Kevin O’Connell, Audit Partner at Baker Tilly, sat down with Scrubbed’s Chief Revenue Officer, Youni Kim, at a recent Accounting Today forum to discuss how outsourcing with Scrubbed is helping Baker Tilly with its plans to scale, tap into specialized talent and broaden service offerings.
Here are five key takeaways they shared that can help CPA firms grow sustainably with an outsourced accounting provider:
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Think Strategically About Outsourcing
The basic strategy that CPA firms are using to tackle their talent pool concerns is hiring college graduates,” says Youni. “But, if you’re not one of the big four, then how do you fight for the best talent coming out of college?” Typically, firms consider options including workload reduction, demand reduction by trimming clients, and outsourcing to address the challenge. Outsourcing accounting and finance can help CPA firms to scale and address capacity challenges, talent shortages, and broaden service offerings and outsourcing partners can be exactly the strategic allies that you need to achieve planned growth.Kevin agrees, “One of Baker Tilly’s top three priorities over the next five years is to make sure we’re outsourcing the work that makes sense to be outsourced,” he says. “But we don’t want to work with a faceless organization; we want to work with a real partner who understands our needs and how we intend to grow so they can help us with that vision and goal.”
As an example, he describes first working with Scrubbed. “I started with some discussions about doing audit support for me and my clients, and, over a two year period, I more than doubled my book of business. I would never have even been close to that without the help of Scrubbed.”
The focus is on being transparent about how the firm would like to grow and choosing a partner that understands the strategy and can complement the firm’s strengths to help them achieve that growth. In Youni’s view, that investment in the relationship and effort to understand the unique needs of each client is at the heart of Scrubbed’s mission. “You don’t just get staff; you get supervisors, directors, senior managers, and a whole suite of services focused on supporting your growth. We like to call it the right fit at the right time, “she says. “You have to choose what works for your firm’s growth and how you like to work. “
Choose Experience Across Industries
When choosing an outsourcing partner, it’s important to look for firms with a full suite of services and experience in various industries and specializations. This ensures that you’re not just hiring bodies but building a team that can supervise and manage complex tasks for a wider range of your clients.“We have partners and directors that are experienced in e-commerce and retail, media and entertainment, and many more different industries,” explains Youni.” So, you can find auditors, tax specialists, or technical accountants for whatever your client needs.” For clients like Baker Tilly, that means an easy way to offer more services to existing clients or attract new ones without having to forge new relationships or audition new partners. For example, Kevin focuses mainly on the audit practice, but Baker Tilley’s relationship with Scrubbed has gone beyond that single function. “I’m not a benefit plan expert, but we’ve used Scrubbed on our benefit plans, and you know how specialized that is,” he says. “It’s very unique, very specific, but Scrubbed is able to take our engagements from start to finish.”
In reality, successful outsourcing is about more than simply delegating tasks; partnering with an outsourcing firm with multiple strings to its bow can lead to stronger relationships and better outcomes. “What we do as accountants to build relationships with clients is also what we do with our outsourcing partners,” says Kevin. “We have dedicated relationship managers who meet with them weekly and discuss how we can improve the process for both parties.” Regular communication and collaboration help both parties continuously work towards improvement and alignment, leading to a more successful outsourcing arrangement.
Take Advantage of Specialized Talent
One advantage of outsourcing is the access to specialized talent that may be difficult to hire or retain, particularly in a tight talent market. This can be critical for firms looking to broaden their services or enter new markets without the overhead of hiring full-time specialized staff. At Scrubbed, this is a key priority. “A lot of times people think, Oh, let me just get some more bookkeepers, or people that can do bank reconciliations – they think that the most basic transactional part is where you start,” says Youni. “Our approach is that we offer on demand, very high quality labor with specialized talent that is harder and much more expensive to find. It’s a much smaller pool and a much more dedicated type of resource.”That’s exactly what firms like Baker Tilly need to offer broader services to clients and grow the business. “It’s high-level work here. It’s not a processing center, and these are highly talented individuals who can take our engagements from start to finish,” says Kevin. “There’s a myth with outsourcing that, somehow, talent stops at the US border. And that’s ridiculous.”
As well as talented audit, tax, and technical accounting professionals, outsourcing firms like Scrubbed will also include hyper-specialized staff well-versed in advanced tools, including AI-driven solutions. These professionals bring a wealth of experience from working with different firms and a wide range of software and tools. “An organization like Scrubbed, where they’re working with different firms, sees so many more AI tools and other types of software than we ever will at Baker Tilly,” Kevin says. “That’s an incredible resource for us.”
Consider Workload Management
Another effect of the talent crunch is that senior accountants often have to cover routine work as well as their supervisory or managerial responsibilities, leading to more burnout among top performers. Bringing on an outsourced accounting partner can help CPA firms offer new services while also becoming more efficient and allowing senior internal resources to spend more time on client-focused activities that contribute to the firm’s strategic objectives and success.While outsourced accounting firms provide the flexibility to right-size the workload for everyone, Kevin also emphasizes the importance of considering the outsourced partner’s workload. “At Baker Tilly, we treat our complementary workforce as an extension of our team. We’re also making sure their workload is not too heavy, just like we do with our internal team members.” This balanced approach can improve retention and job satisfaction which both enhance overall firm productivity.
It’s a goal shared by Scrubbed, where the focus is not just on recruiting top talent to crunch through work but also on creating real career opportunities and progression for the team. “We have our own internal growth plan,” says Youni. “So, when you are with Scrubbed, there are real career paths from staff to director and beyond. As a result, our retention rates are very high, and our team is very dedicated. That’s different from some of our competitors, and it translates into higher quality services for our clients.”
Balance Cost and Quality Considerations
Another effect of the talent crunch is that senior accountants often have to cover routine work as well as their supervisory or managerial responsibilities, leading to more burnout among top performers. Bringing on an outsourced accounting partner can help CPA firms offer new services while also becoming more efficient and allowing senior internal resources to spend more time on client-focused activities that contribute to the firm’s strategic objectives and success.While outsourced accounting firms provide the flexibility to right-size the workload for everyone, Kevin also emphasizes the importance of considering the outsourced partner’s workload. “At Baker Tilly, we treat our complementary workforce as an extension of our team. We’re also making sure their workload is not too heavy, just like we do with our internal team members.” This balanced approach can improve retention and job satisfaction which both enhance overall firm productivity.
It’s a goal shared by Scrubbed, where the focus is not just on recruiting top talent to crunch through work but also on creating real career opportunities and progression for the team. “We have our own internal growth plan,” says Youni. “So, when you are with Scrubbed, there are real career paths from staff to director and beyond. As a result, our retention rates are very high, and our team is very dedicated. That’s different from some of our competitors, and it translates into higher quality services for our clients.”
