Why accounting firms outsource bookkeeping?

High salaries of good bookkeepers

Good bookkeepers demand high salaries. For most accounting firms, major portion of the revenue made from bookkeeping goes to just pay their bookkeeper salaries. Accounting firms struggle to achieve decent profit margins on bookkeeping and hence choose to outsource their client bookkeeping jobs.

Good bookkeeping staff leave for other opportunities

Despite paying good salaries, it is very difficult to retain good bookkeepers as they know they are good and look for higher salary and opportunities elsewhere. It is very difficult to plan for business continuity when good staff leave. Outsourcing is a fantastic option for this problem scenario.

Managing the burden of overhead costs

The overhead costs such as rental, utilities, infrastructure, software, hardware and management of resources is a big burden for any practice. Cutting down on the overheads plays a major role in increasing the profitability and outsourcing is a fantastic avenue for significantly reducing these overhead costs.

Accept all bookkeeping jobs (irrespective of staff availability)

Though bookkeeping is not a profitable part of the business, practices cannot afford to reject bookkeeping jobs. Only if bookkeeping is accepted, you will be able to win highly profitable accounting or tax work. When you use us, you can accept any amount of new bookkeeping jobs (small or large) and we will seamlessly manage everything.

Spend more face to face time with clients

Clients trust their accountants for confidential business advice and support during decision making. Accountants who spend more face to face time with their clients retain clients for many years and win more clients through references. When you use our outsourcing service, you will have ample time to spend with your clients whilst we manage all the time-consuming tasks.

Increase profit margins of the practice

Accounting firms that do not outsource typically enjoy profit margins anywhere between 10 and 20%. Accounting firms that utilize outsourcing enjoy profit margins between 40 and 60%. That is why highly profitable accounting firms usually engage in outsourcing.

Bookkeeping consumes lot of time for too little money

Let us be honest. Bookkeeping is a boring, mundane job that saps lot of energy and time ultimately for too little money. However, it is necessary because rejecting bookkeeping also means rejecting highly profitable accounting/tax work. Just accept any bookkeeping job and outsource it. We will manage everything.

Outsourcing your bookkeeping is an easy and instant solution for all these problems faced by accounting firm. When you start to outsource your bookkeeping tasks all these problems are immediately sorted out.