monthly fee. Besides saving time and money spent on recruiting and retaining in-house staff, the dedicated accounting seat offers you immediate access to resources with highly coveted accounting skills. 
• Hourly seat: Our hourly engagement model is most popular among US-based CPAs and accounting firms. As the name itself suggests, our bookkeepers will manage your financial data and streamline accounting operations on an hourly basis. Finsmart’s hourly pack starts from 10 hours/month. 
• USA tax seat: By opting in for the USA Tax Seat, you will get qualified and trained resources dedicated to you and your client’s tax work. Our team of skilled tax preparers are helping CPAs and accounting firms with the cumbersome task of filing and preparation of tax returns and tax payments for more than a decade now. 

Pro tip: We highly recommend figuring out your business needs first. Undertake thorough research on different engagement models. Pick the model that best fits your requirements. 

Questions to Ask Accounting Firms; Endnote  

Above are some questions that frequently come our way when assisting new accounting firms and CPAs interested in offshoring. In case we missed the question you had in mind, please drop the same at info@finsmartaccounting.com and our team will answer it. 

Finsmart Accounting can help efficiently manage accounting, bookkeeping, and compliance, giving your business an advantage over competitors. We also support offshore clients with India entry services to help them with business expansion.  

Our team consistently creates fresh blogs, guides, and resources to help businesses and CPAs grow their business. Check out the recent ones!

Tips to choose best outsourced CFO services

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The post 5 Questions that Accounting Firms and CPAs Ask Us Before Outsourcing appeared first on Finsmart Accounting-international.

Facts

The company/CPA Firm is based of USA and a member of AICPA with its operations spread across nation. The firm is handling more than 800 clients, where Bookkeeping and Reconciliation activity was fast becoming tedious and time-consuming activity impacting business growth. Sighting the current situation the management decided to hire a professional and scalable team which can be increased during tax season and can be downsized during the rest of year.

Solution

Within a span of 3 working days – we helped our client to have a dedicated team of 4 resources working on client software and following client time sheets and processes. Weekly calls with the clients helped us to understand clientexpectations and align our processes accordingly. Reviewing process at our end helped client to received error free output which in turn increased productivity at their end.

Value that was added

With this engagement we were able to help our customer, focus more core activities (Business Growth) and create additional avenues to spread their footprint. Our flexible service model helped them to scale up team during tax season and then downsize the same afterwards. Recently, with us at their back they were confident to shift their operations to a new software platform and Finsmart Solutions is geared up to take the new project with utmost confidence.

The post Bookkeeping and Reconciliation Services For USA Based Company appeared first on Finsmart Accounting-international.

In the current time, it is challenging to find a qualified and eligible person or agency to grant their accounting or bookkeeping services at an affordable price.

It is very challenging for small businesses, entrepreneurs, and startups to get an accountant because of the lack of money.

They need the right people with the right skills to prepare for their company’s financial statements, manage bank account operations, prepare the outgoing invoices, and analyze financial data.

Most of the small companies do not feel comfortable doing accounting independently. Around 30 percent of small businesses are going with outsourcing accounting and bookkeeping services.

Apart from that, it is commonly believed that bookkeeping must be done in-house. But before that, the companies must ask themselves if they have adequate skills and experience to do this job.

Nevertheless, companies can deal with all the tasks within the organization and can increase the accounting tasks. And after all this hassle they will end up overpaying the taxes.

Now you must have understood why it is necessary to have the right person for the right job. You must consider outsourcing accounting services to the company with the right expertise and knowledge about the domain. It will help you to do your particular job more qualitatively and cost-effectively.

Therefore, many companies consider outsourcing bookkeeping and accounting services to scale their business without affecting the harmony of business, employees, and customers.

Benefits of outsourcing accounting and bookkeeping

Here we are going to share the 9 excellent benefits of outsourcing accounting and bookkeeping tasks:

1. Cost-effective:

Most of the businesses’ perception of outsourcing is that they think it is costly as compared to inhouse Accountants. But in reality, it is opposite to their perception.

Many accounting companies in India offer their services at an economical cost and they charge based on the volume of transactions. So you can scale your servie up and down based on the business, Further in inhouse Accountant you may not get all the relevant expertise and if they goof up the cost of non-compliance becomes heavy, so considering all this Outsourcing is a cost effective and efficient solutions

Further by outsourcing services remotely, you ultimately save money on office supplies, snacks, travel expenses and many more things. You only have to pay for what you need.

2. Achieve a high level of accuracy:

You will achieve a high level of accuracy by outsourcing bookkeeping services. Experts know their job better than anyone else; therefore letting accounting professionals doing their job will give you far better accuracy as compared to inhouse accounting.

3. Elimination of hiring cost:

If you see the image of any recruitment process from its base, you could find that it is a very rigorous job and takes many resources to manage that procedure.

You also have to make recruitment strategies like making ads and taking interviews, which cost a lot of force. It needs dedication which many companies can’t afford.

But in doing this many of the companies do not think about what cost and hassle it takes to get an accountant through this process, therefore, they could afford it and correlate it with equal time and expenses. Therefore this must be accounted for savings from outsourcing business processes.

4. Saves your time:

We have seen that after the growth of any particular business, they find themselves spending more time managing the money and less on the business.

This is why you should consider outsourcing bookkeeping, which helps you focus on your business with total energy. The accounting companies perform the administrative works to manage the accounts and spending of money.

5. Helps in straightforwardly scaling the account:

The accounting service providers have an efficient amount of availability to scale the business services in a significant and well manner, with no lagging. For example, if your bookkeeping tasks exceed one employee’s function, you can easily be enforced with the extra workforce.

Accounting definitions and terms for small businesses

6. It reduces the chances of fraud:

The accounting and bookkeeping companies use automation technologies or softwares, which reduces the risk of mistakes, and it also saves time. It minimizes human error, and even regular reports reduce the chances of internal frauds.

7. Timely Reporting:

When the accounting is outsourced they ensure you get timely MIS and Reports needed to run your business. In inhouse accounting you will have to strive to get the timely reports from the Accountants.

8. Reaping benefits from up-to-date technology:

Accounting companies are up to date with the happenings and new technologies in their industry. Due to new technology advancements, companies could systematically progress by using them optimally.

9. New ideas:

The outsourced companies have the diversified nature in which customers from various places and locations are linked with those companies. Therefore the next level of creativity comes when many brains are involved in reaching a particular goal.

When you should outsource your accounting and bookkeeping?

You should consider outsourcing accounting and bookkeeping work when managing all the matters becomes tricky and seems very difficult.

You could choose to outsource when you cannot handle the workforce on time at an affordable cost. You could get that from another company where the workforce came in a remote location with less expense.

If you think that there is an internal error or fraud in your company, you should involve a third party in the picture.

When your mind is stuck and needs some extra advice from the professionals or experience one, then you should go for it. It makes that easy to handle your business with the headache-free mind.

Things to consider before outsourcing

The following things which you should consider before outsourcing is that:

You have to find all the management team who will lead your offshore team and check for their required exposure and experience; this will help you achieve your goal.

You have to check for their service level agreement in which the sign documents of the outsourcing partnership are written.

Check for the pricing and compare it with the other vendors and then go for that. Level of flexibility, have to be checked for flexibility and proper communication with them have to be done.

Conclusion

Thus, we can say that outsourcing accounting and bookkeeping services could play a vital role in enhancing your company’s services. It helps in appropriately managing the company by saving your time and cost.

From the article, we understood that the advantages of outsourcing accounting and bookkeeping are that it reduces the cost, enhances the quality of the product, gives human resources at a lower cost, and increases the profit. It reduces the company’s investment. It emphasizes the efficiency as well as the effectiveness of that company.

Also, learn about our services:

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Offshore AR /AP outsourcing has become a proven strategy for organizations to create efficiencies in costs and time, and deliver better value to their customers. According to a 2021 Report Linker study, the finance and accounting outsourcing market is projected to grow by US$16.7 billion. But even with its impressive track record, accounting outsourcing is viewed through a lens of skepticism by many. Unfortunately, popular misconceptions about outsourcing have persisted in the collective imagination, preventing many businesses from fulfilling their true potential. Let us consider three common myths and then peel back the surface to look at the ground reality.

1. “The outsourcing service provider does not know my organization’s processes or the industry’s nuances”

Accounting outsourcing companies such as Finsmart are comprised of experts who have significant experience across industries, working on AR and AP for organizations of all sizes. The average in-house accountant cannot be expected to have the same exposure. Our resources are trained and experienced in understanding the protocols of clients and following them to the tee. Any time there is a task that requires specialized knowledge, a resource with expertise in that aspect will step in to accelerate the process.

You can also read more about how outsourcing can save you the hassle of training and retraining employees in our blog here.

2. “Outsourcing isn’t necessary when implementing technology solutions can achieve the same results”

Bill Gates famously said that “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” This point is extremely valid in the ‘outsourcing vs. technology’ debate in the context of AP and AR. 58% of large firms use cloud-based accounting software, according to a 2020 report by Entigrity. However, while tasks can be automated and accelerated by technology, unless they are underpinned with sound business processes, the results are bound to disappoint. Technological capabilities may not be used optimally if a culture of maximizing productivity has not been carefully cultivated over the years.

Accounting definitions and terms for small businesses

Outsourcing companies, on the other hand, are incentivized to continually hone and refine processes to achieve maximum efficiency. By onboarding an outsourcing company, you are leveraging their proven processes. When a technology layer is then added on top of this foundation of sound practices, the maximum value can be drawn out of your AR and AP function. With Finsmart as your ‘Intelligent FinOps partner’, you are leveraging optimized processes and cutting-edge technology at the same time.
With Accounting Seat, you need to conduct training processes only once. There will be no need for retraining ever again. Knowledge transfers will happen internally on our end with no support required from you. Our teams are well-versed in a wide range of accounting software platforms which means time required from your organization on software training sessions will most likely be non-existent, or minimal if at all.

3. “Outsourcing means downsizing and layoffs for employees”

While outsourcing can be an effective tool in reducing headcount, it does not necessarily entail downsizing. The flexibility offered to you by outsourcing means that resources can step in to supplement your internal team to better handle seasonal demands and surges in workload. This translates into better work-life balance and satisfaction for your team members during grueling work cycles such as those typical of the tax season.

Employee attrition rates are already high in the accounting field with burnout and long hours frequently cited as reasons. According to AICPA’S Journal of Accountancy, 2020-2021 was one of the most brutal tax seasons for CPAs in recent history. But the problem is exacerbated by the fact that more CPAs are retiring than entering the field. Outsourcing can put an end to the churn and make your employees feel supported. The reduced attrition rates will help you to focus on strategic areas rather than grappling with your talent pipeline and managing deadlines.

Understanding outsourcing

Outsourcing is meant to be a tool in empowering your organization to meet its business goals by shifting your attention from operational details to strategic focus areas. In this blog, we have inspected some of the assumptions about outsourcing. However, even many of the benefits of accounting are not understood well enough. Most companies view cost-savings as the sole criterion to measure the impact of outsourcing when in fact, your intelligent FinOps partner can offer you a plethora of hidden benefits such as improvements in vendor relationships, a more satisfied supply chain, better controls and much more.

In an increasingly competitive business landscape, it is vital that you embrace the strengths and efficiencies that outsourcing can impart to your organization.

Also, learn about our services:

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With advances in technology and changes in the business landscape, businesses are re-evaluating which functions of their organization will benefit from in-house resources and which will not. After all, people are one of the biggest investments that companies spend in terms of cost and time. Managing people involves incurring various costs that can bog down the company. Managers believe that they have more process control when they have dedicated bookkeeping resources in-house even when that is not the case. They also often fail to see the lack of productive output, lack of exposure to cross-industry expertise and other consequences of this mindset. In this blog, we will explore the hidden and visible costs of in-house accounting resources and how you can overcome these challenges.

Revenue traps from recruiting to training to retraining

There is a significant investment of time that is involved in hiring an in-house accountant and it begins even before recruitment. It starts right from devising the recruitment strategy, which takes up precious man-hours for your HR, accounting department, supervisors and CFO. Short-listing and interviewing the candidates and conducting background checks also divert time away from important tasks.

Once recruited, there will be a significant learning curve. There will be industry-specific, project-specific and other specialized information that they will require familiarization on. Today’s businesses use a wide variety of accounting software platforms. The onboarding process, therefore, demands a period of software training too. On-the-job training will have to be undertaken by supervisors and senior employees, triggering a cascading effect of reduced productivity. It can take between weeks and months for an employee to get fully trained and comfortable to deliver to their fullest potential.

While the resource is in the onboarding stage, they are losing money for the company. It is only after a substantial period that the company reaches a break-even point. This problem is exacerbated if most of the resource’s work is not on revenue-generating work. After spending considerable time and money on hiring and training an employee, they may choose to leave your organization for various reasons. This leaves the company back at square one, and employee retraining can be even more expensive.

Accounting definitions and terms for small businesses

Taking advantage of outsourced teams

In-house employees may not work optimally throughout the day, which means you will be paying for man-hours that are not utilized productively in improving your bottom line. By investing in outsourced teams instead, you can drive down your accounting costs by 50% while improving scalability, efficiency and accuracy.

With Finsmart’s Accounting Seat , you are leveraging cross-industry expertise in accounting. Our teams have a vast amount of knowledge gleaned from working with various companies. They are exposed to the latest trends and technology and trained on an on-going basis. If new developments arise in the broader accounting and financial realm, our resources would have already undergone training on the same and would be immediately deployable on tasks that require the updated skills.

With Accounting Seat, you need to conduct training processes only once. There will be no need for retraining ever again. Knowledge transfers will happen internally on our end with no support required from you. Our teams are well-versed in a wide range of accounting software platforms which means time required from your organization on software training sessions will most likely be non-existent, or minimal if at all.

With our Accounting Seat Subscription model, you can downsize or upsize your accounting function as per your needs without worrying over personnel-carrying costs, and have access to resources with higher expertise and cross-industry knowledge.

Making the switch

Many companies do not identify the hidden costs and opportunity costs of hiring in-house accounting resources. They are bogged down with personnel-carrying costs and training procedures that cost the company dearly in the long run. They also fail to identify the streamlined processes, technology expertise and other strengths that outsourced teams can bring. Leveraging outsourced accounting teams needs to be viewed not just from a cost-saving perspective but also from the perspective of accessing superior expertise and dynamic capabilities.

If you want to know more about how we have helped companies improve their productivity and drive down costs with our Accounting Seat, click here.

Also, learn about our services:

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Consequently, the outsourcing service sector is booming in India, with accounts and finance forming the major part of the outsourcing services that India is providing. 

Outsourcing the back end bookkeeping services to India can benefit CPA firms in the USA through the following ways:

1. Cost-effective approach

India offers labor at a lower cost than the labor costs in the developed nations like the USA and Canada.

Thus, the professionals taking care of the finances and accountants will demand a relatively lower payment than their foreign counterparts, doing the outsourcing service cheap for the USA-based CPA firms. These firms get the finest and proficient services in return for low-cost charges.

2. Increases work productivity

Ensuring an efficient flow of operations is where businesses focus the most. The CPA firms may not possess an unlimited budget or resources, which is where the outsourcing services come at aid. These accounts outsourcing service providers from India have all the necessary inputs that accelerate the productivity of small-scale CPA firms.

3. Comes up with top-notch infrastructure

The outsourcing service providers hailing from -India proudly own exclusive infrastructure facilities, much to the CPA firms’ advantage. This enables smooth functioning, allowing the international services to receive the finest services.

From optimum internet connectivity to required software and tools, Indian accounting outsourcing firms have everything in place. Thus, the USA-based accounting firms can have wide potential to draw out the best services, spending some minimal amounts.

4. Consultations and Support that come alongside

Besides providing cost-effective services, the Indian outsourcing units can offer legal support and assistance to the newly emerging CPA firms during complex circumstances.

These outsourcers have all the necessary knowledge about the international systems of accounting and taxations, IFRS, and GAAP, which allow them to offer expert advice and consultation to the partnered CPA firms. This, in turn, provides the growing CPA entities to work, function, and manage things better.

5. Can work with all scale and sizes

The outsourcing service providers from India can partner with diversified firms and cater to various scaled firms’ needs. This flexibility makes the Indian account outsourcing service providers advantageous for all types of CPA firms.

Moreover, they are flexible with various time zones, making it possible to work for a prolonged period for some projects without compromising the quality.

6. Legal policies are supportive

The Indian administration has offered a favorable and profitable environment to the outsourcing sector by putting unnecessary restrictions, rules, and regulations on foreign firms.

Rather, the policies are quite favorable and suitable, thus helping in further blooming up of this sector and inviting the international businesses’ attention for outsourcing.

Conclusion:

Undoubtedly, the brands from developed countries looking forward to expanding or taking their businesses to the next level look towards talented and skilled Indians to derive the finest services.

So with the advantages of cost-friendliness, efficiency, and latest technology, outsourcing accounting services to India can free up the extra load from the USA-based CPA firms and help them scale up their business.

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