How Can Accountants Outsource Their Main Work?
Many accounting practices outsource their work. Here’s a blog post detailing how accountants can outsource their main work.
Outsourcing is a common business practice in the business world. Research shows technological advancements have resulted in increased outsourcing. Businesses outsource their processes and functions for several reasons, including saving money, time, increased efficiency, accessing different skills and resources.
Normally, most people expect manufacturing and services businesses to outsource their functions. However, if you’re an accountant and not outsourcing your business functions, you might be placing yourself at a disadvantage compared to your competitors.
Accounting practices can outsource their main work like most other businesses. Many accounting firms already employ this practice to enhance their efficiency and optimize business processes.
Tax accounting and bookkeeping typically go hand in hand. It’s uncommon for an accounting firm to only focus on one aspect and not the other. However, just because you offer both services doesn’t mean they’re equal. Most accounting firms will readily admit that bookkeeping isn’t nearly as lucrative as tax accounting. As a result, many practices have found workarounds to this dilemma. Let’s assess them in detail.
Outsourcing Your Main Accounting Work
Here’s how accountants outsource their main work:
We’ve already established that bookkeeping is rarely as profitable as tax accounting. However, that doesn’t mean your bookkeeping services must be a loss-leader. The growth of cloud computing technology and outsourced bookkeeping services has greatly impacted how accounting services handle bookkeeping. The primary issue with bookkeeping is it’s time-consuming and tedious. Moreover, the margins for accounting firms are minuscule. As a result, every passing moment you work on bookkeeping is time you could have spent on other value-added services like tax accounting and planning, financial advising, etc.
That’s precisely why many accounting firms are outsourcing bookkeeping services to third-party providers. Third-party providers combine cloud technology with accounting management practice software to handle your bookkeeping needs, enabling you to work on other value-added services.
Marketing and Sales Ancillary Services
Accounting practices are like any other business. They need customers to function and thrive. If your accounting firm doesn’t have enough clients, you’ll likely find yourself in financial trouble. You require marketing and sales services to get your practice’s name out there. Otherwise, clients can’t find you. However, as a firm full of highly qualified accountants, you don’t want to spend your valuable time on marketing and sales. After all, those aren’t your core competencies. Instead, you want to focus on serving your clients to the best of your capabilities. That’s why many accounting firms also outsource their marketing and sales ancillary services to third-party services providers. Ideally, you’ll want to find a 360-degree marketing agency to handle sales and marketing for you. They’ll help you gain new customers through social media marketing, pay-per-click advertising, outbound calls, and email marketing campaigns.
Automating Your Tax Preparation Process
Preparing tax documents for clients can be a hectic and time-consuming process, particularly during the busy tax season. You’ll have numerous clients sending their documents at the last minute, meaning you’ll have to prepare yourself for overtime shifts and late working hours. Although seasoned tax professionals can handle tax preparation with ease, they still must put in the time to collect information from clients for preparing T1s.
That’s where tax accountants can use technology to their advantage. Technically, you’re digitalizing rather than outsourcing your main work. However, as long as you can benefit from reducing your workload and streamlining your accounting functions, you’re on the right track. Taxbotic is a game-changer for tax accountants, helping you automate T1 data collection and streamlining your T1 workflows.
The Taxbotic Advantage
Taxbotic is a T1 workflow management software that can be your companion this tax season. You can use the software to alleviate your workload, as our software enables you to request T1 information from clients with a single click. We use a secure, convenient cloud-based accounting system, meaning you don’t have to worry about security breaches. Our software also automates the tax checklist and reduces the back and forth with clients.
Visit our website for more information.