Introduction
The need for accountants in the business world is binding. With the changing conditions for accountants, the profession has molded its presence by choosing to work independently rather than under someone. For many obvious reasons, the idea of a self-owned house for accounting services has laid the foundation for starting a CPA firm. By keeping efficiency paramount accountants are centered on how independent they can be to focus on their core competence and strategies. To benchmark the practice of the profession, CPA firms specialize in business plans, assurance services, and financing which collectively enables them to achieve the unquenchable desire to succeed. However, the technological and leveraging advances over the years have significantly elevated the efficiencies and productivity of the firms, and to capitalize on the advantages firms are leveraging offshore outsourcing strategies by accessing quickly available talent pool with the required skill set available at different time zones under a budget. Offshore outsourcing eliminated the risks of managing and dealing with unknown dangers.
Size and Growth of Accounting Industry
The priorities for starting a CPA firm with the role of Outsourcing
The overwhelming demand for CPA firms in the market demands quality streamlined operations to give the existing and potential firms an edge in the competitive market. With an effective way of reducing cost, increasing productivity, and boosting profitability outsourcing allows firms to experience access to a large pool of qualified talent, trained and skilled to serve and fulfill the non-core activity requirements of firms.
Operations Outsourcing: Smart work for Starting a CPA Firm
Licenses
CPA firms are widely considered an extension of the world’s big fours, and with that, the responsibility of firms for ethnicity increases. Every state has its own set of education and experience requirements for starting a CPA firm, but the most basic and common permits are:
Permit related to general business operations
Permit for Signature
Permit to work from home
The licensing process is broadly related to payroll and operational bookkeeping, business growth and valuation, and tax preparation and planning in which the outsourcing provides comprehensive services assuring the firms to comply with all the taxes and regulations.
Base Software for the firm
To manage and automate its core financial aspects, firms opt for meticulously designed software as per their needs and requirements. While starting a CPA firm choosing the right software is one part and getting the staff trained on that software is another, this is where outsourcing facilitates the firms by ensuring robust compliance capabilities that stay up-to-date with evolving regulations and establish a seamless collaboration among CPA firms and their clients.
Budget for Client Acquisition
In a cut-throat competitive market, the struggle to acquire and retain clients is a critical point where the acquisition part deals with all the activities related to creating and associating the demand of the potential clients, and on the other hand retention focuses on the active and close customer engagement for a long-term satisfactory relation with the clients. While starting a CPA firm it requires outsourcing to equip accounting and bookkeeping experts acquainted with various sectors with unique financial intricacies to serve a diverse set of clients in the market.
Plan for data security
The demand for data security is expanding, as the growth of global collaboration in the accounting industry is becoming more complex and integrated, the requirement for a robust framework to protect against data breaches to ensure privacy and uphold clients’ trust especially when starting a CPA firm. Outsourcing firms establish a clear contractual agreement, foster a culture of continuous learning, and implement a multi-layer security approach to the firms ensuring the protection of the firm reputation. The extended experts provide end-to-end solutions for managing financial data security and leveraging advanced analytics allowing firms to make informed decisions for growth.
Build an online presence
To establish a solid and recognizable digital persona firms plan and implement different strategies to embark on their virtual presence in the market to match the needs of modern accounting client calls to develop credibility in the accountancy industry of tomorrow. Detailed and moving time information is required while starting a CPA firm to craft a strong online presence in the ever-expanding marketplace, outsourcing functions to analyze and navigate challenges to plan the financial future of the firm.
Leverage Networks
Starting a CPA firm involves building and maintaining quality networks by forming a compelling profile highlighting accomplishments, expertise, and goals. Trust is the keystone of the accounting profession as the client trusts the firm with the most confidential data it holds. Outsourcing explores various virtual desktop methodologies to handle opportunities that may never come to the firms in actual offices. With the help of robust cloud computing solutions outsourcing standardizes the security protocols to maintain the security protocols of the firms.
Client-Centric Focus
While starting a CPA firm outsourcing allows operations to be more client-facing which enhances the engagement and attention of the firms more with the existing and potential clients. The extended team helps to collect, compile, and analyze the data to streamline the working and boost the efficiency of the firm for better and quality service delivery contributing to higher customer satisfaction.
Magistral Consulting Services for CPA Firms
Magistral’s offshore analysts collect, analyze, and visualize financial data on a full-time and fractional basis to reduce operations costs and bring in specialist knowledge of finance and operations. The major services Magistral offers are:
Transactional Accountancy Services
The complex transaction of accounting requires an experienced finance team especially while starting a CPA firm, Magistral handles all the accounting transactions in accordance and compliance with GAAP. Magistral follows a centralized system of processing transactions, collection of payments, payments, and invoicing.
Statutory Accounting and Tax Support
Magistral provides consistent accounting and tax management processes following GAAP and required global statutory tax regulations and compliance services for both direct and indirect taxes.
Accounting and Tax Advisory
Magistral serves its clients with the best possible tax advisory services to minimize tax liability allowing them to fuel their growth in the market. For starting a CPA firm Magistral offers financial transformation to technical accounting to finance process optimization all in one place.
About Magistral Consulting
Magistral Consulting has helped multiple funds and companies in outsourcing operations activities. It has service offerings for Private Equity, Venture Capital, Family Offices, Investment Banks, Asset Managers, Hedge Funds, Financial Consultants, Real Estate, REITs, RE funds, Corporates, and Portfolio companies. Its functional expertise is around Deal origination, Deal Execution, Due Diligence, Financial Modelling, Portfolio Management, and Equity Research
For setting up an appointment with a Magistral representative visit www.magistralconsulting.com/contact
About the Author
The article is authored by the Marketing Department of Magistral Consulting. For any business inquiries, you can reach out to prabhash.choudhary@magistralconsulting.com
How does Magistral help in managing the software and compliance needs of CPA firms?
Magistral provides access to experts trained in various software like Xero, QuickBooks, and SAP Concur to meet the requirements of CPA firms. While starting a CPA firm Magistral facilitates the firms with seamless collaboration and crucial capabilities for financial management.
How does Magistral help CPA firms in client acquisition and retention?
Magistral provides specialized accountants in various sectors and areas to manage the diverse work requirements of different clients to ensure long-term customer retention.
How does Magistral help CPA firms to ensure data security?
Magistral follows a multidimensional security approach to protect the sensitive financial data of the clients by maintaining proper access control and implementing only authorized data that is allowed to be transferred.