To grow and thrive going forward, CPA firms must have access to the right staffing resources to provide high-quality services to their clients and capture new business opportunities. However, the industry is suffering from staffing shortages that leave CPA firms shorthanded and their employees’ bandwidth stretched.
Consider 2021 AICPA research published by the Journal of Accountancy, which shows that “finding qualified staff is an enduring concern that continues to challenge CPA firms this year. Hiring staff emerged as the No. 1 issue affecting firms that employ 6–10, 11–20, or 21 or more professionals.” Consider also that every business and industry have governing regulations that require specialized talent and expertise. Staffing up with full-time employees to meet the vast range of requirements clients have today can be cost prohibitive and logistically difficult for most CPA firms.
To navigate these operational headwinds and position CPA firms for future growth, the industry is increasingly moving toward an outsourcing model. By partnering with an experienced, reputable financial services outsourcing organization, CPA firms can step up to meet a host of industry challenges today and scale their practices to meet the needs of new and existing clients going forward.
Top Industry Challenges
According to CPA Practice Advisor, CPA firm C-suite executives cite four primary areas of concern for their businesses: lack of talent, continued growth, retaining existing employees, and reducing costs.
Today’s labor shortage is not expected to end any time soon. Research reported in the Denver Post notes that the employee turnover rate at the largest accounting firms surveyed averages 17% a year, “and one in six firms experienced turnover rates above 20%. High turnover was built into the business model, but in a tight labor market with fewer entrants, that approach simply isn’t sustainable.” Accordingly, CPA firms need access to a broader labor market to sustain growth.
Staving off employee burnout is another top concern of CPA firms as this is a common issue industrywide – and a leading cause of employee attrition. CPA firms are seeking ways to better support their staff and give top talent more fulfilling assignments that allow them to grow and advance professionally.
The globalization of our economy has implications as well, as businesses everywhere increasingly transact across borders. To ensure compliance with global tax and commerce regulations requires a depth of expertise that many CPA firms simply do not have internally.
Plus, like many other businesses, CPA firms are grappling with the effects of the “Great Resignation,” whereby the staffing resources they have counted on for years have suddenly dwindled. Digitizing and automating processes and workflows have helped fill in operational gaps, but also have created a need to train and upskill employees as new technologies are deployed.
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Why Outsourcing Powers Growth
To meet these and other industry challenges, an outsourcing model offers CPA firms the flexibility, access to specialized talent, and cost savings they need. Tapping external staffing resources through an outsourcing partner can bring much-needed support to CPA firm employees during seasonal crunches, such as the annual tax season, and can help firms better manage routine tasks all year long while freeing up their top internal talent for more strategic and engaging projects.
An outsourcing model also positions CPA firms for growth by enabling contracted access to just the right expertise to meet specific client requirements, including those involving international business models, without the costs of retaining highly specialized full-time hires.
Additionally, CPA firms can expand the breadth of their service offerings through an outsourcing model. For example, while their internal teams may be highly skilled in tax planning, preparation, and auditing, outsourced professionals could be brought in on an as-needed basis to provide clients with additional financial services, from financial modeling, planning, and analysis to strategic forecasting and investor presentations.
Ultimately, CPA firms that can nimbly respond to fluctuating operational demands and client needs will grow and succeed despite shifting economic conditions. The ability to right-size teams of professionals for the exact needs of each business they serve is key to retaining and expanding client relationships.
Partnering with Scrubbed
At Scrubbed, we provide a full portfolio of outsourced accounting and financial services to CPA firms worldwide. With headquarters in San Francisco and main operations in the Philippines, our team of more than 800 skilled professionals forms a community of problem solvers who are there for your CPA firm to tap around the clock.
From bookkeeping to complex planning and analysis, we help your team meet the needs of all your clients, from startups and small businesses to nonprofits and established companies. Because we operate offshore, we are able to provide your CPA firm with world class, highly skilled and fully credentialed talent at a reasonable rate.
Our high quality, high-touch service model and commitment to helping you maintain a vibrant company culture are central to our service model and important building blocks to help your firm sustain growth. As a values-based organization, we bring an unrivaled work ethic to your firm and operate according to our own code of ethics built on the principles of integrity, empathy, excellence, openness, and communication.
Let us help you expand your market reach with solutions to your most pressing staffing challenges. Contact us for a free consultation today.