Help Needed? How CPA Firms Can Use Offshoring to Grow Their Capacity and Serve More Clients
The accounting profession is facing a persistent talent shortage, forcing firms to get creative in how they find and deploy skilled workers.
As the recent Journal of Accountancy article "Offshoring for CPA firms: The hows and whys" written by By Laurence Whittam and Kane Polakoff highlighted, many firms are turning to offshoring as a strategic solution.
However, as the article rightly points out, successfully implementing an offshoring strategy requires careful planning and execution. At Madras Accountancy, we've worked extensively with CPA firms to help them navigate this transition and unlock the full benefits of a global talent pool.
Here's how offshoring can concretely help CPA firms grow their capacity and serve more clients:
Expand Your Workforce Without Hiring Locally
Offshoring gives CPA firms access to a much larger pool of accounting talent, allowing them to scale their workforce quickly without the constraints of the local job market. This is crucial in a tight labor environment where it's difficult to find and retain qualified staff.
One of our clients, a 5-person CPA firm in Atlanta, was able to offshore enough work to keep 3 full-time outsourced employees busy. This allowed the firm to take on a significantly higher volume of tax and accounting work without having to hire locally. The firm was able to offload around 12,000 billable hours per year to their offshore team, freeing up their onshore staff to focus on higher-value activities.
Improve Efficiency and Reduce Costs
By offshoring routine, high-volume tasks like tax preparation and bookkeeping, CPA firms can free up their onshore teams to focus on higher-value, client-facing work. This not only improves productivity but also reduces the overall cost of service delivery.
For example, we helped a fractional CFO practice reduce their system management time by 75%. This gave the firm's principals an extra 8 hours per week to spend on strategic planning and business development instead of fighting fires. The firm was also able to add 4 new clients without increasing their onshore hours, thanks to the efficiency gains from offshoring.
Provide 24/7 Coverage and Faster Turnaround
With teams operating across time zones, offshoring enables CPA firms to offer round-the-clock service and faster turnaround on client work. This can be a major competitive advantage, especially during peak seasons like tax time.
One of our CPA firm clients was able to reduce their tax return preparation time by 3x after offshoring the initial data gathering and drafting work to their India-based team. This allowed the onshore managers to focus on final review and client communication, delivering a faster and more seamless experience for their clients.
Access Specialized Skills and Expertise
Offshoring doesn't just provide additional capacity - it also gives CPA firms access to a diverse pool of specialized skills and expertise. Whether it's niche tax knowledge, industry-specific accounting proficiencies, or advanced data analytics capabilities, firms can tap into talent that may be scarce or cost-prohibitive to find locally.
This allows CPA firms to expand their service offerings and better serve the evolving needs of their clients. For example, one of our clients was able to launch a new advisory practice focused on sustainability reporting by leveraging our team's expertise in this emerging field.
The Path Forward
The accounting profession is at a crossroads, with evolving client demands and a persistent talent crunch. Offshoring, when implemented strategically, can be a game-changer – providing firms with the resources and agility they need to grow their capacity and better serve their clients.
At Madras Accountancy, we've seen firsthand the tangible benefits of offshoring done right. By accessing a global talent pool, improving efficiency, providing 24/7 coverage, and tapping into specialized skills, CPA firms can position themselves for long-term success in a rapidly changing market.
Contact us today to learn how Madras Accountancy's proven offshoring solutions can help your firm scale its operations, reduce costs, and stay ahead of the competition.
