CPA Accountant

Good accounting and bookkeeping services can considerably increase the likelihood of business success.

The following two tables from The Small Business Book (Robert Hamilton and John English) make the point eloquently.

Survival Related To frequency of accounting Report

Frequency Survival Rate %

At Last month – 79

Quarterly – 71.5

Half-yearly – 49.9

Annually – 36.0

Survival in relation to accounting records

Accounting Records Survival Rate %

Excellent –good — 63.0

Average — 49.8

Inadequate — 20.1

Poor – non existent — 2.5

As one can see the difference between average and good accounting can make a 25% difference in business survival.

Until recently small businesses could not afford best accounting or bookkeeping services. Small companies had to rely on part-time bookkeeping services, with no guarantee that the person will be available when needed. Part-time bookkeeping or accounting service providers cannot provide the diversity of accounting and bookkeeping experience needed.

Even for larger companies, there is a shortage of accountants. The number of accounting graduates is down 25% and the number of CPA candidates is down 22%. Since the need for accounting expertise is going up and the supply is down, the salaries for US accountants are increasing faster than inflation.

Companies like General Electric pioneered outsourced accounting and bookkeeping services. Many large companies have followed suit. Typically they have created captive operations with at least 300+ employees.

There is now a new class of vendors (primarily from India) who provide outsourced accounting and bookkeeping services to clients who may need only a quarter-time accountant to clients needing three hundred accountants.

Outsourced accounting and bookkeeping service firms have several advantages:

1. They can train their staff consistently in accounting, bookkeeping, or tax return preparation.

2. They are much less vulnerable in case of employee absences, illnesses etc.

3. The outsourced accounting and bookkeeping service firms have to invest in quality control to retain clients.

4. For one price the customer receives a bundle of necessary skills, all the way from clerical level to controller level.
Outsourced accounting and bookkeeping service firms provide:

1. Flexibility in manpower requirement – one can buy only the required services from outsourced accounting and bookkeeping service firms.

2. The client is relieved of the need to hire, train, and manages staff.

3. The client is also relieved of rent, computers etc.

4. Considerable cost-savings. Outsourced accounting or bookkeeping services cost as little as 1/3rd. the cost of comparable US resources.

One of the arguments against using Outsourced accounting and bookkeeping services is security or loss of control of data. Outsourced accounting and bookkeeping services firms spend considerable time and energy to keep their data secure.

To summarize, use of outsourced accounting and bookkeeping services, can give the business owner a key tool that he can use to get timely, actionable information. It raises the probability of success at an affordable price.

When it comes to selling things, the human tendency to package can make life easier. When you’re marketing yourself and trying to sign on new clients, you’ll want to take full advantage of aspect of human psychology. Bundle services together and suddenly a new client will be bringing you as much business as two or three clients in the past.

When it comes to buying things, packages are attractive because they seem to simplify the client’s life. If an insurance company offers me a package deal on car insurance, home owner’s insurance, and life insurance, suddenly I have so many fewer decisions to make-and I don’t have to deal with three different insurance agents. I might save some money, but even if I don’t, I save aggravation and time, and most people value their time as much as their money. Costco or BJ’s Club are good examples of packaging in the retail world, and the number of people that flock to these giant stores indicate the popularity of packaging. Fast food places have the value meal, which is a package of a sandwich, fries and a drink.

What is also important is to offer different packages, i.e. to give the client options. When I first started out, I offered piecemeal services at standard rates. Then I realized that clients work in a different way. Many people like options. They don’t want to be “forced” into taking something that doesn’t suit them. They want the option of small, medium and large. Going to the example I gave of the restaurant, they have a small value meal, medium or large.

”Small, medium, or large” doesn’t quite work for accounting services. The principle I use to distinguish between levels of service is this: the more accessibility to me and to my staff a package offers the client, the higher the fees. So while we can custom tailor the service package to fit their needs, nonetheless the services are packaged based on frequency.

In addition to packaging your services, you should consider cross-selling. Many years ago I learnt while attending a seminar by the legendary marketer Jay Abrahams that there are 3 ways to grow your practice:

1) Increase number of new clients
2) Increase the fees paid by each client
3) Increase the frequency of purchase or sell the same client more services

Cross selling is the way the CPA practitioner increases the frequency of purchase.

When you have a relationship with the client, you can offer them other services that will help the client. How does one go about finding out the services that your clients need? Not to oversimplify it, but really, the best way to find out is by asking. We recently conducted a survey and we called up most of my business clients to ask them how we were scoring and what else we could do that could help them. It’s really very instructive to hear the clients’ perspective on things. I have also found this to be one of the best ways to find out other services we should be providing.

Here’s a partial list of additional services to offer:

• Financial planning or wealth management services
• QuickBooks consulting – Outsourced accounting (A couple of years, we packaged our QuickBooks consulting services as either a 10-hour package or a 20-hour package, to be used in one year.)
• Audit protection
• Business consulting
• Business valuation services
• Payroll services
• Controllership services

Using this list as a starting point, talk to your clients and find out what services they need that you could offer. Specialize in what your target clients want, and you’re just about certain to grow your practice.

Accounting, as you know is an indispensable function of a business organization. It is mandatory to keep your accounts in check and recorded neatly so as to keep track of your company’s growth and fall. However, the problem lays in the boredom the job of accounting gives owing to which professional accountants need huge payment. Instead of paying high to accountants in your firm and managing their other expenses, it would be a better option if you hire the professional assistance from accounting outsourcing services.

These accounting outsourcing services providing firms do deal in the accounting and bookkeeping task for all the industries including, technology, raw material, textile, real-estate, finance, and marketing. This is an additional benefit for you as if you have invested in two different businesses; you still have an option for accounting outsourcing.

It is very important for every business firm to have well organized and maintained accounting record since as per US laws, it is essential for all the firms or businesses running in the nation to present accounting record of around about 8 years. These accounting records are a mirror to your business. These tell one how the business is doing in reality. It is flourishing or has faced a downfall recently.

In the hustle-bustle of the expansion and growth of the business you tend to slag in accounting task making number of bills, invoices, and tax forms top one another in a heap of pile. The negligence in accounting, later, results into the huge monetary losses for the company. So, to keep yourself updated about how your company is working, how much you invested, what all you gained and how much profit or loss had been incurred , it is essential for you to hire the professional and expert help from accounting outsourcing services providers in your city.

You can find the names of popular accounting outsourcing services available in your vicinity. Check the terms and conditions, information regarding what all accounting related services are being offered, and last but not least, what other service buyers have to say about the firm you are selecting to serve your accounting purpose.

Make sure you have read all the terms and conditions laid put in the contract before you sign the deal. This will keep you on safer part so that whenever you feel any breach of trust has taken place, it would be easier for you to make claims.

Accounting Outsourcing Services providers, however have great experience working in the field. They hire expert and highly skilled CPAs, accountants so that your accounting data does get sorted out with ease. All the finance, and accounts related data and information is organized in a chronological manner to make them easily accessible. They are all trained in using high-tech software tools for making a serialized directory of your accounting archives. For special security consideration special passwords are designed to make archives accessible only to management.

So, why waiting, sort out accounting related issues quickly before you get a huge set back with some monetary loss.