New outsourcing twists to old accounting practices
Howard Wolowsky, editor and accountant talks about a new form of outsourcing that is giving new and profitable outsourcing twists to accounting practices.
In the accounting arena, outsourcing has evolved to refer to tax preparation, accounting services and the like. Tax preparation is usually offshore work done in other countries with lower work rates. With accounting services however, the clients ask for CFO-type of work as output. Other forms are available, but one gaining increasing visibility is one wherein the CPA firm develops its specialty services to be offered to other CPA firms that in turn provide that service to its own client.
This takes 2 of usual forms:
- The outsourced firm is provided with materials with which the services would be executed. These are for delivery and marketing, alongside training provided in the service delivery and full support and guidance of the outsourcer throughout the service specialty’s development.
- The outsourcer company provides the specialty service in conjunction with the other firm whose role is played out in the lead introductory position with the client.
This works well either way since the company on the receiving end of the newly-learned and acquired specialty – skills, knowledge, etc – is able to launch these with less stops and starting pains. This also provides new practice grounds with established methods serving as foundation, as well as freedom from astronomic initial development costs and wasted manpower and resources poured into the endeavor.
This is favorable on the outsourcer’s end as well since the new specialty provides additional revenue stream for that particular project and income for the involved teams.
This has been in motion in a various practice areas: cost segregation, financial planning, state and local tax savings for businesses, etc. More are anticipated with recognition from firms of the procedures’ benefits. As an added bonus, this form of outsourcing can work for a company of any size.
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