CPA Firms Or Outsourced Accounting Service: Which One Is The Right Fit For You?

• Hardik
• Aug 23, 2021

All businesses have the same basic aims when it comes to reviewing costs, weighing important financial movements, and maintaining best tax practises, whether they are a publicly traded corporation that is admired as an industry leader or a scrappy startup that is just barely over the launch. 

However, depending on a company’s demands, the procedure for achieving those goals can look very different. Should I hire a CPA firm or employ an outsourced accounting firm? This is one of the most important questions a business must ask.

When making the decision, there are numerous aspects to consider. Technology, availability, and, of course, cost all play a role. In fact, it’s also important to note that according to a study, large businesses are 66% more likely to outsource than smaller companies. 

Let’s look at the advantages and disadvantages of both to evaluate which is best for a specific company situation. However, before we delve into understanding the differences, let’s first understand what each of these firms does.  

What Are CPA Firms? 

CPA firms are mostly referred to as a one-stop-shop solution for all accounting and bookkeeping needs for businesses. That being said, while most CPA firms offer an array of services, they are more focused on offering services related to meeting the compliance requirements of the IRS, banks and investors. They may also specialise in tax audits and advisory services. 

When it comes to how CPA firms work, they often offer a single bookkeeper to each account who is responsible for all of the accounting, while a professional CPA ultimately reviews the completed work. 

What Are Outsourced Accounting Firms?

Usually, every outsourced accounting firm has their own style of working and services offered, however, most of them offer a team of resources that are dedicated to your business and financial operations. 

Your team will usually comprise of a bookkeeper who is responsible for transactional processing, a staff accountant that works on the close at the end of the month, and finally an accounting manager who oversees the entire team. 

Outsourced accounting firms usually work in a very flexible model, wherein you have the ability to curate your own package with services that you actually need. 

CPA Firms VS Outsourced Accounting Firms: Which One Is Better? 

As you can see based on their description and job roles, the functionality of both a CPA firm and an outsourced accounting firm are quite similar. However, what majorly differs is their working style, flexibility and effectiveness in any given situation. 

We’ve broken down three main areas to compare the effectiveness of each of these firms. 

CPA Firms VS Outsourced Accounting Firms: Technology 

When it comes to technology, a lot of ink has been poured on the current accounting tech revolution, which includes anything from blockchain integrations to machine learning. However, upheaval is nothing new in accounting, and technological advancements in direct client services remain substantially democratised.

This means that both types of accounting firms have access to innovations in teleconferencing, cloud services, accounting software, and even IT risk management. 

For example, an outsourced account firm has similar access to crucial technical aides as CPA firms, whether it’s facilitating e-signature via tools like HelloSign or automating tailor-made reports using software like QuickBooks.

However, according to research conducted by the American Institute of CPAs, 92 per cent of CPAs believe they are not future-ready, especially in terms of availability and usage of technology. 

Furthermore, national and regional firms frequently work with clients who use ERP solutions (think Workday, Oracle, NetSuite), but some firms prefer to work with small enterprises that use entry-level solutions. Before making a decision, it’s always a good idea to examine your own needs and speak with providers about what they have to offer. 

CPA Firms VS Outsourced Accounting Firms: Accessibility 

Simply put, companies must decide whether or not they desire direct, on-site contact with their CPA. Because either a CPA company or an outsourced solution can meet these objectives to differing degrees, hence, it’s critical for the customer to be clear about his or her expectations. 

Much depends on the nature of the work, as many regional firms specialise in auditing or taxation, and many audits are now conducted digitally rather than on-site.

Direct interaction is especially vital in the early phases of a company’s life cycle or when a client requires customised reporting beyond the standard monthly statements. Minor modifications to accounts receivable terms, for example, or scaling up for a new product offering, might drastically alter a small business’s liquidity. As a result, it’s vital for you to know exactly which invoices can be paid this week and whether or not you’ll be able to make payroll.

Hence, this factor should largely play into your ultimate decision of choosing between a CPA firm or an outsourced account firm. 

CPA Firms VS Outsourced Accounting Firms: Expertise 

Expertise, especially that gathered from a highly selective pool, is unquestionably something qualified outsourced accounting firms can offer. These individuals are usually experts in their fields and trailblazers in their chosen fields. 

They’re experts who also place a high value on professional independence, and they’re certain that the outsourcing model allows for the best, most direct level of customer service.

Mostly, this kind of expertise and dedication is hard to find when it comes to CPA firms, who usually focus on a more generic type of approach, or work on the CPA outsourcing model. 

Finding The Right Fit For You 

As you might have gathered based on the information provided above, both CPA firms and outsourced accounting firms come with their own set of pros and cons. 

While needs differ from case to case, outsourcing appears to be a feasible alternative to CPA companies, provided that outsourced firms usually meet the requisites in terms of accessibility, technology, and cost-effectiveness.

However, not every company can be satisfied with outsourced accounting firm services. Large corporations, for example, may choose to hire CPA accounting firms for specialised services such as international taxation and compliance with the SEC’s tighter accounting regulations for public companies. 

Furthermore, you never know when the next important financial regulation will be implemented, thus a major corporation with complex transactions may benefit from the services of a deep-bench speciality firm.

However, for many firms, finance and accounting outsourcing is not only a viable but also the ideal solution. For example, it’s normal for a large corporation to outsource project-based work like financial model development or system conversion. Hiring a professional outsourced accounting firm like ChaterCPA is a more cost-effective choice for small business accounting in these circumstances.

So, the ultimate decision between a CPA firm and an outsourced accounting firm depends entirely on your current and future needs!

All businesses have the same basic aims when it comes to reviewing costs, weighing important financial movements, and maintaining best tax practises, whether they are a publicly traded corporation that is admired as an industry leader or a scrappy startup that is just barely over the launch. 

However, depending on a company’s demands, the procedure for achieving those goals can look very different. Should I hire a CPA firm or employ an outsourced accounting firm? This is one of the most important questions a business must ask.

When making the decision, there are numerous aspects to consider. Technology, availability, and, of course, cost all play a role. In fact, it’s also important to note that according to a study, large businesses are 66% more likely to outsource than smaller companies. 

Let’s look at the advantages and disadvantages of both to evaluate which is best for a specific company situation. However, before we delve into understanding the differences, let’s first understand what each of these firms does.  

What Are CPA Firms? 

CPA firms are mostly referred to as a one-stop-shop solution for all accounting and bookkeeping needs for businesses. That being said, while most CPA firms offer an array of services, they are more focused on offering services related to meeting the compliance requirements of the IRS, banks and investors. They may also specialise in tax audits and advisory services. 

When it comes to how CPA firms work, they often offer a single bookkeeper to each account who is responsible for all of the accounting, while a professional CPA ultimately reviews the completed work. 

What Are Outsourced Accounting Firms?

Usually, every outsourced accounting firm has their own style of working and services offered, however, most of them offer a team of resources that are dedicated to your business and financial operations. 

Your team will usually comprise of a bookkeeper who is responsible for transactional processing, a staff accountant that works on the close at the end of the month, and finally an accounting manager who oversees the entire team. 

Outsourced accounting firms usually work in a very flexible model, wherein you have the ability to curate your own package with services that you actually need. 

CPA Firms VS Outsourced Accounting Firms: Which One Is Better? 

As you can see based on their description and job roles, the functionality of both a CPA firm and an outsourced accounting firm are quite similar. However, what majorly differs is their working style, flexibility and effectiveness in any given situation. 

We’ve broken down three main areas to compare the effectiveness of each of these firms. 

CPA Firms VS Outsourced Accounting Firms: Technology 

When it comes to technology, a lot of ink has been poured on the current accounting tech revolution, which includes anything from blockchain integrations to machine learning. However, upheaval is nothing new in accounting, and technological advancements in direct client services remain substantially democratised.

This means that both types of accounting firms have access to innovations in teleconferencing, cloud services, accounting software, and even IT risk management. 

For example, an outsourced account firm has similar access to crucial technical aides as CPA firms, whether it’s facilitating e-signature via tools like HelloSign or automating tailor-made reports using software like QuickBooks.

However, according to research conducted by the American Institute of CPAs, 92 per cent of CPAs believe they are not future-ready, especially in terms of availability and usage of technology. 

Furthermore, national and regional firms frequently work with clients who use ERP solutions (think Workday, Oracle, NetSuite), but some firms prefer to work with small enterprises that use entry-level solutions. Before making a decision, it’s always a good idea to examine your own needs and speak with providers about what they have to offer. 

CPA Firms VS Outsourced Accounting Firms: Accessibility 

Simply put, companies must decide whether or not they desire direct, on-site contact with their CPA. Because either a CPA company or an outsourced solution can meet these objectives to differing degrees, hence, it’s critical for the customer to be clear about his or her expectations. 

Much depends on the nature of the work, as many regional firms specialise in auditing or taxation, and many audits are now conducted digitally rather than on-site.

Direct interaction is especially vital in the early phases of a company’s life cycle or when a client requires customised reporting beyond the standard monthly statements. Minor modifications to accounts receivable terms, for example, or scaling up for a new product offering, might drastically alter a small business’s liquidity. As a result, it’s vital for you to know exactly which invoices can be paid this week and whether or not you’ll be able to make payroll.

Hence, this factor should largely play into your ultimate decision of choosing between a CPA firm or an outsourced account firm. 

CPA Firms VS Outsourced Accounting Firms: Expertise 

Expertise, especially that gathered from a highly selective pool, is unquestionably something qualified outsourced accounting firms can offer. These individuals are usually experts in their fields and trailblazers in their chosen fields. 

They’re experts who also place a high value on professional independence, and they’re certain that the outsourcing model allows for the best, most direct level of customer service.

Mostly, this kind of expertise and dedication is hard to find when it comes to CPA firms, who usually focus on a more generic type of approach, or work on the CPA outsourcing model. 

Finding The Right Fit For You 

As you might have gathered based on the information provided above, both CPA firms and outsourced accounting firms come with their own set of pros and cons. 

While needs differ from case to case, outsourcing appears to be a feasible alternative to CPA companies, provided that outsourced firms usually meet the requisites in terms of accessibility, technology, and cost-effectiveness.

However, not every company can be satisfied with outsourced accounting firm services. Large corporations, for example, may choose to hire CPA accounting firms for specialised services such as international taxation and compliance with the SEC’s tighter accounting regulations for public companies. 

Furthermore, you never know when the next important financial regulation will be implemented, thus a major corporation with complex transactions may benefit from the services of a deep-bench speciality firm.

However, for many firms, finance and accounting outsourcing is not only a viable but also the ideal solution. For example, it’s normal for a large corporation to outsource project-based work like financial model development or system conversion. Hiring a professional outsourced accounting firm like ChaterCPA is a more cost-effective choice for small business accounting in these circumstances.

So, the ultimate decision between a CPA firm and an outsourced accounting firm depends entirely on your current and future needs!

All businesses have the same basic aims when it comes to reviewing costs, weighing important financial movements, and maintaining best tax practises, whether they are a publicly traded corporation that is admired as an industry leader or a scrappy startup that is just barely over the launch. 

However, depending on a company’s demands, the procedure for achieving those goals can look very different. Should I hire a CPA firm or employ an outsourced accounting firm? This is one of the most important questions a business must ask.

When making the decision, there are numerous aspects to consider. Technology, availability, and, of course, cost all play a role. In fact, it’s also important to note that according to a study, large businesses are 66% more likely to outsource than smaller companies. 

Let’s look at the advantages and disadvantages of both to evaluate which is best for a specific company situation. However, before we delve into understanding the differences, let’s first understand what each of these firms does.  

What Are CPA Firms? 

CPA firms are mostly referred to as a one-stop-shop solution for all accounting and bookkeeping needs for businesses. That being said, while most CPA firms offer an array of services, they are more focused on offering services related to meeting the compliance requirements of the IRS, banks and investors. They may also specialise in tax audits and advisory services. 

When it comes to how CPA firms work, they often offer a single bookkeeper to each account who is responsible for all of the accounting, while a professional CPA ultimately reviews the completed work. 

What Are Outsourced Accounting Firms?

Usually, every outsourced accounting firm has their own style of working and services offered, however, most of them offer a team of resources that are dedicated to your business and financial operations. 

Your team will usually comprise of a bookkeeper who is responsible for transactional processing, a staff accountant that works on the close at the end of the month, and finally an accounting manager who oversees the entire team. 

Outsourced accounting firms usually work in a very flexible model, wherein you have the ability to curate your own package with services that you actually need. 

CPA Firms VS Outsourced Accounting Firms: Which One Is Better? 

As you can see based on their description and job roles, the functionality of both a CPA firm and an outsourced accounting firm are quite similar. However, what majorly differs is their working style, flexibility and effectiveness in any given situation. 

We’ve broken down three main areas to compare the effectiveness of each of these firms. 

CPA Firms VS Outsourced Accounting Firms: Technology 

When it comes to technology, a lot of ink has been poured on the current accounting tech revolution, which includes anything from blockchain integrations to machine learning. However, upheaval is nothing new in accounting, and technological advancements in direct client services remain substantially democratised.

This means that both types of accounting firms have access to innovations in teleconferencing, cloud services, accounting software, and even IT risk management. 

For example, an outsourced account firm has similar access to crucial technical aides as CPA firms, whether it’s facilitating e-signature via tools like HelloSign or automating tailor-made reports using software like QuickBooks.

However, according to research conducted by the American Institute of CPAs, 92 per cent of CPAs believe they are not future-ready, especially in terms of availability and usage of technology. 

Furthermore, national and regional firms frequently work with clients who use ERP solutions (think Workday, Oracle, NetSuite), but some firms prefer to work with small enterprises that use entry-level solutions. Before making a decision, it’s always a good idea to examine your own needs and speak with providers about what they have to offer. 

CPA Firms VS Outsourced Accounting Firms: Accessibility 

Simply put, companies must decide whether or not they desire direct, on-site contact with their CPA. Because either a CPA company or an outsourced solution can meet these objectives to differing degrees, hence, it’s critical for the customer to be clear about his or her expectations. 

Much depends on the nature of the work, as many regional firms specialise in auditing or taxation, and many audits are now conducted digitally rather than on-site.

Direct interaction is especially vital in the early phases of a company’s life cycle or when a client requires customised reporting beyond the standard monthly statements. Minor modifications to accounts receivable terms, for example, or scaling up for a new product offering, might drastically alter a small business’s liquidity. As a result, it’s vital for you to know exactly which invoices can be paid this week and whether or not you’ll be able to make payroll.

Hence, this factor should largely play into your ultimate decision of choosing between a CPA firm or an outsourced account firm. 

CPA Firms VS Outsourced Accounting Firms: Expertise 

Expertise, especially that gathered from a highly selective pool, is unquestionably something qualified outsourced accounting firms can offer. These individuals are usually experts in their fields and trailblazers in their chosen fields. 

They’re experts who also place a high value on professional independence, and they’re certain that the outsourcing model allows for the best, most direct level of customer service.

Mostly, this kind of expertise and dedication is hard to find when it comes to CPA firms, who usually focus on a more generic type of approach, or work on the CPA outsourcing model. 

Finding The Right Fit For You 

As you might have gathered based on the information provided above, both CPA firms and outsourced accounting firms come with their own set of pros and cons. 

While needs differ from case to case, outsourcing appears to be a feasible alternative to CPA companies, provided that outsourced firms usually meet the requisites in terms of accessibility, technology, and cost-effectiveness.

However, not every company can be satisfied with outsourced accounting firm services. Large corporations, for example, may choose to hire CPA accounting firms for specialised services such as international taxation and compliance with the SEC’s tighter accounting regulations for public companies. 

Furthermore, you never know when the next important financial regulation will be implemented, thus a major corporation with complex transactions may benefit from the services of a deep-bench speciality firm.

However, for many firms, finance and accounting outsourcing is not only a viable but also the ideal solution. For example, it’s normal for a large corporation to outsource project-based work like financial model development or system conversion. Hiring a professional outsourced accounting firm like ChaterCPA is a more cost-effective choice for small business accounting in these circumstances.

So, the ultimate decision between a CPA firm and an outsourced accounting firm depends entirely on your current and future needs!

All businesses have the same basic aims when it comes to reviewing costs, weighing important financial movements, and maintaining best tax practises, whether they are a publicly traded corporation that is admired as an industry leader or a scrappy startup that is just barely over the launch. 

However, depending on a company’s demands, the procedure for achieving those goals can look very different. Should I hire a CPA firm or employ an outsourced accounting firm? This is one of the most important questions a business must ask.

When making the decision, there are numerous aspects to consider. Technology, availability, and, of course, cost all play a role. In fact, it’s also important to note that according to a study, large businesses are 66% more likely to outsource than smaller companies. 

Let’s look at the advantages and disadvantages of both to evaluate which is best for a specific company situation. However, before we delve into understanding the differences, let’s first understand what each of these firms does.  

What Are CPA Firms? 

CPA firms are mostly referred to as a one-stop-shop solution for all accounting and bookkeeping needs for businesses. That being said, while most CPA firms offer an array of services, they are more focused on offering services related to meeting the compliance requirements of the IRS, banks and investors. They may also specialise in tax audits and advisory services. 

When it comes to how CPA firms work, they often offer a single bookkeeper to each account who is responsible for all of the accounting, while a professional CPA ultimately reviews the completed work. 

What Are Outsourced Accounting Firms?

Usually, every outsourced accounting firm has their own style of working and services offered, however, most of them offer a team of resources that are dedicated to your business and financial operations. 

Your team will usually comprise of a bookkeeper who is responsible for transactional processing, a staff accountant that works on the close at the end of the month, and finally an accounting manager who oversees the entire team. 

Outsourced accounting firms usually work in a very flexible model, wherein you have the ability to curate your own package with services that you actually need. 

CPA Firms VS Outsourced Accounting Firms: Which One Is Better? 

As you can see based on their description and job roles, the functionality of both a CPA firm and an outsourced accounting firm are quite similar. However, what majorly differs is their working style, flexibility and effectiveness in any given situation. 

We’ve broken down three main areas to compare the effectiveness of each of these firms. 

CPA Firms VS Outsourced Accounting Firms: Technology 

When it comes to technology, a lot of ink has been poured on the current accounting tech revolution, which includes anything from blockchain integrations to machine learning. However, upheaval is nothing new in accounting, and technological advancements in direct client services remain substantially democratised.

This means that both types of accounting firms have access to innovations in teleconferencing, cloud services, accounting software, and even IT risk management. 

For example, an outsourced account firm has similar access to crucial technical aides as CPA firms, whether it’s facilitating e-signature via tools like HelloSign or automating tailor-made reports using software like QuickBooks.

However, according to research conducted by the American Institute of CPAs, 92 per cent of CPAs believe they are not future-ready, especially in terms of availability and usage of technology. 

Furthermore, national and regional firms frequently work with clients who use ERP solutions (think Workday, Oracle, NetSuite), but some firms prefer to work with small enterprises that use entry-level solutions. Before making a decision, it’s always a good idea to examine your own needs and speak with providers about what they have to offer. 

CPA Firms VS Outsourced Accounting Firms: Accessibility 

Simply put, companies must decide whether or not they desire direct, on-site contact with their CPA. Because either a CPA company or an outsourced solution can meet these objectives to differing degrees, hence, it’s critical for the customer to be clear about his or her expectations. 

Much depends on the nature of the work, as many regional firms specialise in auditing or taxation, and many audits are now conducted digitally rather than on-site.

Direct interaction is especially vital in the early phases of a company’s life cycle or when a client requires customised reporting beyond the standard monthly statements. Minor modifications to accounts receivable terms, for example, or scaling up for a new product offering, might drastically alter a small business’s liquidity. As a result, it’s vital for you to know exactly which invoices can be paid this week and whether or not you’ll be able to make payroll.

Hence, this factor should largely play into your ultimate decision of choosing between a CPA firm or an outsourced account firm. 

CPA Firms VS Outsourced Accounting Firms: Expertise 

Expertise, especially that gathered from a highly selective pool, is unquestionably something qualified outsourced accounting firms can offer. These individuals are usually experts in their fields and trailblazers in their chosen fields. 

They’re experts who also place a high value on professional independence, and they’re certain that the outsourcing model allows for the best, most direct level of customer service.

Mostly, this kind of expertise and dedication is hard to find when it comes to CPA firms, who usually focus on a more generic type of approach, or work on the CPA outsourcing model. 

Finding The Right Fit For You 

As you might have gathered based on the information provided above, both CPA firms and outsourced accounting firms come with their own set of pros and cons. 

While needs differ from case to case, outsourcing appears to be a feasible alternative to CPA companies, provided that outsourced firms usually meet the requisites in terms of accessibility, technology, and cost-effectiveness.

However, not every company can be satisfied with outsourced accounting firm services. Large corporations, for example, may choose to hire CPA accounting firms for specialised services such as international taxation and compliance with the SEC’s tighter accounting regulations for public companies. 

Furthermore, you never know when the next important financial regulation will be implemented, thus a major corporation with complex transactions may benefit from the services of a deep-bench speciality firm.

However, for many firms, finance and accounting outsourcing is not only a viable but also the ideal solution. For example, it’s normal for a large corporation to outsource project-based work like financial model development or system conversion. Hiring a professional outsourced accounting firm like ChaterCPA is a more cost-effective choice for small business accounting in these circumstances.

So, the ultimate decision between a CPA firm and an outsourced accounting firm depends entirely on your current and future needs!

Feel free to write to us with your questions at info@chartercpa.com or Schedule a call today.

Thanks & Regards,
Knowledge Base Team
CharterCPA Inc.
Your virtual accountant

Website | LinkedIn | Facebook | Twitter | Instagram