When you consider outsourcing your accounting and payroll functions from a certified public accountant, you should consider ten factors beforehand.
Reasons to Outsource a Certified Public Accountant
There are many renowned reasons for outsourcing a certified public accountant, few of which include:
Greater net returns on sales of a portion or all of your business
You can sell or buy business units without reducing or adding your payroll or accounting staff
Your general and administrative expenses reduce up to 27 percent or even more
You have the access to latest innovations in technology without having to worry about training or investing in your staff
You do not have to be subjected to unavailability, departures or vacations of your payroll or accounting personnel
You have the access to excellent practices in payroll and accounting industry
Factors to Consider Before Outsourcing to a Certified Public Accountant
Here are the ten things that you will need to consider before you decide to outsource your payroll or accounting CPA.
His Expertise in Industry
Your CPA should have the ability to deal with the distinct considerations that come along with your business. Some businesses can be fairly challenging and relatively unique and if you own a similar business, then consider his expertise beforehand.
His Expertise in Normalization and Data Collections
There can be numerous data sources required within a specific industry such as suppliers, banks etc. The list of data sources can be complex and lengthy. Search for CPAs who can perform integration and polling really well.
Web Based Architecture
It is necessary for you to have access to all of your financial data from anywhere and on any device. For this reason your CPA should be aware of the web-based service architectures so that the required data is accessible from any place of your business.
Quality Control and Improvement
Make sure your CPA provider has a core function of maintaining quality control and improvement, and being current on the ideal practices of payroll, accounting and finance. He should also be aware of all regulatory and law changes in taxation at both federal and state levels.
According to different industries there are requirements and standards for various tasks like testing internal records and monitoring of financial reports. If the outsourcing CPA does not have relative compliance, you will not be able to receive the level of control you really need. It will eventually cause a higher level of risk of the integrity of your financial reporting.
Certified and Qualified Staff
If you are searching for a provider of outsourcing services, you have to ensure that their staff is trained sufficiently in the matters of financing and up to date on the recent innovations of the payroll, accounting and finance.
Level of Flexibility
The outsourcing CPA should have adequate levels of flexibility whenever service level delivery is concerned so that your specific client requirements can be matched accordingly.
The CPA that you decide to outsource should have the appropriate technical facilities and resources to scale accordingly with your business.
A single point of communication should be established by you and your staff with the provider so that he might be able to answer your questions, helps you and finds answers for you immediately.