Small CPA firms often are reluctant to adopt outsourced accounting services. Most of them hold on to some myths that may limit growth and efficiency. Most myths tarnish a beautiful picture of accounting service outsourcing for small businesses: it saves time and money and enhances quality service. This blog attempts to debunk five common myths that deny small CPA firms the benefit of accounts outsourcing services. Therefore, clarifying myths would help firms realize their full potential and major in what they are good at. Let's get into uncovering the truth.
Myth 1: Will Outsourcing Lead to Losing Control Over Financial Data?
Perception of Losing Control Many people believe that outsourcing accounting services will cause them to lose control over the information of their financial data. They have a perception that the health of their firm would be managed by some outsider.
Outsourced accounting services provide firms with in-depth reporting and access to real-time data. The latest technology ensures that firms remain in control of their financial processes. Firms can lay down certain rules or guidelines in which the outsourced accounting service has to work.
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Outsourcing brings transparency to the knowledge of their financial status at all times for CPA firms.
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Outsourcing, in the real sense, can also bring better control and insight as professionals are accountable for the complex processes.
Do Outsourced Services Have Less Reliability Compared To In-House Teams?
Reliability Concerns Some believe that such outsourced accounting services are less reliable compared to in-house teams. The misbelief is that the commitment or skill levels to manage their finances effectively are not available with such external providers.
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Finance and accounting outsourcing services because they are managed by people who have an interest in quality.
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Most of these services are channeled through the proper funnel of quality checks and professional standards.
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Outsourced providers are accountable and committed to meeting agreed service levels.
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On the contrary, the turnaround of employees or internal disruptions do not impact any of the outsourced services.
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Reliability levels for outsourcing can often exceed internal teams with the proper partner.
Myth 3: Outsourcing for the Small CPA Firm" – Isn't This Going to Be Expensive"
Cost Concerns: Small CPA firms have their concerns about the cost associated with accounting services through outsourcing. They tend to think that the cost would go higher due to hidden fees or the pressure it would exert on budgets with unpredictable costs.
This leads to savings in costs because most often accounting services for small businesses would mean outsourcing instead of hiring full‐time staff.
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Costs such as training, benefits, and office space are eliminated from an accounting firm.
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Accountants can budget efficiently through transparent pricing models.
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The savings made from outsourcing accounting services can help a firm reinvest and increase its growth and service to the clients.
Myth 4: Can the Needs of My Firm Be Met With Outsourced Services?
Customization Issues It is a myth that outsourced accounting services follow one approach for all, making it difficult for firms to find specifically tailored outsourced accounting services.
The most ideal outsourced accounting services offer an approach that is more specialized and custom-designed according to the needs.
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Service providers will work with the firms to support them in understanding their requirements and hence will deliver services specifically made for them.
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These outsourced teams can be conveniently able to adapt any of the accounting software, processes, and reporting requirements.
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Customization ensures firms receive services aimed at meeting their business objectives
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It also allows you to scale up or down services, unlike the flexibility you would get from an in-house team
Myth 5: Data Security is a Major Concern in Outsourcing
Concerns Regarding Data Security The CPAs are concerned about data security in case of outsourcing data to an external party for accounting services. They believe that, through the implementation of outsourcing, they will expose themselves to data breaches and unauthorized access to sensitive data.
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The accounting outsourcing services for CPAs in the USA work with the highest level of data security.
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These vendors take the best-in-class cybersecurity measures to ensure the data safety of the clients.
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Data protection regulations and standards in the industry areadhered to by the outsourced services.
Firms can demand regular security audits and reports by their service provider.
Data security is better achieved through outsourcing in most firms because the providers concentrate on securing critical information.
Conclusion
So many myths surround outsourced accounting services and instill fears into small CPA firms. However, debunking these myths will help firms realize what outsourcing accounting services can bring to their practice: additional control and increased reliability, cost savings, and protection of data. Small CPA firms that outsource can focus on growing their business and delivering exceptional client service. Don't let myths hold you back—explore the possibilities of outsourcing today.
Remember: FINO Partners – Because who said accounting couldn't be a laughing matter?
