This article presents some of the most reputable finance and accounting outsourcing companies you can use to address your capacity needs today.

Why Businesses Are Prioritizing Finance & Accounting Outsourcing in 2025

• Post-Pandemic Digital Push

Only a few firms ever considered outsourcing before COVID-19. But with the lockdowns forcing every firm to work from home, firm owners had to find more reliable ways of getting work done without sacrificing quality.

This new system opened firms up to the reality of hiring not just within their countries but also abroad, allowing them to take advantage of knowledgeable and qualified accounting talent in foreign countries.

• Inflation and Cost Optimization

With inflation (always) on the rise, businesses are forced to find creative ways of doing more with less, and one major way is to outsource as many of their services as possible.

Outsourcing allows them to pay a fraction of a full-time employee’s salary to get qualified finance and accounting professionals. They don’t have to worry about an expensive hiring process, salary, and employee benefits.

• Rise of Remote Finance and AI-led Automation

Thanks to remote work tools like practice management software with AI features, team members can complete tasks faster and collaborate from opposite ends of the world with little to no misunderstanding and information gap.

This has enabled top finance and accounting outsourcing to ensure accurate and compliant financial reporting for their clients.

• Outsourcing as a Strategic Growth Enabler

Outsourcing allows you to manage increased client demands more confidently. It gives you the flexibility to add and reduce your workforce as your workload ebbs and flows.

This assurance of capacity sufficiency enables you to take on as many clients as you need to grow your firm. The top finance and accounting outsourcing companies do not require long-term commitment, so you won’t have to worry about severance packages when an outsourcing relationship ends.

What Makes a Top Finance and Accounting Outsourcing Company?

• Domain Expertise and Certifications

Reputable finance and accounting outsourcing firms have strict educational requirements, which play a crucial role in their hiring decisions.

Indian outsourcing companies, for example, use certified chartered accountants and CPAs who are well-versed in global financial reporting standards (GAAP, IFRS, etc.).

You wouldn’t need to train them on accounting procedures, as Rebecca Sanitago can confirm:

“Our outsourcing partner, The Finsmart Accounting team, already knows the accounting processes. That means I don’t have to train somebody, like I had done in the past.

All I do is provide the client context so that they can apply their accounting, QuickBooks, and reconciliation knowledge to the specific issues of that client. I don’t have to show them how to do accounting.”

—Rebecca Santiago, Owner, Advance Professional Accounting Service

• Technology Integration

Outsourced accounting teams can use the latest software programs to automate manual work and streamline accounting processes.

So, instead of worrying about training them on how to use the tools you currently use, they’re even more likely to teach you how to use software solutions like NetSuite, QBO, Xero, Karbon, Financial Cents, Liscio, etc.

“The Finsmart team can work with any software you have. QuickBooks Desktop, Xero, Bill.com, you name it!

They are experienced. There is no learning curve, so we don’t have to train anybody. They’re already trained.

—Mariko Hayashi-Hall, Founder and CEO of Chicago-based Brilliant Solutions Group

• Global Delivery and Time-zone Alignment

Having all your team members in one time zone helps with real-time collaboration, but that makes it difficult to always have someone attending to client work.

Many US firms outsourcing to India have appreciated the time zone alignment, even though both firms are 11 hours apart.

The time zone difference allows firms in the US to assign work to their teams in India, knowing they will wake up to completed tasks ready to move to the next stage.

• Client Support and Scalability

By nature, outsourcing firms allow you to expand on your terms with flexible staffing resources that allow you to quickly and easily increase your staff strength to meet increased client demands.

Without this flexibility, you either hire more staff ahead of client demand or do it after the fact. Either way, you’ll risk over- or underutilizing your team members, which could amount to a waste of precious resources.

Since working with Finsmart, we have had one main person who has been with us the whole time, and she has continued to learn and develop with us. When we had to bring on additional projects, Finsmart had additional staff to help us during that process.

—Elizabeth Bergen, owner of Foray Business Group

• Regulatory Compliance

Outsourced finance and accounting professionals are usually up-to-date with their clients’ changing financial reporting needs.

Their training in global financial reporting standards and tax regulations (GAAP, IFRS, SOX, IRS, etc.) enables them to guide your clients through difficult financial situations. That is why some of them can boast of an average client retention rate as high as nine (9) years.

Top 10 Finance and Accounting Outsourcing Companies in 2025

• Finsmart Accounting #1

At Number One is Finsmart Accounting, founded by a Chartered Accountant (equivalent of CPA). Its team of 100+ expert accountants and its comprehensive range of services position it as a one-stop solution for growing accounting, bookkeeping, CPA, and tax firms in the US, UK, Australia, and beyond.

Headquarters: Finsmart is headquartered in Pune, India, with offices in Mumbai and New York.

Key Services: Finsmart’s breadth of services includes bookkeeping, AR/AP, payroll, audit support, virtual CFO, and NetSuite-driven accounting automation and reporting.

Clients Served: over 300 accounting firms, CPA firms, global CFOs & Businesses (wanting to gain entry into India.

Key Strengths: Finsmart’s TAT framework (which encourages timely reporting) and expertise in finance and accounting software (like NetSuite) save its 150+ clients up to 50% on costs while ensuring accuracy and scalability. This has enabled the firm to retain clients for up to 9 years on average.

Certifications/Tech Stack: Finsmart emphasizes data security and compliance training for staff. Its security and technology certifications include SOC II, QuickBooks, and NetSuite certifications. Apart from NetSuite and QuickBooks, the team is proficient in Xero, Bill, Asana, Financial Cents, Microsoft Exchange, and Dropbox.

Why It’s in the Top 10: Finsmart was founded in the early stages of outsourced finance and accounting services. This early entry, NetSuite specialization, and domain expertise have ensured consistent quality client service, earning it this top spot.

Finsmart Pricing:

• Dedicated Seat at $2600/month for a dedicated bookkeeper (who will work 160 hours a month).
• Hourly Seat at $20 per hour.
• USA Tax Seat at $3000/month (for a dedicated tax accountant who will work 160 hours a month).

TEAM MEMBER SPOTLIGHT

Seemantini Karmarker is a chartered accountant and a US accountant and tax manager at Finsmart Accounting.

She joined Finsmart Accounting in May 2023, and since then, she has used her expertise to work on various US tax forms and accounting software.

For each client she’s assigned, she spends a fair bit of time trying to understand the client’s business processes to enhance their workflows.

Her accounting skills include:

• Bank Reconciliation
• Account Reconciliation
• Tax Planning and Preparation
• Auditing support
• Financial Reporting

“At around 15 clients, I completely ran out of capacity. I was working around the clock, seven days a week. I ran out of time, space, and the ability to take on more clients and grow. I did not want to be in a position where I was turning clients down.

Using Finsmart has freed up my time to onboard new clients. As I grow, I’ll be assigning more clients to them, so I can focus more on advisory and supervision as opposed to the back office operation of bookkeeping. Finsmart does the back office operation so well.  They have allowed me to add clients and grow with them.”

—Adrienne Dove, Founder, Corban Accounting Solutions

• InDinero #2

InDinero is a full-service finance and accounting outsourcing firm for small and enterprise-level businesses that need help focusing on their core business.

Headquarters: Covina, California. USA.

Key Services: bookkeeping, AR/AP, payroll, CFO advisory, business tax, technology implementation, and business intelligence.

Clients Served: all businesses in technology, professional services, nonprofits, e-commerce, and healthcare lacking full finance departments.

Key Strengths: Provides end-to-end finance and accounting services and technology, including monthly financial reviews, ensuring strategic alignment and profitability.

Certifications/Tech Stack: inDiero employs CPAs and financial advisors who are fluent in QuickBooks, Xero, and other cloud-based automation tools.

Why It’s in the Top 10: InDinero’s holistic approach to finance and accounting has helped business owners to keep more money in their business for over 13 years.

• QX Global Group #3

QX Global uses a 3-pronged approach that blends people, process & platform to provide outsourcing solutions that help enterprise businesses manage their capacity.

Headquarters: Skipton, North Yorkshire, UK, with offices in other countries.

Key Services: bookkeeping, financial reporting, accounts payable/receivable, payroll, tax, and audit support.

Clients Served: over 100 enterprise clients in 15 industries (accounting, manufacturing, and public sector).

Key Strengths: QX Global’s 24-hour service delivery and “3P” approach ensure access to niche expertise at a more cost-effective rate.

Certifications/Tech Stack: SOC 2, GDPR-compliant staff. Its tech stack includes QuickBooks, Xero, Microsoft Clarity, and Power BI.

Why It’s in the Top 10: Its 22 years of experience have enabled it to grow its client base through consistent client service.

• Connext Global #4

Connext Global Solutions provides accounting talent through global talent integration. Connext supports its finance and accounting talents with the personal and professional help they need to be productive and efficient in client service.

Headquarters: Honolulu, Hawaii, USA, with delivery centers in the Philippines, India, Mexico, and Colombia.

Key Services: bookkeeping, accounts payable/receivable, payroll processing, and IT support.

Clients Served: 50+ middle-market clients in construction, accounting, healthcare, real estate, insurance, and retail.

Key Strengths: High employee retention that saves hiring costs.

Certifications/Tech Stack: HIPAA-compliant for a healthcare accountant. Its tech stack includes QuickBooks, Xero, cloud-based automation, etc.

Why It’s in the Top 10: The diversity and agility of Connext’s outsourcing agile model have continued to drive growth for middle-market firms for over 10 years.

• CapActix #5

CapActix partners with accounting and non-accounting businesses to grow their businesses with flexible hiring models.

Headquarters: Ahmedabad, India.

Key Services: bookkeeping, tax preparation, virtual CFO, and digital transformation.

Clients Served: 100+ CPA firms and SMEs in real estate, e-commerce, manufacturing, hospitality, agriculture, etc.

Key Strengths: capable of catering to non-accounting businesses in real estate, health care, manufacturing, etc.

Certifications/Tech Stack: ISO 9001:2015, ISO 27001:2013, and GDPR certification. Tech stack includes QuickBooks ProAdvisor, Xero Advisor certified. Tech stack: QuickBooks, Xero, Sage, RPA, Zoom.

Why It’s in the Top 10: CapActix has advanced security protocols and QuickBooks/Xero certifications to protect sensitive client data.

• Outsourced Bookkeeping #6

Outsourced Bookkeeping’s specialized services help accountants in North America to grow their firm’s capacity through outsourcing.

Headquarters: Punjab, India.

Key Services: bookkeeping, tax, accounts payable, and QuickBooks.

Clients Served: Accountants, CPA firms, and SMBs in real estate, retail, and professional services.

Key Strengths: ‘overnight’ bookkeeping that ensures 24-hour client service and 20 years of outsourced experience.

Certifications/Tech Stack: Tech stacks include QuickBooks, Xero, Bill, Microsoft Dynamics, R365, Propertyware

Why It’s in the Top 10: Outsourced Bookkeeping has served 500+ accounting firms with a 90% Client retention rate.

• RSM Global #7

RSM International is an integrated network of accounting firms that provides accounting and tax expertise to firms at all levels.

Headquarters: London, UK, with offices in the US, India, and El Salvador.

Key Services: accounting, bookkeeping, AR/AP, payroll, tax outsourcing, audit support, risk advisory, and technology consulting.

Clients Served: middle-market businesses, conglomerates, and SMEs in manufacturing, real estate, nonprofits, etc.

Key Strengths: Global reach of up to 65,000 professionals in 900 offices.

Certifications/Tech Stack: RSM Global’s professionals are SOC and GDPR-compliant. Tech stacks include QuickBooks, NetSuite, SAP, RPA, and Power BI.

Why It’s in the Top 10: RSM has global appeal and has made significant progress in tech innovation (AI and RPA).

• Unison Globus #8

Unison Globus partners with CPAs, EAs, and accounting firms to focus on client relationship building and firm growth.

Headquarters: Ahmedabad, India.

Key Services: bookkeeping, tax, payroll, AP/AR, audit support, and management advisory.

Clients Served: CPA firms, EAs, and CMAs in real estate, retail, and professional services.

Key Strengths: tailored systems that match their clients’ operations. A close-knit team that works collectively to address client challenges.

Certifications/Tech Stack: experts with ISO certifications (27001). Tech stack includes QuickBooks, Xero, Drake, ADP, Etc.

Why It’s in the Top 10: Unison Globus’ ISO 27001 gives it an edge over many finance and accounting outsourcing firms.

• Ignite Spot

Ignite Spot’s services provide businesses with the insights they need to make better financial decisions through consistency, community, and contagious improvement.

Headquarters: Kaysville, Utah, USA.

Key Services: bookkeeping, payroll, financial reporting, tax preparation, fractional CFO, and controller.

Clients Served: small to mid-sized businesses in professional services, media, e-commerce, and healthcare.

Key Strengths: personalized, profit-driven methodology for small to mid-sized businesses making $500,000–$20 million in revenue.

Certifications/Tech Stack: QuickBooks ProAdvisor, HIPAA/GDPR-compliant. Tech stack includes QuickBooks, Xero, Bill.com, Fathom, Rewind, HubSpot, etc.

Why It’s in the Top 10: its ability to help small businesses grow, as shown by the revenue growth of Huddled Masses Media’s 25x revenue growth in one year.

• Near #10

Near’s recruitment process outsourcing gives accounting firms access to finance and accounting talent. They manage the entire process from hiring to onboarding, payment, and retention. Unlike Finsmart Accounting, Near’s talent pool is exclusively from Latin America.

Headquarters: Lewes, Delaware, USA, with offices in Mexico, Colombia, Brazil, and Argentina.

Key Services: accounting and bookkeeping (through recruitment process outsourcing, end-to-end staffing, and employee of record services).

Clients Served: midmarket enterprises and fast-growing startups in technology, healthcare, e-commerce, financial services, and retail.

Key Strengths: Near’s nearshore model ensures cultural, time-zone, and communication similarity between US firms and their outsourcing partners.

Certifications/Tech Stack: Near’s Latin American talents have a CPA-equivalent certification. They can use software programs like QuickBooks, Xero, NetSuite, Sage, Power BI, etc.

Why It’s in the Top 10: A 360 solution to find, hire, onboard, pay, and retain top Latin American talent in under 3 weeks.

Top 10 Ranking Companies Compared

Why India and the Philippines Dominate This List

• Cost-Effective Talent

The cost of outsourcing to India and the Philippines is far less than the rest of the world, especially the US, the UK, and Europe.

In these countries, the labor costs combine with favorable exchange rates to give firms in America and other Western markets access to cheap, but quality accounting services.

• High English Proficiency

Both countries have English as their official language, so communication and collaboration are not a problem for firms in other English-speaking countries.

They’re also culturally linked to these firms. This makes it easier for all parties to understand project requirements, establish context for work, and meet client deliverables consistently and satisfactorily.

• Strong Accounting Education Pipeline

Trained in global financial reporting standards, Indian accounting professionals can ensure financial reporting in line with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

Plus, the Indian education system is known for its rigorous finance and accounting standards, which produce thousands of knowledgeable CPAs every year.

• 24/7 Service Delivery

India’s 9 AM is around 10 PM (CST), meaning when your US team is off work, your outsourced partners in India will be working.

This time difference ensures continuous service delivery for your clients, which gives a better chance of meeting tight deadlines.

• Tech-savvy Workforce

Business Process Outsourcing is a key part of both countries’ economies. That is why it has attracted huge investments from their governments through IT infrastructure and technology ecosystems.

This has exposed outsourced professionals in these countries to the most advanced programs for automating workflow, extracting data, and managing projects.

How to Choose the Right Partner in 2025

Here are a few things to note to make the most of outsourcing in 2025:

• Prioritize alignment with your business needs: The outsourcing provider’s expertise, certifications, and tech stack will amount to nothing if they don’t understand your business, industry, and needs.
• Focus on providers with a modern tech stack: Outsourcing thrives in a remote work environment when your team has the right tools to work with. A modern tech stack will free your outsourcing partner up to apply their expertise to your client’s financial situations. If they can’t deploy these tools, productivity will suffer.
• Request detailed proposals and SLAs: proposals and service level agreements clarify expectations and obligations, helping to prevent unmet needs that will negatively impact the outsourcing relationship.

Explore Finsmart’s cost-effective outsourcing solution today. Click here to book a session, so we can understand your needs, walk you through our tech stack, and discuss your engagement terms.

The post Top 10-Ranked Finance and Accounting Outsourcing Companies in 2025 appeared first on Finsmart Accounting - USA.

However, finance and outsourcing costs can be relative. Every firm should understand the dollar amount of outsourcing its specific services.

In this article, we attempt to narrow down the cost of outsourcing different finance and accounting services to help accounting firms (in the US, UK, EU, Australia, Singapore, etc.) negotiate better rates and plan their resources confidently.

Why Understanding Pricing Matters

• Rising Demand for Outsourced Finance

As more firms turn to outsourcing to reduce operational costs and manage workload, adequate knowledge of pricing structures and models will help them build more profitable outsourcing relationships.

• Cost is A Major Concern for Every Decision-maker

Accounting, bookkeeping, and CPA firms need the right pricing information to plan their budgets and allocate resources. This knowledge is key to realizing the value of outsourced finance and accounting services.

• Transparent Breakdown Helps to Avoid Hidden Surprises

When you and your potential outsourcing partner are on the same page concerning the price of their services, hidden and unpleasant cost surprises that disrupt budgets and stifle cash flow are prevented.

What Influences the Cost of Finance and Accounting Outsourcing?

• Scope of Services

All things being equal, outsourcing a function that can be completed in under an hour will cost much less than a task that requires four hours to complete.

That is why a basic bookkeeping service costs less than a financial audit. Similarly, running payroll for 20 employees will be less expensive than doing the same for 100 employees.

Many times, projects with larger scopes also require greater expertise to complete.

• Geography: Location of the Outsourcing Provider

Cost of living (and other economic factors) varies across geographical locations. This reflects on labor (and accounting) costs.

You can’t compare the cost of outsourcing a service to a company in India (where the minimum wage is $674) to a company in the US (where the minimum wage is $15,080), which is why PwC and other Big-4 firms outsource to India.

• Complexity of the Finance Function

If your clients have multiple products, intricate revenue systems, or international locations, more detailed and complex financial reporting is needed.

This requires more time and resources to complete, which will increase your finance and accounting outsourcing costs.

• Volume of Transactions

Transaction volume also drives up labor costs as your outsourcing partner may need to commit more accounting resources to get the job done.

Transactions in e-commerce and hospitality are usually more voluminous and involve multiple accounts. These transactions take a longer time to reconcile and are done more frequently.

Bookkeeping and financial reporting here will cost more.

Tools Used

The software your outsourced partners use for your clients’ work will either increase your operating costs (through subscription fees) or reduce costs indirectly (due to faster turnaround time).

• Experience Level of Staff

The more specialized (and certified) employees an outsourcing firm has on staff, the greater the outsourcing costs to deliver projects because paying CPA-level professionals will naturally be more expensive than entry-level bookkeepers.

That will also reflect in the quality of work you receive. This means quicker turnaround time, fewer revisions, and timely payments.

• Compliance and Reporting Requirements

When your clients operate in a heavily regulated industry like construction and non-profit, you will need more specialized knowledge and a strenuous financial reporting process to keep your clients compliant. You’ll pay more for the depth of work.

Common Pricing Models in Finance and Accounting Outsourcing

Sample Pricing by Service Type

Finsmart Accounting’s prices are structured as follows:

Pricing Comparison – India vs. Philippines vs. US

India-based outsourcing partners like Finsmart offer up to 60–70% cost savings compared to US providers.

Here’s a table showing the price difference between India, the Philippines, and the USA for the role of an accountant.

Why India Is the Preferred Destination for Finance and Accounting Outsourcing

India is one of the most affordable and advanced finance and accounting destinations due to:

• Availability of CPAs: The finance and accounting industry in India is highly competitive, thanks in part to government support and a rigorous education system.

Between 2020 and 2025, the country added over 9,000 new CPAs, who can walk into any firm, any business, and deliver excellent end-to-end accounting services.

• Domain Expertise: The Indian education system also emphasizes global financial reporting standards, like the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). This means your outsourced accountants do not need any training on accounting procedures.

Moreover, outsourcing companies in India prequalify their staff through a rigorous selection process, turning them into plug-and-play finance and accounting resources for US, UK, and Australian firms.

• Fintech Adoption: Investments from the Indian Government and the Big-4 accounting firms have helped to improve proficiency in financial technology, artificial intelligence, and analytics.

When you outsource to India, you wouldn’t need to train your partners on the tools you use for client work (QuickBooks, Xero, NetSuite, etc.).

“The Finsmart team can work with any software you have. QuickBooks Desktop, QuickBooks Online, Xero, Bill.com, you name it!

We don’t have to train anybody. They’re already trained.

—Mariko Hayashi-Hall, Founder and CEO of Chicago-based Brilliant Solutions Group

Cost vs. Value: What Are You Really Paying For?

• Expertise and Accuracy

The average finance and accounting outsourcing company has spent years helping accounting and CPA firms with diverse challenges in your industry.

This has given them the wealth of knowledge and experience to deliver the quality of service that your in-house team may not be capable of.

• Compliance and Reduced Risk

Reputable outsourcing companies not only understand your client’s unique compliance needs but are also equipped with the technology to keep your client’s data safe.

Your potential outsourcing partner should be GDPR and SOC II-certified. This will enable them to handle your client’s data in a way that complies with relevant privacy and data security laws.

• Scalability and Responsiveness

Growth can deplete your in-house resources and reduce your ability to meet client deliverables at scale, unless you hire more hands.

But hiring takes weeks, requires a huge financial commitment, and can end up a waste of resources if you hire the wrong person.

Outsourced companies are a steady source of qualified professionals available for monthly subscriptions.

This allows you to quickly add more staff (as you expand) to manage the increased workload and maintain the service quality.

• Access to Better Tools

Outsourced finance and accounting staff are trained with the latest accounting software solutions.

Using their resources allows you to tap into advanced technologies that can streamline and automate your repetitive work for maximum efficiency and profitability.

For example, the Finsmart accounting team is skilled in Financial Cents, Asana, Salesforce, NetSuite, Sage, Liscio, Dropbox, etc.

• Business Continuity

By outsourcing to countries like India, you can provide continuous client service in your firm. As a team in one location closes, the other resumes, ensuring round-the-clock operations.

How to Reduce Costs Without Compromising Quality

• Bundle Packages for Better Rates

Many outsourcing companies bundle their services into packages by combining related functions into a singular ball-park price. This makes it cheaper to get multiple accounting services than when you have to pay separately.

Using bundled services also reduces data transfer, which might lead to errors and costly corrections.

• Choose the Right Mix of Services

Choosing the right mix of services helps you receive the exact services you need and not more.

When choosing a bundled package, take your time to assess the importance of every service, so that you don’t pay for the components you don’t need.

• Offshore to Countries like India

Thanks to differences in labor costs, outsourcing to countries with lower labor costs (like India) reduces your outsourcing costs by as much as 60-70% (as you can see in the table above).

• Opt for Experienced Partners with Proven Processes

A reputable finance and accounting outsourcing company will bring years of proven accounting processes to the table.

Since you won’t have to micromanage them, you can focus on your strategic work, knowing they’ll turn in their assigned work on time.

• Automate Routine Tasks

Not only will automation reduce the time your outsourcing partner spends on projects, but it will also reduce human errors and costly corrections.

Artificial Intelligence, robotic process automation (RPA), and other innovations present an opportunity to save time and reduce operational costs for you and your outsourcing partner.

Final Thoughts: Get Custom Pricing for Your Business

Getting the best outsourcing price (and value for your money) requires a clear understanding of your workflow needs.

With this knowledge, you can confidently determine your budget for outsourcing a service, so you don’t pay a dime more than necessary.

If you need help understanding your outsourcing needs and finance and outsourcing costs, our support team will gladly assist you in figuring it out (and the best price based on market forces). You can book a free consultation today.

“Explore affordable, high-quality finance and accounting support with Finsmart Accounting.”

The post How Much Does It Cost to Hire a Finance and Accounting Outsourcing Company? appeared first on Finsmart Accounting - USA.

What would your outsourcing strategy be? Before you answer, you have to understand what can (and can’t) be outsourced in the first place.

Here are the most common finance and accounting services firms outsource and how they do it.

Overview—Why Outsource Finance and Accounting Services?

The supply of finance and accounting talent has declined over the last few years. You must find qualified professionals to balance your firm’s workload to meet evolving client needs and deliverables. Outsourcing your finance and accounting services is the most reliable way to do that.

Here’s why:

• It Reduces Labor Cost

Being a trusted adviser to business organizations, you know what it means to be profitable.

Outsourcing your service allows you to use qualified professionals from other countries, most of whom have lower labor costs.

• It Connects You with Experts

Using third-party service providers allows small and big firms to tap into external financial and accounting experts without going through the long and stressful hiring process or committing to a long-term relationship.

Core Accounting Services Typically Outsourced

• Bookkeeping

Outsourced bookkeeping services project transfers transaction tracking, bank reconciliation, and ledger maintenance to an external bookkeeper, ensuring accurate record-keeping for your clients without using your in-house resources.

Once the bookkeeper is onboarded and set up in your systems, transfer all relevant data to them in your file-sharing system. If you use practice management software, you can see all bookkeeping projects assigned and all the files and information needed to complete them.

This also enables you to monitor their work and collaborate with them where necessary.

• Accounts Payable (AP)

Outsourced AP professionals will handle invoice processing, vendor payments, and aging analysis to ensure your client’s vendors get paid on time.

Using their technology skills, these professionals will do 2 or 3-way invoice matching to ensure accuracy and fraud prevention.

Here’s what you’ll need to do in accounts payable outsourcing:

• Transfer your client’s invoices to your outsourcing partner.
• They use software tools to:

1. Extract and validate data.
2. Route invoices through customized approval workflows.
3. Once invoices are approved, the vendors will be paid using the applicable payment method (ACH, card, etc.).
4. The AP dashboard centralizes this payment information, keeping everyone involved up to date on vendor payments.

• Accounts Receivable (AR)

When you outsource your accounts receivable projects, your outsourcing partner takes over the management of your client’s receivables from invoicing to payment.

Combining technology and human touch, these professionals will use their expertise in customer relationships to manage collections (using creative follow-up strategies) to improve Day Sales Outstanding (DSO).

Here’s how it works:

• Your outsourced AR partner receives your client’s receivable data.
• They create invoices using QuickBooks.
• Automate receivable collections with a receivable collection management software solution.
• Implement personalized follow-ups that align with client communication preferences.
• Track customer payments.
• Match incoming payments with invoices.
• Reporting

• Tax Preparation & Filing

You can also outsource your corporate, sales, and personal tax projects to external experts knowledgeable about your client’s tax laws and all other relevant regulations.

By outsourcing this aspect of your tax work, you can channel your in-house resources to the more advanced work, like tax planning.

Here’s how it works:

• Data Transfer: send the client data (or provide access to it) to the external tax preparer.
• Document Processing: The financial data, like income and expenses, is entered into the tax software. Tax software like DrakeTax is used here to save time and avoid errors.
• Return Preparation: The preparer enters the financial information into the right forms. Deductions are applied and liabilities are calculated according to relevant regulations, like the IRS.
• Review and Approval: Your in-house team can review the return here for accuracy and compliance.
• Delivery and Filing: The client receives the returns for approval before it is filed.

• CPA Support & Controller Services

Outsourced CPA support or controller services can also be outsourced. In this case, the outsourcing service provider will adjust your client’s financial strategy to help them achieve their business goals and manage their financial operations to ensure compliant financial reporting.

Here are some of the tasks involved in CPA outsourcing services:

• Reconciliations: using relevant software to reconcile accounts, such as a bank, credit card, ledger, etc.
• Financial Forecasting: Using technology to forecast budgets and cash flow to help your clients make more accurate decisions.
• Compliance Management: Manage your clients’ financial processes to ensure compliance with relevant standards.
• Real-Time Reporting: Using business intelligence tools to create trial balance, adjusting entries, etc.

• Audit Support Services

Outsourced audit services allow you to use third-party financial auditors for your audit projects. These professionals are skilled in asking the right questions, verifying the right data, and testing controls to help clients understand their risks and make timely decisions to address them.

By delegating these projects to external professionals, you can focus on monitoring the process while you ensure effective client communication.

This service is in three main stages:

• Pre-Audit Preparation: This is where you help your outsourcing partner collect the financial data needed to identify risks and prepare schedules.
• Documentation: Your outsourcing partner compiles financial documents to account for the procedures, evidence, and conclusions collected during an audit.
• Year-End Reconciliation: This is where they use tools like NetSuite to reconcile accounts and resolve discrepancies.

• Financial Reporting & Analysis

Outsourced finance and accounting professionals also produce financial statements that help your clients understand and disclose the health of their business.

This involves:

• Management Reports: creating customized reports that show financial KPIs and using variance analysis for risk management and strategic planning.
• Cash Flow Forecasting: projecting the inflow and outflow of cash from your client’s business.
• Profit and Loss: Gathering and comparing revenue and expense data to measure your client’s profitability.
• Balance Sheet: reconciling assets, liabilities, and equity to show what businesses are worth.

• Virtual CFO Services

This service lets you capitalize on the wealth of experience of an external chief financial officer (CFO) to enjoy financial leadership through forecasting and other advanced financial processes.

This provides your clients with insights that guide their financial decisions and business goals.

• Strategic Advice: An outsourced CFO will create a strategic plan that helps you meet your business goals.
• Budgeting: using their expertise in financial management tools like NetSuite, they will help you budget your resources from your cash flow projections.
• KPI Tracking: monitoring important metrics to provide financial insights for business growth.

How These Services Work When Outsourced

Engagement Model (project-based, retainer, FTE)

Using outsourced financial and accounting services starts with defining the way you want to engage with your outsourcing partner. This could be:

• Full-Time Engagement: This gives you a dedicated outsourced professional who works exclusively for your firm.
• Monthly Retainer: This gives you a set number of work hours at a fixed monthly fee.
• Project-Based: This gives you a professional who comes in to perform a specific task.

How to understand which model will work best for your firm:

Examine Your Workload to identify which services you need external help with and how frequently (weekly, monthly, or seasonal) you need the help.

Projects like bookkeeping require ongoing work, so a retainer engagement is fitting.

For a one-time project like financial audits, a project-based engagement works well. If you need as many as 30 or more hours weekly for services like those of a CFO, you should consider a full-time engagement.

Tools Typically Used

You don’t need additional software or tools when outsourcing your services.

Your outsourcing partner will use the tools you already use for client work, which include:

• QuickBooks Online, Xero, Etc.: tracking income and expenses and organizing financial information.
• Financial Cents, Karbon, Etc.: practice management software to track projects, client information, and team capacity.
• Bill.com: managing accounts payable (AP) with invoice matching and payment schedule.
• SAP: financial management (AP, AR, and tax) for your enterprise clients.
• Drake Tax: tax preparation with portals for secure document exchange.
• NetSuite: an integrated system for managing financial processes for your clients.

Sample Workflow from Intake to Reporting

I assume you have done your partner selection and successfully onboarded them. If not, click here to see how to understand how the process of hiring outsourced accounting professionals works.

Here’s how to start using your outsourcing partner to meet your client deliverables:

• Intake: The first step is to assign projects to the professional by sharing work information and documents with them. This is where they get access to every relevant software solution.
• Processing: The outsourcing partner starts executing the tasks needed to complete the project.
• Service Delivery: When done, the review (most likely your in-house team) reviews the work and flags errors for correction (if any).
• Reporting: The outsourcing partner shares a weekly or monthly work report, including relevant metrics and documents.

Who Typically Uses These Services?

• Bookkeeping, Tax, and CPA Firms Needing to Scale

Firms want to scale their operations for different reasons. One, it enables them to tap into external resources to provide services that their in-house teams may not be so good at.

It also allows them to focus on the services they are most passionate about without sacrificing the opportunity to generate revenue from other services.

• MNCs with Global Accounting Operations

Operating in different accounting jurisdictions, it can be hard for multinational corporations to manage their financial and accounting needs from their headquarters.

Foreign experts trained in relevant reporting standards will help them comply with all financial requirements across the board while also keeping labor costs low.

Final Thoughts: How to Choose the Right Services for Your Needs

Outsourcing is resourceful, but knowing what to outsource is more beneficial.

Here are key questions to ask yourself to outsource as intelligently as the Big 4:

• Is it cheaper to outsource?
• Is direct control over the task crucial?
• Can the outsourced provider guarantee quality?
• Does the task require specialized technology that you don’t have in-house?

Once you’re sure of what to outsource, don’t assume your processes and technology are effective enough for an outsourcing relationship.

Use our Outsourcing Readiness Checklist to adjust your firm and get the most out of your outsourcing partner. Click here to get the checklist.

For more information on outsourced finance and accounting services, book a free consultation with our outsourcing expert.

The post What Services Do Finance and Accounting Outsourcing Companies Offer? appeared first on Finsmart Accounting - USA.

What is Outsourcing?

Outsourcing is not a new concept. It goes back to the Industrial Revolution when large corporations needed to build stability and efficiency and reduce costs by leveraging specialized labor. Globalization, digitalization, and other advancements have made it easier for businesses to outsource, even in a critical field like accounting. Accounting deals with a lot of complicated concepts and critical data. Analyzing outsourcing in this field becomes imperative. 

The Impact of Outsourcing on the Economy:

When we talk about outsourcing and its implications on a country’s employment, it is important to analyze its impact on the economy. Here are the top ways outsourcing has an impact on the economy:

• On cost efficiency and competitiveness:
  
  The financial impact of outsourcing on an economy is directly proportional to the amount of cost reduction that a business has been able to withstand. Building cost efficiency is one of the primary factors that helps in ensuring cost efficiency. By outsourcing core and non-core activities, accounting firms can reduce operational costs, focus on their core competencies, and increase profit. The cost-saving strategy can enable lowering the prices for the customers and increase competitiveness in the global market. This, not only gives the business, but to the nation, an edge in the global market.  
• On job creation and economic growth:
  
  While the general verdict on outsourcing is that it leads to job loss, the reality is somewhat different. Outsourcing can help create jobs and boost the economic growth of any country. This is applicable to both the home and the host countries. In home countries, accounting firms can reassign different jobs and make way for more strategic roles, fostering innovation and creating higher-value jobs. Similarly, in the host country, outsourcing can help in economic development by providing employment opportunities and enhancing living standards. In a crux, it’s not just one nation or a set of people who benefit from this model. In fact, the implications of outsourcing reach far and wide. 

Debunking the myths around outsourcing:

Myth 1:

There is massive job loss in the US.

The Reality:

The fear of job loss can be massive, especially in the aftermath of a global pandemic and ongoing inflation. However, the impact that outsourcing has on job scenarios is often overstated. Instead of creating job loss, outsourcing makes way for more skilled laborers to improve their standards and quality while working in strategic roles. This helps establish a balance between people working on jobs as per their level. It is all about what is needed and what is actually relevant for your roles. 

Myth 2:

Outsourcing benefits large corporations.

The Reality:

A popular misconception goes that only large corporations benefit from outsourcing. Surprisingly, small and medium accounting firms reap far greater benefits from outsourcing. Besides, helping reduce costs, it also helps them scale up at a faster rate. It allows them to leverage outsourcing to improve efficiency and compete in the global market. Outsourcing is all about efficiency, cost decline, and overall consumer satisfaction. 

Myth 3:

Outsourcing provides poor-quality output.

The Reality:

The concerns around the quality of the output is often considered one of the topmost drawbacks of outsourcing. However, modern outsourcing firms have a team of experts who specialize in their fields. You would find people who are dedicated to performing tasks like bookkeeping, taxation, auditing, etc. There is hardly a situation where one single person is made to perform multiple tasks. This approach helps ensure that the employees are dedicated to adhering to the highest quality standards. They also use advanced communication technology that makes it easier for companies to manage and monitor outsourced services and ensure that the quality doesn’t go for a toss. 

Myth 4:

Outsourcing exploits cheap labor

The Reality:

The impact of outsourcing on any economy isn’t as straightforward as it might seem. The notion that outsourcing exploits cheap labor in developing countries doesn’t take a deep dive into the nitty-gritty. While it is true that the labor costs in countries like India and the Philippines are cheaper when compared with the US, outsourcing creates jobs that otherwise would not exist. These days, outsourcing agreements include provisions for fair wages and working conditions. This is also something ensured by the outsourcing partners at their end. 

Myth 5:

Outsourced jobs are lost jobs. 

The Reality:

When you outsource any task to another country, accounting or otherwise, it becomes your means to get better in the final output with lost cost inputs. This translates to the fact that the clients in the US can avail services or products at a cheaper rate than they otherwise would. This helps small and medium businesses grow to a great extent, helping them raise their standards of living. 

Impact of outsourcing on local talent – Summing up

Outsourcing has a positive impact on local economies. By outsourcing some key functions like accounting and bookkeeping, businesses can invest more in research and development, enhancing the skills of the locals, leading to innovation and the creation of high-skilled jobs. The increase in competition can lead to a higher share of the market and expansion. This helps boost economies.

One of the important factors in mitigating the potential negative impacts is spreading awareness and educating. By investing in education and training, local workforces can adapt to the changing trends in the job markets. Governments and businesses also play a key role in such initiatives. The future of businesses and work is being reshaped. This shift is a new opportunity for local economies to develop new industries and create jobs, less susceptible to being outsourced.

Want to outsource your accounting practice? Write to us at connect@finsmartaccounting.com 

The post Local Resources Lose Staff To Outsourcing – How True Is The Claim? appeared first on Finsmart Accounting - USA.

Problems caused by cultural differences in accounting outsourcing:

The apprehensions of the accounting firms around outsourcing could be based on their personal experiences or from something they have heard. To know the right steps to combat the problems, it is important to dive deep into the challenges.

• Miscommunication and misunderstanding:
  
  The major problem occurs when there is a tendency to assume. It is only human to do so. The lack of clear communication due to lack of time or the assumption that the outsourcing partner simply wouldn’t understand leads to this problem. Between what has been spoken and what has been agreed upon – sometimes there is a gap. This could also happen because the teams aren’t working in the same time zone. Sometimes, teams tend to leave things till the last moment which only ends up making things worse. 

• Language proficiency:
  
  The language proficiency of the outsourcing partner can have a great impact on how clear things appear. If the outsourcing partner isn’t fluent in the language of the clients, expressing their thoughts, ideas, and strategies becomes very challenging. Misinterpretation, due to a lack of proficiency in the language, also leads to inaccuracies in work. The partner might also struggle with problems understanding the questions and feedback.

• The “mum” effect:
  
  In some countries, the concept of hierarchy within the organization is too strong. If the outsourcing partner is based in such a country, they could withhold bad news, fearing the undesirable consequences. In these countries, the concept of maintaining harmony at the workplace, as much as in the personal life is strong. The “mum” effect has a significant impact on a project. If the mistakes and errors do not get resolved on time, they can go unreported, and their impact on the client is severe. When you try to find a resolution at this point, it gets expensive too. 

• Loss of productivity:
  
  Miscommunication can often lead to a lot of back and forth. It leads to errors and then fixing them requires additional time. All of it can hamper the productivity and efficiency of the tasks and the businesses as a whole. Errors due to miscommunication also lead to a loss of valuable time. 

• Cause a strain in the relationship:
  
  With different cultures come different styles of communication. This can cause a significant strain on the relationship with the outsourcing partner and with the clients of the accounting firms. The differences in culture lead to differences in opinions which enhances the way each of them perceives their businesses. 

Tips to manage cultural differences effectively:

Problems arising due to cultural differences continue to be a luring apprehension for accounting firms. But it does not mean that firms cannot manage it the right way. 

• Introduce “cultural fit”:
  
  Right from the beginning of the partnership with the outsourcing partner, introduce the cultural fit. Tell your accounting outsourcing partners about your goals, objectives, and aspirations. While many might think that it is not as important as the budget fit or the expertise of the team, it is all about choosing and building a team that understands you. Understanding the outsourcing partner’s culture also helps build a long-lasting association. It is important to treat them like your own team, rather than an external resource. It helps bring balance and enables the accounting firm paves the path to success. 

• Set clear expectations:
  
  Before you start a project, make sure that you have explained your expectations for the project and the communication in detail with your partnering team. If you need to get something done beyond your scope, it is better to talk to the team in advance to understand their capabilities and bandwidth. Explain your goals and objectives behind every task. You can never overcommunicate. So make sure to have weekly status meetings, and monthly review calls and start a platform where queries can be raised daily. This will help everyone stay on the same page. 

• Keep an open mind:
  
  When outsourcing, always remember that another person’s experience can’t be yours. You will need to acknowledge that everyone has their own thoughts and opinions. You might not agree with everything. But it is important to hear other points of view. You will have a lot of apprehensions about accounting outsourcing unless you have tried it. As you work with global teams, it becomes imperative to embrace differences and see beyond them to make them work. Your outsourcing team’s different perspectives will help you solve a lot of problems that otherwise would have been hard to spot.

• Use tech to your advantage:
  
  The world is coming closer with digitalization. Irrespective of the field, firms seek teams with different perspectives for their firm, which is only possible when you hire employees from different backgrounds. Outsourcing makes it easier. There are various communication tools like Teams, Zoom, etc, and project and program management tools like Monday.com, Asana, etc, that are readily available to help you stay connected.

• Language barriers can be addressed:

Many accounting firm leaders are apprehensive about how well can the outsourcing teams speak English when they outsource to a team in India or the Philippines. Most of the people who will become your team of accountants are fluent in English. They have experience working with international clients who are mostly English-speaking. Besides their expertise, they also know about handling clients across the world. All they need is a little support.

Managing client apprehension in language and culture in outsourcing: Conclusion

In case you are outsourcing for the first time, culture shock can be real. But it does not have to be that way. Cultural differences will always have a significant impact. It is important to note that outsourcing acts as an advantage for accounting firms. While the apprehensions have some truth to them, learning all about handling them the right way will allow us to avoid misunderstandings and conflicts.

Want to know more about how you can benefit by outsourcing accounting? Write to us at connect@finsmartaccounting.com.

The post Client Apprehension About Language And Culture In Outsourcing appeared first on Finsmart Accounting - USA.

With the introduction and advancement of technology, clients come with their own set of demands and expectations pertaining to software. When choosing an offshore accounting provider, it is important for CPA firms to choose one that can deliver customized solutions tailored to their client’s unique needs. 

While accounting is a huge market in itself, according to a market research, the accounting software market is a giant, estimated at $13.71 billion in 2022. It is expected to achieve $28.61 billion by 2030. The CAGR has been evaluated to become 11.8% from 2023 to 2030.

While many clients of Small CPA firm might be of the opinion that adding a software to the existing process of accounting is merely a “process”, they could not be further from the truth.

Small CPA firms either would use accounting software that they are comfortable with and integrate their software with their client’s business or would have to learn accounting software for their clients.

This poses a significant challenge for small CPA firms, and the best solution is to collaborate with a partner who can oversee the technological aspects of accounting, allowing them to concentrate on the functional aspects and value creation.

While choosing a partner, Small CPA firm should make sure to choose someone who can adapt to their clients’ needs and make accounting easy. Not every partner is inclined to adapt to the changing needs. A flexible partner understands you better and does not leave you in a fix.

How to choose an offshoring partner who can adapt to your accounting software needs?

In this digital age, the world has come closer and there is no dearth of options when it comes to choosing an offshore accounting partner. But as an owner of a small CPA firm, if you want someone who understands your software needs, is willing to go the extra mile to understand, adapt, and learn the software as per your uniqueness, and help provide custom solutions that best suit you, here is the right way to go about it.

1. Define your requirements: Software needs do not merely mean the current state of business, they mean the long-term objectives. Your offshore partner must have a clear understanding of what they are. You know your clients best and it is important to convey the same to your partner. Features and functionality that you need, integration that will make tasks easier – don’t forget to communicate the goals that the software must address. This will help your offshore bookkeeping partner tailor solutions as per your needs. Scalability must be an important part of your discussion as the software should be able to accommodate growth.
   
2. Research and pick: To identify potential offshore providers, conduct thorough research. Look for partner providers with a track record of working with businesses in your industry and niche. The find is not merely about a partner who can customize your accounting software needs, in fact, they have to be someone who understands the intricacies or are willing to make an effort to understand them. Getting a client reference and reading case studies can be the right way to understand your potential offshore partner better.
   
3. Assess technical expertise: Technical proficiency is key when it comes to software customization. Your offshore partner must have a team of experienced and skilled developers with expertise in the technologies and platforms that are relevant. Knowledge of software like Quickbooks, Xero, bill.com, Netsuites, Zohobooks is an added advantage. Don’t forget to gain knowledge on whether they can provide industry-specific solutions that meet the regulatory and compliance requirements as per your sector. Confirming their understanding of tax laws, accounting principles and other industry-specific knowledge is an added advantage. A knowledgeable and experienced partnership can go a long way in providing an edge to your business.

4. Communication & time zone: Communication is key for any successful partnership. This is especially true when you are connected to a play that is geographically miles away. When choosing an outsourced accounting services partner, you must choose one who is proficient in the English language and is willing to provide regular updates on the project’s progress. Also make sure you have a face that you talk to – meaning, a dedicated point of contact or account manager. Consider time zone differences; this will enable an overlap in the working hours for real-time collaboration and resolution of issues.
   
5. Cost transparency: Integrity and transparency should be at the core of your partner’s values. Besides choosing a partner who can abide by your software requirements, it is important that they share their detailed cost breakdowns and help you understand all about their billing cycle. You should have a clear understanding of what you are paying for and any information on hidden charges. This transparency ensures there are no unwanted surprises and enables you to manage your budget effectively. Finsmart Accounting – a reliable outsourcing partner – shares all the details of their monthly and hourly seat upfront.

6. Innovation & improvement: The accounting industry is constantly evolving. The offshore partner should stay updated with the latest trends and technology, besides making customized use of the accounting software. They should also make efforts to suggest improvements and innovations that are in sync with the standards and regulations. With this forward-thinking approach, you can help your firm remain competitive and compliant.

Choose the Right Accounting Software with Finsmart Accounting

At Finsmart Accounting, our team of experts is trained and certified in accounting software like Quickbooks Online and Desktop, Xero, Dext, bill.com, Netsuites, and more. To get customizations, it is important to understand your client’s needs in detail and tailor solutions that can be used to their advantage. We believe in using technology to our advantage and leveraging it to help clients save money and time, scale better and faster, and stay ahead of the competition. 

Unlike most other offshore service providers, Finsmart Accounting uses a flexi-tech engagement model. In this model, we adapt to the needs of our clients and not the other way around. That’s why most of our  clients are satisfied with our vendor onboarding process. 

Have more questions about offshoring or adaptability to accounting software? Reach out to your team at connect@finsmartaccounting.com.   

We recommend checking out these recent blogs and service pages as well:

Benefits of offshoring accounting and financing

Artificial intelligence in accounting 

Tax software for small CPA firms

Risk management in accounting firms

Accounts payable and receivable services 

India entry services MNCs

The post Finding Offshore Providers That Adapt to Small CPA Firm’s Accounting Software Needs appeared first on Finsmart Accounting - USA.

Before collaborating with FInsmart Accounting, Rebecca Santiago, the co-founder of an accounting firm in South Florida, was in the toughest situation due to accountant shortages and was unable to find anybody to support clients with services such as annual business audits and preparing tax returns.

“I think the biggest challenge that we faced recently is much the same as a lot of businesses have been which is finding talent that is willing to show up to work, show up after you hire them or are willing to accept a compensation that is realistic for their skill set and what we’re trying to offer for our clients” she said.

She is not alone, according to AICPA’s 2022 PCPS CPA firm top issues survey, “Finding qualified staff (at all levels)” remains the top 5 concerts for all CPA firms irrespective of size of the firm.

In this article Finsmart Accounting – trusted by hundreds of CPAs for finance and accounting outsourcing – will explore the capacity challenge faced by US CPA and accounting firms and provide actionable strategies to overcome it successfully.

Understanding the Capacity Challenge

The capacity challenge arises when accounting firms find themselves struggling to manage their existing clients effectively and efficiently while acquiring new clients. Factors contributing to this challenge include:

1. Clean up Jobs : When a firm signs up a new client most times that have to do a Clean Up Job of books of accounts for multiple years. This takes away lot of bandwidth of the existing bookkeeping staff affecting the existing bookkeeping client engagements

2. Seasonal Peaks: Tax seasons, financial reporting deadlines, and regulatory compliance periods lead to a surge in workload, demanding additional resources and manpower. Most firms crumble in pressure which affects the performance of existing staff and at times you have an attrition and staff leaving you when you need them the most.  

3. Skills Gap: The rapidly evolving financial and accounting technology landscape requires specialized skills and technology expertise, and firms might face challenges in finding qualified professionals to handle this changes and new age technologies.

4. Client Diversity: Catering to clients from various industries and sectors may require different skill sets, resulting in a need for diverse expertise.

5. Client Expectations: The rising expectations of clients for personalized, real-time services can strain a firm’s capacity and resources.

6. Technology Adoption: The integration of advanced technologies can sometimes lead to a steep learning curve for the workforce, affecting productivity temporarily.

Read on to discover top strategies for US CPA and accounting firms to overcome capacity challenges. 

Strategies to Overcome Capacity Challenges

1. Embrace Technology and Automation

Implementing the right technology and automation tools can significantly increase the efficiency of accounting processes and reduce manual efforts. Robotic Process Automation (RPA) can handle repetitive tasks, data entry, and reconciliation, freeing up accountants to focus on higher-value services. Cloud-based accounting platforms facilitate real-time collaboration with clients, streamlining data exchange and improving communication.

2. Invest in Continuous Training and Skill Development

To address the skills gap, accounting firms should invest in continuous training and skill development for their employees. Providing opportunities for certifications, workshops, and webinars can enhance the team’s knowledge and capabilities, enabling them to tackle complex tasks with confidence.

3. Prioritize Client Segmentation

Client segmentation involves categorizing clients based on their needs, complexity, and potential for growth. By understanding which clients require specialized services and which can be served using standardized processes, firms can allocate their resources more effectively and ensure optimal client satisfaction.

4. Outsource Non-Core Functions

Outsourcing non-core functions like bookkeeping, payroll processing, and tax preparation can alleviate the burden on the in-house team, allowing them to concentrate on strategic and advisory services. Partnering with reputable outsourcing providers can ensure quality work and timely deliverables.

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:

5. Collaboration and Teamwork

Promote a culture of collaboration and teamwork within the firm. Encourage employees to share knowledge, best practices, and insights, fostering an environment of continuous learning and improvement. Cross-functional collaboration can also help distribute workloads more evenly.

6. Optimize Project Management

Effective project management is crucial for handling multiple clients and engagements simultaneously. Implementing project management tools and methodologies can streamline workflows, improve task delegation, and ensure deadlines are met without compromising quality.

7. Scalable Business Model

Develop a scalable business model that can accommodate fluctuations in demand and client volume. Flexibility in resource allocation and service offerings allows firms to adapt quickly to changing market conditions.

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 so that they don’t have to scramble to hire accountants.

“Before we started with them, my partner was already telling me we can’t bring on any more new clients because we didn’t have capacity and I am not concerned about that anymore at all.” said Rebecca Santiago.

Share your thoughts

Would you like to know more about the DPPT framework or have you or your company worked with offshore accountants during the accounting talent crunch? What was the experience like? Join the conversation below or check out our recent blogs on business growth and offshore hiring:

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In the emerging landscape of the 2023 US economy, CPA and accounting firms are seeking innovative ways to build capacity and stay competitive. One emerging strategy that promises to address these demands effectively is the establishment of a dedicated offshore team. These dedicated teams work as an extension of the US-based workforce, offering a range of services across various industries, including IT, finance, accounting, customer support, and more.

In this context, Finsmart – trusted globally for outsourced bookkeeping services – decided to explore how leading firms are leveraging offshore resources to enhance their operations and thrive in the evolving US economy.

Build Capacity with a Dedicated Offshore Team

Here are the many reasons behind growing focus on finance and accounting outsourcing:

1. Capitalizing on Cost Efficiency: 
2. Scaling Up Responsiveness: 
3. Leveraging a Global Talent Pool: 
4. Empowering Focus on Core Competencies: 

Read the complete version of this blog on The Woodard Report to discover more insights on the listed points. 

Connect for Offshoring Support

By leveraging the wealth of talent and resources available globally, businesses can embark on a transformative journey that not only sustains growth but also fuels innovation and strengthens their position in the evolving economic landscape. 

By partnering with offshoring brands like Finsmart Accounting, CPA firms can access a team of professionals that is knowledgeable about the latest technologies, up to date with ever-evolving accounting norms, and domain experts in US accounting.   

Do you still have queries to ask? Leave them in the comments or email them at connect@finsmartaccounting.com to get a quick reply from the experts. 

 Also, have a look at our recent blog 

 financial reporting benefits Indian startups 

Strategies for streamlined accounts receivable in India

Bookkeeping VS Accounting. What’s the difference 

Want to look at a video review before starting a discussion? Here it is!

We are globally trusted for these services:

Here’s why Finsmart is one of the best accounting outsourcing companies in India

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The post Build Capacity in the 2023 US Economy with a Dedicated Offshore Team appeared first on Finsmart Accounting - USA.

Offshoring has emerged as a powerful strategy for US CPA firms to enhance client service and satisfaction. By leveraging the expertise and resources of offshore professionals, CPA firms can streamline processes, access specialized skills, increase operational efficiency, and ultimately provide higher levels of service to their clients. 

In this article, Finsmart Accounting – trusted by hundreds of CPAs for finance and accounting outsourcing – will explore how offshoring is helping US CPA firms improve their client service and satisfaction.

Let’s begin with our article!

How Offshoring Improves Client Satisfaction for CPAs

Below are the numerous ways in which CPAs in the USA are able to improve client service and satisfaction by opting for offshoring:

1. Increased Capacity and Flexibility

One of the primary benefits of offshoring for US CPA firms is the ability to increase their capacity and flexibility in serving clients. Offshoring enables firms to tap into a skilled workforce in offshore locations, allowing them to handle larger workloads and meet tight deadlines more effectively. By expanding their capacity, CPA firms can take on new clients, tackle complex projects, and provide faster turnaround times, all of which contribute to improved client service and satisfaction. 

Additionally, offshoring provides flexibility, as firms can scale their offshore teams based on fluctuating work demands, ensuring that clients’ needs are always met promptly.

2. Access to Specialized Skills and Expertise

Offshoring allows US CPA firms to access specialized skills and expertise that may not be readily available locally. By partnering with offshore professionals who have domain-specific knowledge and experience, CPA firms can enhance the depth and breadth of their service offerings. Whether it’s tax planning, international accounting standards, or industry-specific regulations, offshoring enables firms to leverage the expertise of professionals who are well-versed in these areas. 

This access to specialized skills not only enhances the quality of service provided but also instills confidence in clients, knowing that their accounting needs are being handled by professionals with the right expertise. This is a major satisfaction booster for CPAs!

3. Cost Efficiency and Competitive Pricing

Cost efficiency is a significant advantage of offshoring for US CPA firms, and it directly translates into competitive pricing for clients. Offshoring allows firms to access a talent pool in offshore locations where labor costs may be lower compared to the United States. This cost advantage enables CPA firms to offer competitive pricing structures to their clients while maintaining profitability. 

By optimizing their cost structure through offshoring, CPA firms can pass on the cost savings to clients, making their services more attractive and improving overall client satisfaction.

4. Enhanced Focus on Core Services

Offshoring non-core tasks and routine administrative work enables US CPA firms to refocus their resources on core services and strategic client initiatives. By delegating time-consuming tasks such as bookkeeping, data entry, or payroll processing to offshore teams, CPA firms can dedicate more time and attention to value-added services. This shift allows firms to deepen client relationships, provide strategic advice, and offer personalized solutions tailored to their clients’ specific needs. 

By focusing on core services, CPA firms can deliver a higher level of service, cater to clients’ unique requirements, and ultimately improve client satisfaction.

Need more reasons why outsourced bookkeeping companies for CPA firms have a huge demand? Read on!

5. Round-the-Clock Service and Improved Responsiveness

Offshoring opens the possibility of providing round-the-clock service to clients, regardless of their time zones. By leveraging offshore teams located in different regions, US CPA firms can extend their service hours and improve responsiveness. This 24/7 availability ensures that clients receive timely support and assistance, even during non-traditional working hours. 

Offshoring facilitates efficient client communication, with offshore teams working collaboratively with onshore teams to ensure seamless service delivery. The improved responsiveness and accessibility contribute to a positive client experience and increased satisfaction.

6. Improved Technology and Innovation

Offshoring often involves leveraging advanced technology and infrastructure, which can lead to improved service capabilities and innovation. Offshore service providers invest in cutting-edge accounting software, data analytics tools, and cybersecurity measures to deliver efficient and secure services. By partnering with offshore teams, US CPA firms gain access to these technological advancements without incurring substantial costs. 

This technology-driven approach enables firms to automate processes, analyze financial data more effectively, and generate actionable insights for their clients. The ability to offer innovative solutions and leverage technology advancements enhances client service and satisfaction.

7. Cultural Diversity and Language Skills

Offshoring provides US CPA firms with access to a diverse talent pool, bringing in professionals with different cultural backgrounds and language skills. This diversity can be a valuable asset when serving clients from various industries or international markets. Offshore professionals who are multilingual or have cross-cultural experience can effectively communicate with clients, understand their unique requirements, and navigate any cultural nuances that may arise. 

The ability to connect with clients on a cultural level fosters stronger relationships and enhances overall client satisfaction.

We hope that the above article helped you learn why accounting offshoring makes sense for US CPAs interested in improving client service and satisfaction.

Share your thoughts

Would you like to know more about risk-free accounting offshoring to India? Start the conversation below or check out our recent blogs on offshore accounting for bonus insights on offshore accounting.

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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. 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:

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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 - USA.