A successful business requires a focus on tomorrow and a readiness to execute changes with thoughtful planning. Adding Accounting and bookkeeping services can help firms to increase revenue and provide clients with more openings to suit their business with a higher level of satisfaction.

Outsourced Accounting

Leave it to the pros.

Firstly, there is a paradigm that needs to be broken before starting any new line of work. There is no such concept as data entry or basic bookkeeping when it comes to accounting services. The old-school concept of write-up work is pushed to the lowest level. Before searching for outsourced accounting services, firms must educate clients on this concept.

When work is done by professionals by adapting the entire process from source documents to financial statement analysis. Accounting becomes the foundation of any business and clients' benefit. The accountant must be entrenched with the transactions to correctly classify, be current, consistent, and compliant. Once your client understands all these basic concepts, they are more likely to see outsourcing the entire accounting system makes sense.

In another way, the client gets more benefited by outsourced accounting services rather than recruiting in-house. According to the survey by Northwest Staffing Resources, an employee can cost approximately 57% more than the stated wage due to the cost of benefits and the amount of time they spend to complete a particular task.

Let's see this with an example if you hire an accountant for a $50,000 employee could actually cost you $73,000 including all the additional costs needed. On either side, the outsourced accounting firm can provide a much better complete service for roughly $40,000 per year.

For the monthly fees, the clients get more benefits since the outsourced accounting firms bring experience from a variety of clients' situations, continuing education, and the firm's sources. The work is done in much less time without the normal disturbances of an in-house employee.

One of the biggest advantages of outsourced accounting service is objectivity. While an employee may feel the need to avoid certain topics, such as confidential owner compensation issues, the private firm can guide the client on sensitive matters and help them with a solution.

The firm is confidential to all the private financial details and develops a relationship as a trusted objective advisor with the client.

Can It work for your firm?

There are more firm and client interactions, and the firm keeps confidential all the private financial information. It creates a more intimate relationship between firm and client. Because of the trust created, the relationship may drive to other roles such as tax work and CFO advisory services.

The firms must consider the four areas when planning for the service line: resources, service philosophy, client relationship, and fees/engagement agreement.

  • Resources

If you decide to add outsourced accounting services to your firm, start by recruiting and selecting the staff with the necessary expertise. Small business controllership and deep software experience are vital, and good soft skills will enhance client communications.

In addition to human resources, you must also consider the other technical resources required. Explore the various software, hosting environments, document management software, portals for exchanging the documents safely, merchant services, and other tools that fit right for your firm and your clients.

  • Service Philosophy

You cannot do all the things for all clients. You should decide the boundaries of your services. For example, will you work on-site and off-site? Provide an accountant-centric system rather than the client-centric system.

The accounting-centric system is one where you control the system, the client delegates the accounting to you, and you provide the required information needed to run their business.

Sharing the accounting with your client creates incompetence and lowers your value while increasing write-offs.

  • Client Relationship

Clients endure value when you help them learn what their financials are saying. By providing your clients anytime access to their financial reports by using the cloud. This could also be dashboard customized and needs to see.

By providing access to their financial reports anytime can build a trust relationship between firm and client.

  • Fees/Engagement Agreement

Finally, you'll need to figure out how your services will be priced, presented, and outlined in an agreement. Obviously, the more cost-effective the plans are the more responsive current and proposed clients will be.

A fee agreement should include the details of the scope of services as well as exclusions. A recommendation is to include a statement that the flat rate is for routine work that doesn't exceed XX hours each day.

Adding outsourced accounting and bookkeeping to your firm's menu of services can result in an increased revenue stream. Approach this process with proper planning and dispel old-school thinking.

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