Knowing how much money you might need to allocate to outsourced accounting, tax preparation and bookkeeping, is vital if you’re to budget successfully for it.
Outsourcing can be a wonderfully cost-effective tool to help CPAs cope with their workload while still offering clients a great value service, and with CPA firm outsourcing increasing in popularity year-on-year, it’s important to understand the various factors that can impact the different pricing structures.
To help you adjust your budget accordingly when outsourcing, here are some of the main factors affecting the cost of such a service:
The size and complexity of your accounting firm
How big or small your company is, and how complex it’s structure and services offered may be, can have a significant impact on the cost of outsourced accounting, tax preparation and bookkeeping.
For larger CPA firms whose financial needs are more intricate and who deal with more transactions, the cost of outsourcing will naturally be higher than for smaller companies with less complex needs.
The scope of services required
Whether you require basic bookkeeping to be outsourced, tax preparation, accounting or payroll management (or all 4), the scope and complexity of what you require, will of course affect the cost of the services provided for you.
To find out exactly what you might be charged, reach out to an outsourced service provider directly.
The level of expertise you need
If you need an accounting professional with specific expertise in a certain area to assist you, then you can expect to pay more for their services than those of someone qualified to carry out basic bookkeeping duties (as is reasonable to expect).
The frequency of services
How often you plan to use the services of an outsourcing agency, will also play a part in determining how much you are charged. If you only need their services during busy times of the year, such as tax season, then this will cost you less than were you to seek their help on a monthly or quarterly basis.
The outsourcing providers location
Outsourcing to a country like India, for instance, will cost you considerably less than if you were to use a provider in a developed country with a higher cost of living.
India has large pools of talented accountants and bookkeepers ready and waiting to assist CPA firms cope with their workload and expand upon the services they’re able to offer their clients, and all at low, low prices. With salaries significantly less in such countries, CPAs can take advantage of their expertise for a fraction of the cost of an in-house accountant or bookkeeper.
Additional services or customization
Add-ons such as dedicated support or advanced financial reporting, are likely to raise the cost of outsourced bookkeeping services.
To make sure you know exactly what services incur what fees, be sure to discuss your specific needs with your chosen provider early on.
Outsourced accounting, tax preparation and bookkeeping services are a fantastically cost-effective way to help your CPA firm stay one step ahead of your competitors, while guaranteeing client satisfaction, and your overall profitability. But, if you don’t carefully think through your needs and goals before selecting a provider and signing up for their services, you might not enjoy as valuable an experience as you would otherwise.
