How Much Does Outsourcing Accounting and Bookkeeping Services Cost?
Every single firm, such as CPA and accounting firms, irrespective of their size, must ensure that they allocate time and resources to serve their clients efficiently. However, bookkeeping and accounting are among the most tedious tasks for a firm as they can be very resource-intensive. And this is where the approach of outsourcing these tasks comes in. There are substantial benefits that could be gained from outsourcing some tasks to an outsourcing partner or a company to minimize costs and save time so that the firm can focus on meeting its goals.
A relevant question would be, how much do those outsourced services cost? Read the blog further as it answers the questions surrounding the costs, advantages, and other relevant aspects of outsourcing in accounting and CPA firms.
What Is Accounting And Bookkeeping Services Outsourcing?
Outsourcing partners handle your accounting and bookkeeping tasks. These are the tasks, which typically include day-to-day financial activities such as managing accounting records, payroll processing, balance sheet reconciliation, and financial reports.
So, outsourcing bookkeeping and accounting tasks does not mean a firm pushes work onto another business; instead, it has the scope of collaboration that allows for quality services to be rendered.
Reasons that Change the Costs of Outsourced Bookkeeping and Accounting Services
Accounting and bookkeeping services outsourcing costs vary a lot. This variation can be attributed to the following factors:
1. Scope of Services
The scope of services that a client requires impacts the cost a lot. Generally, firms outsource bookkeeping, which can be data entry, preparation of accounts payable and accounts receivable, completing payroll, preparing taxes, issuing financial reports, and aiding audits. Pay per range of services depends on the average amount of work required to provide an accounting service, which means companies with a greater range of services will incur higher costs.
2. Rates of Transactions
The number of financial transactions that must be processed monthly greatly affects outsourcing costs. For example, if a firm has a large clientele, then more staff will be required, increasing costs.
3. Level of expertise of staff
When outsourcing, it is best to hire a firm that specializes in the needed range of services, as they incur higher costs. MYCPE ONE is considered a preeminent provider as it focuses on CPA and even accounting firms catering for their more complex range of services.
4. Cloud Vision
Firms using cloud systems, AI tools, and even top-of-the-line accounting software occasionally charge more for their services. While yes the number of errors will be lower, and efficiency will improve in the long term, in the initial few months, these tools will make them seem like an expense.
5. Company’s Geographical Location
Cost-competitive service operators, such as MYCPE ONE, offer exceptional services to US firms. Nevertheless, offshore outsourcing to India and the Philippines tends to be less expensive than onshore services.
Cost Analysis of Outsourcing Accounting and Bookkeeping Services
Based on the previously discussed parameters, one can determine the price projection. Here is what the pricing for various services looks like:
The cost breakdown offered above is solely based on averages and includes the specific requirements and selections made by clients.
Why is Outsourcing Most Beneficial for CPA Firms?
Being cognizant of the costs when factoring in outsourcing accounting and bookkeeping services is essential; however, weighing against the key benefits can render one a more informed decision. Below are some of the advantages of outsourcing accounting and bookkeeping services:
1. Cost Savings:
Hiring and training in-house staff can be expensive. Outsourcing solves this problem by eliminating the costs associated with salaries, benefits, office space, and equipment.
2. Access to Expertise:
Outsourced providers like MYCPE ONE employ seasoned professionals with expertise in accounting, tax laws, and industry regulations. This ensures top-quality work without the hassle of recruitment.
3. Scalability:
Outsourcing offers great flexibility, allowing a firm to either add extra resources or reduce the number of employees based on their workload. During times such as tax seasons, they can increase resources without having to enter into long contracts.
4. Time Efficiency:
Because mundane activities are delegated to someone else, your employees are free to engage in more productive activities like planning, maintaining relationships with clients, and providing other value-added services.
5. Technology Integration:
Outsourcing partners often use the latest tools, enhancing productivity and providing real-time insights.
Choosing the Right Outsourcing Partner
When outsourcing accounting and bookkeeping services, selecting the right partner is crucial. Here’s why MYCPE ONE stands out:
Why MYCPE ONE?
Conclusion
Each accounting and bookkeeping service function is outsourced by CPA and accounting firms to help achieve operational efficacy and cost efficiency as well as add up to scaling, thus achieving a certain goal. Depending upon the extent and nature of services integrated, costs may be incurred. However, CPA firms associated with MYCPE ONE will surely offer high-value and quality service. Your firm does not need to worry about aspects such as adding staff and basing the service on external expertise so that clients are always served efficiently and growth is maximized over time.
About MYCPE ONE
MYCPE ONE ecosystem is designed to empower CPAs, accounting firms, CFOs, and businesses with tailored solutions. From outsourcing to continuing education, digital marketing, M&A advisory, and industry insights, we provide everything needed to help firms grow smarter, faster, and stronger.
Yes, credible providers such as MYCPE ONE emphasize protecting their data and performing all the necessary actions such as providing encrypted systems, safe file transfer, and adhering to regulations such as GDPR, SOC 2, etc.
With a pool of experts available to them without the burden of employing them in office, small firms are able to greatly increase their productivity. They are also able to maintain accuracy and more importantly save time which should be put into catering for clients.
Among the key considerations that are sure to be tackled are the technology capabilities, cost structure, reviews or testimonials and industry expertise. The commitment of MYCPE ONE as a Preferred Partner ensures that CPA firms client’s is well served at the primary level.
Christopher Rivera, Chris serves as a Director of Client Relations and Business Development at Entigrity. He is an expert at leading and managing teams actively from the front. His expertise in sales, training, coaching, mentoring and influencing combined with his competitive nature makes him a strong leader. Chris has traveled through the length and width of the country and has spoken with more than five thousand CPAs, understanding their challenges and limitations. On the grounds of that, he can now easily provide opinions and solutions that can be immensely helpful to the professionals. He has also represented Entigrity at a number of major accounting conferences and networking events.
Imtiaz Munshi, CPA
Atul Bothra
