The accounting world has always been a traditional and risk-averse field. The entire process and operations always follow a measured approach with little help from technology. Having worked with hundreds of CPA firms as a remote accounting partner we know how the majority of them are still reliant on conservative methods – why not, having a standard approach is the way to mitigate the pressures of deadlines in the accounting industry.
However, this cautious approach has also resulted in a lack of innovation, process improvements and a dip in profitability for the CPA firms. The rise of the gig economy, rapid adoption of technology, and ever-growing competition have exacerbated the problems that are being faced by traditional CPA firms.
The accounting world is changing – Is your CPA firm prepared?
As a remote accounting firm, Outsourced Bookkeeping has closely worked with CPA firms of all sizes. We have noticed the improvements and tweaks that have helped them solve their problems and improved their profitability. While each CPA firm is different, we understand the problems faced by each of them are more or less similar and hence in this blog we list out key pointers that can improve your current process and shoot up the profitability.
Reduce operational inefficiencies: Lack of the right process, tools, resources or inefficient communication is the common reason for operational inefficiencies in the accounting industry. Every CPA firm is plagued by at least one of the above problems which must be readily identified to sort them out.
Going by our experience with CPA firms, we found that most CPA firms tend to overcomplicate the process with extra steps for better accuracy. In the case of remote working, this can surely lead to confusion and extra burden burning your time and money. It is advisable to seek out improvements and update the age-old processes for better efficiency and productivity. While communication must be sorted out internally, technology can be embraced to cut down the process inefficiencies.
Embrace technology for improved productivity and efficiency:
Even if the process is solid, a lack of resources or technology stack can burden the in-house resources resulting in errors and process inefficiencies. Fortunately, technology is the solution to both problems and this is how few CPA firms have benefitted from technology:
- Cloud computing and web-based accounting technologies have become a norm for CPA firms to deliver and connected environment for both clients and employees.
- CPA firms that are facing problems with mundane bookkeeping problems are actively leveraging machine learning to connect their processes and data systems. These connections help them consolidate all the data to simplify analysis during the audit.
- AI & machine learning are being leveraged by CPA firms to deliver business intelligence and strategic advice for businesses.
- Accounts Receivable and Accounts Payable automation tools have become a norm in the accounting industry for better performance.
- Larger CPA firms are also actively investing in a diverse set of tools which can create a seamless and robust experience with more visibility.
- Businesses with a lack of time or capital for technology investment were still able to benefit from technology by outsourcing specific accounting functions to remote accounting firms like Outsourced Bookkeeping.
Outsource low-value services: Accounting is notorious for mundane and repetitive tasks that demand utmost accuracy. For example, bookkeeping can eat away at your valuable time and may still remain a low ROI service for you. While it is bookkeeping for one it could be any other service for the other. To identify the least ROI services that are pinching your profit margins and try to streamline them so hurt you lesser. If you cannot, consider outsourcing them to the right accounting partner with the specific specialization.
Expand your services & tweak your pricing model: The rise of the gig economy has given access to niche accounting professionals all around the world who can help you expand your services and also your clientele. Partnering with the right remote accounting professional reduces the burden on your resources, and gives you the flexibility to choose the right clients and focus on your niche. In the post-covid world, where every small and medium business is looking for strategic advice, focusing on high-value services will be the right use of the time and resources.
In summary, if you are a CPA firm we advise you to improve your current process, and technology and focus on your niche to improve your profitability. Fortunately, a CPA firm can easily implement all the above tips by choosing the right remote accounting partner like us at Outsourced Bookkeeping.
As one of the leading outsourced accounting firms in the business, we have assisted hundreds of CPA firms to improve their profitability with our high-ROI accounting services. More info about our services is here: https://outsourcedbookeeping.com/