There are many benefits and reasons to outsource as discussed during our Firm of the Future section, but some of the most common pain points of accounting firms are:
Shortage of Accounting Staff
Attracting and retaining staff these days can be difficult. The loss of a team member at the wrong time of the year can have significant effects on productivity or billings. Setting up a team offshore can solve this problem as there are significant levels of qualified CPAs and administration staff available and ready to commence employment with you.
High Wage Cost
As an employer, you already know the costs of employing staff for your practice are expensive and not decreasing, causing margins to be squeezed, and this isn’t getting better. A benefit of employing staff with The Outsourced Accountant is you can employ a full-time dedicated employee for $15,000-$18,000 AUD or £8,000 – £9,500 GBP per year. This low wage cost allows you to employ 3 to 5 staff offshore for the cost of one in Australia, New Zealand or United Kingdom. This also allows you to increase your firm’s capacity by 400% for the same cost.
Price Pressures on Accounting Services
With the evolution of cloud-based technology and offshoring becoming more common practice, compliance services are becoming a commodity which is putting pressure on prices more than ever. A firm that used to operate in one region can now operate nationally, or even globally. Your competition is becoming more agile, mobile, and cost-effective, which will ultimately allow them to charge lower costs and deliver their services quicker.
If You Don’t, Your Competitors Will
The early adapters in the SME market are already doing it, you just may not know about it yet. If you don’t embrace these changes and think your clients won’t leave you due to your long-term relationship, you will be in for a rude shock when a more agile, cost-effective and quicker to deliver practice swoops in and takes your clients from underneath you. Also, your competitors may now have great access to the best offshore accounting services.