Using Outsourcing to Stay on Top

By Mirchandani, Kishore; Liggett, Jim | The CPA Journal, June 2002 | Go to article overview

Using Outsourcing to Stay on Top


Mirchandani, Kishore, Liggett, Jim, The CPA Journal


News Views

One way CPA firms can meet the challenges of the future is to focus their resources on the most important functions and outsource other areas. Done property, this avoids the pitfalls of the traditional solution (adding more people) while avoiding the downside of outsourcing (losing control). Being a truly full-service organization is an admirable goal but rarely possible. Upon analysis, being completely self-contained may not even be desirable.

This is where business process outsourcing (BPO) services come in. BPO is the transfer of a function or service or delegation of day-to-day, nonfiduciary responsibilities to a third-party supplier. This makes best practices available at sometimes a fraction of the cost of in-house. The technological revolution of the last decade has made outsourcing more efficient and accessible than ever, while significantly enhancing the control and quality of the functions. BPO services have been predicted to grow in leaps and bounds; Gartner Dataquest has predicted that BPO of finance services will exceed $38 billion in 2004.

A firm needs to understand where its real value is and put its best people and resources there. All other processes become candidates for outsourcing. The following are common BPO candidates:

* Bookkeeping for clients

* Tax co-sourcing solutions

* Document management

* Staffing

* Information technology (IT) services.

Outsourcing the bookkeeping function. CPA firms that provide accounting services to clients typically follow one of two methods: sending its accountants to a client's office to write up the books, or maintaining the books in its own offices after calling in the base documents. Either method requires a battery of accountants to balance the books and maintain records.

With increasing costs for recruiting, training, and retaining accountants, as well as for maintaining desk space, firms can benefit from contracting with a BPO service provider to manage the base accounting work at a fraction of the cost. The CPA firms can then concentrate on value-added services while bringing clients the expertise and stateof-the-art technology that the BPO service offers. Such arrangements include the following features:

* Use of the service provider's trade name

* Access to the service provider's software at a fraction of the cost

* Use of the service provider's marketing collateral

* Access to a standard workflow for all the processes

* Staff training

* Ease in conducting reviews.

If a firm does not want to directly enter into a licensing arrangement, it could refer clients to the outsource service provider under a referral agreement. This would again allow the CPA firm to focus on providing clients with high-value services. Clients would gain access to timely financial statements without needing their own in-house accounting team, allowing them to focus on their core businesses as well. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Using Outsourcing to Stay on Top
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.