Outsourcing CPAs: Frequently Asked Questions

Why do businesses resort to outsourcing accounting functions?
Most businesses resort to outsourcing CPA functions of in-house accounting services for the following reasons:
· Top employee resigns and key accounting jobs are neglected.
· Outsourcing CPA functions lessens, if not removes, recruitment and training costs
· Employee commits a serious offense against company rules and regulations like fraudulence, dishonesty or fund embezzlement, culmination in his/her termination
· To increase transaction volumes that staff are unable to accomplish on time
· Acknowledgment that outsourcing CPAs can bring favorable results such as speed up management of payables as well as the collection of receivables, and upgrade the level of vendor financing among others.
· Immediate need for administrative or fiscal management of business processes [such as] assist projects, provisions for maternity leave, coverage for military service and illnesses, business reorganization or relocation prospects.
If there is already an in-house bookkeeper, why is there still a need for outsourcing CPA functions?
Bookkeepers see to it that accounting records of pertinent monetary transactions are regularly updated. However, when companies begin outsourcing CPAs, they can improve their current cashflow and create a sturdy database for all their accounting records. In effect, the service provider assumes a proactive role in the operations of the entire process, including accounts payable or accounts receivable. What's more, CPA outsourcing firms provide bookkeeping services that are half the rate charged by in-house bookkeepers - yet just as, if not even more, efficient.
Will outsourcing CPA functions obliterate my need for a company accountant?
Of course not. Company CPAs provide services that are altogether different. Sub-contractor company CPA functions involve business advisory, preparation of financial statements as well as federal and state tax returns, and compiling and submission of necessary reporting documents like those required by the bank. Financial planning, structuring and management should rest on the shoulders of in-house accountants.
However, when you resort to outsourcing CPA functions to a third party service provider, you will be able to get things done on a daily basis. Outsourcing CPA work goes beyond advising and preparing financial statements or income tax returns. CPA service providers overseas see to it that core accounting functions are attended to and solidify the company's CPA foundations. They do all the dirty accounting work, which can be time-consuming and can distract the management from attending to more pressing matters. Rest assured, outsourcing CPA functions is an answer to companies' back office but heavy-weight accounting problems and not just minor ones.