Accounting firms are making money from outsourcing

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Accounting practices can boost their profitability by outsourcing their own services as well as by outsourcing some of their own routine compliance work.

According to an article on Accountingweb, it makes financial sense for accounting practices to outsource their diverse skills and experience to small businesses as and when they require them. This will include traditional payroll and bookkeeping support to providing virtual finance directors.

At the same time, accounting firms can subcontract some or all of their routine compliance work to lower cost providers, as the outsourcing provider represents an infinitely flexible resource charged only by the hour for work done.

For a very small business, it is often cost-effective to outsource services like payroll, bookkeeping or VAT returns to their existing accountant, and while they are busy building customer relationships, they can free up their time by outsourcing their routine tasks.

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