The accounting profession is going through a revolution characterized by intense competition and client demands that are hard to manage for CPAs. They have to deal not only with the regulatory hurdles but also with the clients’ demands for timely, accurate financial reporting. Dealing with these is not easy, especially when the small firms and sole practitioners are expected to deliver the same variety of services as the big national firms.
Many CPAs are now using outsourced white label accounting services for CPAs as a business solution to deal with such demands as offering expertise, technology, and flexibility to CPA firms. CPA White label accounting services allows firms to enhance their capabilities, cut costs, and maintain their clients' confidence, all under their own name.
Understanding White Label Accounting Services for CPAs
White label accounting services for CPAs is a practice or arrangement in which a third-party accounting provider does the accounting work, such as bookkeeping, tax preparation, or payroll, and then the CPA Firm licenses the service under its name or brand without notifying the client that it was outsourced.
In this scenario, the outsourced white label accounting services for CPAs is the work being done under the covers. The CPA firm is responsible for ownership of the client, communications, and branding. However, all compliance-related and technical work is carried out accurately and efficiently by the outsourced accounting provider or white label service.
Why CPAs Are Embracing White Label Accounting Services
CPA firms, regardless of their size, are all facing similar issues like tight deadlines, the burden of limited staff, increasing overhead, and evolving compliance. Outsourced white-label accounting services help alleviate these pain points by providing scalable expertise without the need to grow internal staff.
Here are the best reasons CPAs are using this model:
1. Increasing Client Demands
Nowadays, clients are demanding immediate responses, real-time insight, and full-service financial advice, not simply one-time annual tax returns. Fulfilling this demand requires time, resources, and technology that smaller CPA firms struggle to possess.
White label partners are one way CPAs can meet the ongoing demand on their time while providing excellent service, as they assist CPA firms with many of the accounting functions that consume time otherwise spent on strategy or client service time.
2. Labor Shortages and Cost of Entry-Level Talent
The accounting profession in the U.S. is experiencing a shortage of qualified professionals to fill the role of accountant, tax preparer, auditor, etc. There is a heightened level of competition to attract and retain skilled accounting professionals, and the overall cost of entry-level talent has only continued to increase.
With CPA white-label accounting services, CPA firms can gain access to trained professionals offshore or domestically, who allow CPA firms to be focused on high-skilled accounting work without the hassle of hiring processes, training, benefits, etc.
3. Seasonal Workload Fluctuations
Dealing with the busy tax season can be exhausting for CPA firms, making off-season months unproductive for staff. Outsourced services give your firm flexibility in adjusting resources up and down with demand, while achieving optimal staff productivity without the financial risk of keeping larger staffing levels year-round.
4. Competitive Pressures and Service Diversification
Many CPA firms are currently expanding their service offerings to include outsourced CFO services, management accounting, and advisory services, among others, to remain competitive.
However, creating internal resources in each of these service categories takes management time. White label service providers give CPAs the ability to add new and high-value services without hiring internal subject matter experts.
Key Areas Covered by Outsourced White Label Accounting Services
White label providers normally provide all accounting and financial support services. The typical services include:
1. Bookkeeping and General Accounting
- Recording transactions, managing reconciliations of bank accounts, and classifying expense transactions.
- Updating ledgers, managing accounts payable, and accounts receivable.
- Keeping books up to date for CPA review and client reporting.
2. Payroll Processing
- Calculating wages, withholding deductions, and tax withholdings.
- Generating pay slips and payroll tax filing.
- Achieving compliance with state and federal payroll laws.
3. Tax Preparation and Filing
- Preparing individual and business tax returns (Form 1040, 1120, 1120S, 1065, etc.).
- Manage estimated payments and extensions.
- Review deductions, credits, and IRS compliance.
4. Management Reporting and Financial Analysis
- Preparing monthly or quarterly management reports.
- Commenting on profitability, budgeting, and performance metrics.
- Assisting CPAs in providing advisory-level insight.
5. Audit Support and Compliance Support
- Drafting financial statements and the support documents.
- Organizing working papers and audit trails.
- Ensuring accurate data for external or internal audits.
By taking advantage of these services, CPA firms have a level of consistency in service quality and can focus their internal resources on relationship management with clients and grow their business.
Top Benefits of Outsourced White Label Accounting Services for CPAs
Below are the major benefits of white label accounting services for CPAs:
1. Expand Service Capacity Without Hiring
Outsourced white label teams serve as a virtual extension of your firm, allowing the capacity to service more clients or offer additional services without increasing your in-house staff. The result is scalable growth for CPAs without the need for additional staffing, while still offering full command of quality and branding.
2. Increase Profitability
When your firm can reduce the hiring, training, and infrastructure costs associated with hiring back-office staff, you significantly reduce overhead. Outsourced white labeling adds professional-grade services for a fraction of the cost, resulting in higher margins without sacrificing quality.
3. Focus on Core Client Relationships
Administrative and compliance work can eat up most of the CPA's time. Having a white label partner to perform backend work allows CPAs to spend more time on advisory, planning, and relationship-building aspects of their business, which is where the true value and profits exist.
4. Access to Expertise
The top white label firms will staff professionals with experience in U.S. GAAP, IFRS, and state-specific tax laws. CPA firms gain access to this global talent pool with the easiest and simplest hiring and training process.
5. Speed and Accuracy
Outsourced teams do not run on the same daily time frame. Depending on time zones, labor will get done faster, usually overnight. Since white label firms also employ staff with advanced accounting software, review/invalidating systems, and quality components like efficiency, accuracy, and control are preserved on all deliverables.
6. Seamless Technology Integration
Most white label accounting firms utilize systems such as QuickBooks online, Xero, Sage, NetSuite, and Draketo provide their services. They will work with your firm’s workflow, software stack, and reporting format for the greatest integration and least disruption.
7. Increased Confidentiality and Compliance
Trustworthy outsourced white label accounting firms have confidentiality policies, NDAs, and secure data environments in place. They follow the SOC 2, ISO 27001, and GDPR standards to help ensure CPA firms comply with ethical and regulatory requirements.
8. Flexibility and Customization
White label firms offer flexible engagement models, whether you need full-time assistance during tax season or bookkeeping for the whole year. CPA firms can customize the services to fluctuations in workload and particular client needs.
How Outsourced White Label Accounting Works
The process generally takes a straightforward, methodical path that emphasizes confidentiality and efficiency.
Initial Evaluation:
The CPA firm determines what tasks to outsource (bookkeeping, payroll, tax returns).
Onboarding and System Setup:
The white label provider will set up secure file sharing mechanisms, assign staff accountants, and agree on reporting standards.
Work Completion:
The outsourced team performs work using the CPA’s software, using U.S. AICPA-compliant accounting standards.
Internal Check and Quality Control:
The completed work gets checked internally before delivery to the CPA firm.
Delivery:
The CPA firm delivers the finished reports or tax returns as per the CPA client’s request, under its own branding, while still owning the CPA client relationship.
This process allows efficient collaboration while protecting the CPA’s reputation, integrity, and confidentiality
CPAs have shifted from simple regulatory practitioners to strategic advisors. For these CPA firms (and the profession as a whole) to be successful in this new dynamic, they need to provide integrated, timely, and technology-enabled solutions without sacrificing profitability or client relationships.
Related Resources
- Why Accounting Firms Choose White Label Software Solutions
- Cost Savings with Outsourced White Label Accounting Solutions
- How White Label Accounting Solutions Empower Accounting Firms
Utilizing outsourced white label accounting services for CPAs presents a formidable opportunity to have it all. White label accounting services provide the technical infrastructure while allowing CPAs to maintain complete control of their brand, provide a higher-level client experience, and meet their scalability needs.
Contact The Fino Partners today to get the best white label accounting services for CPA firms in the USA.
