Many businesses find accounting insurmountable to be done internally, often due to the budgetary demands in recruiting a highly skilled workforce and instating accompanying technology. With Client Accounting Services (CAS), enterprises can offload some of their accounting tasks to CPA firms to get the best of both worlds — experienced and knowledgeable accounting personnel available at all times at a befitting price.
A recent Client Accounting Services Survey, which polled more than 1,700 CPAs, uncovered that 25% of the surveyed businesses that outsource their accounting process to CPA firms report higher profits, growth, and revenues, as they become better armed to make business decisions, and enjoy an easier accounting experience.
Let’s delve deeper to understand why outsourcing accounting processes can be a great value addition to businesses.
Why is CAS beneficial?
1) More Cost-Effective Than Building In-House Teams
For companies without deep pockets, hiring employees and setting up teams incur substantial costs in the forms of training, equipment, compensation, and many other HR expenses. With CAS, however, you are only charged for the service that is available and these firms already have the technology and the workforce in place.
In addition, CPA firms often use some of the latest technologies such as AI, RPA, and cloud computing to process and record transactions that improve efficiency and turnaround time without compromising on quality.
2) Fidelity in Accounting
CPA firms have a well-trained and experienced workforce dedicated to ensuring consistent, efficient, and error-free reporting. In addition, they also have automated processes that not only make tracking finances easy but also improve accuracy and efficiency. These firms also stay apprised of the latest accounting trends and technology to continually upgrade and improve the accounting process.
3) Improved Productivity and Focus on Business
With teams of experts handling your finances, CPA firms can substantially improve your productivity. CAS leverages analytics and business intelligence tools to glean a better understanding of finances.
Accounting is a time-intensive and sensitive activity that can derail attention from other aspects of business, especially if it is not a company’s forte. Outsourcing accounting frees up time and resources which can be better utilized on other core business functions.
4) Streamlined Compliance and Reporting
It is imperative for CPA firms to stay up to date on financial regulations across various industries. Their proficiency, experience, and continuous monitoring of regulations help businesses ensure that their financial records are in full compliance with regulatory laws.
As CPA firms are external to your business, they allow for better reporting as screening suspicious activities and fraud prevention can be done from a neutral vantage. CPA firms also have a robust system of controls that allows for detecting and resolving abnormalities and safeguarding critical data.
5) Well Informed Business Decisions
Businesses and CPAs have realized the positive impact of CAS on decision-making. In the same CAS Survey, 31% of those polled said that CAS helped them be more prepared for business decisions, and 24% found greater financial insight. These results lead to valuable, hard-dollar CAS outcomes, such as increased profit (28%) and increased revenue (23%).
CPAs also assist enterprises in peripheral processes like capital optimization, investments, and profit maximization. CAS firms are also the seat of valuable financial insights which can guide your business in growth strategy and outlining business expansion models,
6) Improved Preparedness for Taxation
For every enterprise, irrespective of its size, getting the taxes right is indispensable. Businesses bear an obligation to track all relevant taxes and any shortcoming has serious ramifications. With experts on top of your finances, CPA firms ensure your records are compliant with the prevalent tax regulations and practices.
CPA firms – like ours – offer comprehensive services that are tailored to meet your business needs with flexibility at different stages of your business. Client accounting services assuage the burden of accounting on companies while earning credibility as trusted financial advisors.
Consequently, you get access to tools that enable them to have better financial insight, more time, and accounting professionals who can successfully guide them through challenges. CAS forges a vital link between accounting firms and their clients that fosters financial prosperity.